Alberta’s NDP government called significant job loss due to the planned minimum wage increase a “realistic possibility” in an internal memo obtained by the Canadian Federation of Independent Business (CFIB).
“At this point, it is not fully known what the overall impact of this kind of upwards wage pressure would have on what is still an uncertain economy,” the memo reads. “But it is reasonable to assume that job loss, and perhaps significant job loss is one realistic possibility.”
Richard Truscott, vice-president of CFIB in Alberta and British Columbia, said the organization made the Freedom of Information and Protection Privacy Act (FOIA) request to obtain the memo after meeting for consultations with the government in June.
“It seemed the government didn’t have a single shred of research or analysis that increasing the minimum wage would create jobs (rather) than kill them,” he said. “Quite frankly, this is such a major new initiative for our province that it’s incumbent on them to do their homework, and they haven’t done that to date.”
The NDP plan to raise the minimum wage to $15 per hour by 2018 began implementation on Oct. 1, with the first “phased increase” raising the general minimum wage from $10.20 to $11.20 per hour. Prior to the increase, Alberta had one of the lowest minimum wages in the country.
Amidst an uncertain financial environment, an increase to $15 by 2018 concerned some business owners in the province. Jeffrey Sheppard, general manager at Mr. Mikes Steakhouse Casual in Airdrie, said delaying implementation was a “far more intelligent” move.
“I said (when I heard about it) that jacking the minimum wage up so quickly was absolutely going to lead to job loss,” he said. “So if the powers that be (decide) to take a look at that and realize that’s what the case is, I think that’s probably a good thing.”
Matthew Williamson, spokesperson for the office of the premier, said the government was moving forward with their election commitment.
“As we implement this policy in stages over the next few years, we will be taking a careful look at the facts in the context of the economic challenges Alberta faces, just as we did when we raised the minimum wage by one dollar this year,” he said in an email to the Airdrie City View. “We are a government that makes decisions based on facts and the decision around the implementation of the minimum wage policy will be based on evidence and consultation with Albertans.”
But Airdrie MLA Angela Pitt said the move to $15 by 2018 showed how “out of touch” the NDP was with Albertans.
“It’s scary to see they are ignoring very sound recommendations and ramming through their ideological (agenda),” she said. “There’s definitely cause for concern in Alberta.”
