Minimum wage increased a full dollar last Thursday, much to the despair of local business owners.
Alberta's general minimum wage increased from $10.20 to $11.20 on Oct. 1, while the liquor server minimum wage jumped $1.50, increasing from $9.20 to $10.70.
“The biggest concerns from what I have gathered is the end goal of our government raising it to the $15. There are massive concerns surrounding that,” said Tanya Oliver, Executive Director of the Bonnyville and District Chamber of Commerce.
She added, “There are so many implications on so much more than just simply the minimum wage earners.”
The NDP announced a three-step process, which will increase the provincial minimum wage from $10.20 all the way to $15 per hour by 2018.
According to the province, there are 38,000 individuals living in Alberta who earn minimum wage. There are another 370,000 individuals who earn $15 or less per hour and work 44 hours or more per week.
“Increasing minimum wages will help low-income earners take care of their families, and will reduce staff turnover, lower hiring costs, and improve fairness,” said Lori Sigurdson, Minister of Jobs, Skills, Training and Labour.
“Minimum wage earners spend more of their income, boosting the economy and creating jobs.”
While Sigurdson and the NDP government feel the increased minimum wage will stimulate the provincial economy and lead to more jobs, many business owners and fellow politicians disagree.
“We have to be cautious on this and I think that most people would be okay with (raising minimum wage to the) national average, but when we start going beyond it, we start putting people out of work and that is a real problem,” said Scott Cyr, MLA for Bonnyville—Cold Lake.
Oliver is weary of the planned increased to $15 per hour, feeling that it is going result in job losses and workers losing hours.
“Someone who is currently making $15 an hour would expect to make more than somebody who is just starting out. It is going to be a shift right across the board,” said Oliver.
While the 38,000 minimum wage earners will be pulling in $15 per hour, the other 370,000 Albertans currently making $15 per hour or less are all also going to expect wage increases, which is going to lead to higher costs for business owners across the province.
“In the end it is going to cause jobs to be lost and hours to be cut back and (prices for) products and services to increase. The extra money is going to have to come from somewhere. In the end it is going to cost everybody more money, even the minimum wage earners,” said Oliver.
While many disagree with the move the province is making, they are also upset with the reasoning behind the shift to $15 per hour minimum wage.
“We ran on that platform. We were elected and we feel compelled to do the things that we promised to do if we were elected,” said Provincial Finance Minster Joe Ceci, when he was in Cold Lake on Sept. 18.
Cyr accuses the NDP of not studying the impacts of an increased minimum wage feeling they haven't done enough work to prove that the $15 per hour mark is warranted and makes sense.
“They haven't done anything with it,” said Cyr. “I would say that they need to be more cautious.”
According to Oliver, the Bonnyville Chamber of Commerce has been working with other Chambers throughout the province advocating against the move to a $15 minimum wage. She hopes the government will take some more time before moving forward with the entire minimum wage increase.
“Hopefully the government decides to take a closer look at the implications,” said Oliver. “I know it was a platform promise, but just because it was something they committed to doesn't mean it makes senses.”
Although many local business owners are against the move, the province moved forward with their plan and implemented an increase as of Oct. 1.
Come Oct. 1, 2016 the liquor servers wage will be eliminated entirely and a general minimum wage of $11.20 will apply for all who are entitled to minimum wage.
In 2018 the province will have the general minimum wage up to $15 per hour.
