Despite a series of consultations and mounting pressure from some small business owners to delay course, the Alberta government is holding firm on its minimum wage implementation plan, with the next increase set for October.
“What we heard (in consultations) was universal support for supporting lower wage Albertans and the need for hardworking Albertans to be able to make ends meet,” Labour Minister Christina Gray said. “There were different opinions on how to get there.
“(But) someone working a full-time job deserves to be able to take care of their family and should not be living in poverty.”
According to a survey conducted by Restaurants Canada, two-thirds of Albertans indicated the planned increase of $15 per hour by 2018 would be too much for businesses to handle with the present state of the economy.
Gray called Restaurants Canada a “well-funded lobby group” and said the implementation plan was based on research that indicated raising the minimum wage would positively impact the economy.
“We have been doing a great deal of review of the research,” she said.
“Most of the (research) shows positive effects from raising the minimum wage, and little negative effects on overall employment is what the most recent research tends to indicate.”
The next phase in the government’s implementation plan will see the minimum wage increasing by $1 per hour on Oct. 1, up to $12.20 per hour – the highest among Canadian provinces, and the third highest in the country, after Nunavut and the Northwest Territories. The move will also scrap the liquor server rate, which is currently set at $10.70 per hour.
Some restaurant owners have voiced concern about what impact the plan as presented could have on their bottom line. Peter Tsembelis, one of the owners of Alexander’s Steakhouse and Pizza, said he has had to pick up the slack of jobs staff would have done, such as delivering pizzas himself to save on delivery fees.
“I have a dishwasher, I’m going to have to pay him $15 (per hour). They’re kids, man. There’s no way I can do that,” he said.
“It’s going to be bad for the customers, too. The big places, I don’t know how they’re going to do it. I don’t know how they’re going to manage. Maybe they’ll raise their prices. I can’t raise my prices any more.”
The minimum wage will rise again on Oct. 1, 2017, to $13.60 per hour, before reaching $15 on Oct. 1, 2018. Weekly and monthly rates will also rise by equivalent amounts.
Airdrie Chamber of Commerce President Linda Bruce said the minimum wage increase could hit Airdrie small businesses hard.
“It’s a struggle. I just wish the government would take a breath, slow down just a little bit. I think every employer always wants to pay a good wage, a good living wage to their employees, but they have a bottom line,” she said. “We want to preserve our businesses so they are strong when the economy recovers.
“These (issues) are difficult. It’s a tough time. You want to pay people what the jobs are worth, but sometimes it’s just (too much).”
