Minimum wage jumped 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 wage jumped $1.50 increasing from $9.20 to $10.70.
“We are unanimously against it,” said Trevor Benoit, President of the Cold Lake Chamber of Commerce.
“The feedback we have received in terms of the minimum wage increase is that it wasn't well thought out. Trying to put a blanket policy that covers the best interests of business owners, employees and everyone in the province is very hard to do. I think it was a rushed decision.”
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 the 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.
Benoit is weary of the planned increased to $15 per hour, feeling that it is going to cause jobs to be lost in the region.
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.
“There will be less jobs because overhead is going to be up and you can only pass on so much to the consumers,” said Benoit, who also feels that it is going to really hurt the new inexperienced residents trying to enter the workforce.
“If (businesses) have to eventually pay $15 an hour they are going to hire an experienced person rather than even thinking about hiring a student,” said Benoit. “It is going to hurt the workforce, especially the new budding workforce, rather than helping in any way.”
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.”
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 the 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.
