The first phase in the Alberta NDP government’s plan to increase the minimum wage to $15 an hour by 2018 was carried out Oct. 1, as workers saw hourly rates increase from $10.20 to $11.20. Liquor servers saw their hourly wages increase from $9.20 to $10.70.
The remainder of the increase will be carried out over “phased” increases in the next three years.
However, some local business owners are worried having to pay workers more will force them to increase prices on their goods – and maybe even lay off workers.
“I’m going to (have to) lay off one full-time employee and one part-time employee and me and my wife are going to work about 70 hours a day,” said David Gesell, owner of Westcreek Pub in Chestermere. “I have to either increase beer and food by 20 or 25 per cent to cover it, or pay it myself, and I’m going to lose business if I raise the price.
“It’s the worst thing that could ever happen.”
Mark Auer, server and front room manager at Mountain Bistro and Pizzeria in Bragg Creek, had mixed feelings about the increase.
“I think it’s an overall positive implementation, but it will undeniably affect business structure and payroll structures. There’s a lot of unknowns,” he said. “The biggest thing I was thinking about is, will staff care as much when they’re not working for tips? And how will it affect customers if the food prices go up?”
According to Alberta Minister of Jobs, Skills, Training and Labour Lori Sigurdson, the increase followed up on a campaign promise.
“Our government is committed to ensuring all Albertans are able to make a fair wage,” she said in an email to the Rocky View Weekly. “We believe that people working full time should be able to make enough to provide for their families and a more fair minimum wage will help do just that.”
Beiseker Mayor Ray Courtman said although he was in favour of a wage increase, he thought the implementation was moving a “little too fast.”
“I’d like to see it spread over a little bit longer so that small businesses can adjust and adapt to that increase in wages they have to pay. We all, I think, want Albertans making enough money that they can live at least well, meaning not working on the poor line,” he said.
“I can see how it could affect somebody hiring three or four people, and an extra dollar a day now – that adds up to 30, 40 dollars a day. That could affect your bottom line.”
Chestermere-Rocky View Wildrose MLA Leela Aheer said she didn’t think the NDP government had done their “due diligence.”
“We had asked that they step back from that process and look at it from a more practical point of view rather than the ideology,” she said. “It sounds good on paper, but you have to do some form of economic impact study.”
