MINIMUM WAGE CUT?
Alcohol servers target of study
Alberta’s UCP government announced Thursday it is creating an “expert panel” to assess the option of lowering the minimum wage for hospitality industry workers who serve alcohol.
The panel will also publish data on recent minimum-wage changes, according to Labour and Immigration Minister Jason Copping.
“Alberta currently has the highest minimum wage in the country and too many hard-working Albertans are struggling to find work,” Copping said during a news conference on Thursday.
Alberta’s minimum wage rose gradually from $10.20 in 2015 to $15 per hour last fall under the previous NDP government. It stated the intent was to help reduce poverty and lessen the burden on social-support programs.
But Copping said the effects of the NDP’S decision “were not very well studied or understood.”
“Certain studies have said when you increase the minimum wage, especially so far and so fast like the amount that was done under the previous government, you have negative impacts in terms of reducing job opportunities, particularly for those who need it the most,” he said.
Chaired by Joseph Marchand, associate professor of economics at University of Alberta, the panel also includes:
Anindya Sen, professor of economics at the University of Waterloo; Mark von Schellwitz, vice-president (Western Canada), Restaurants Canada; Richard Truscott, vice-president, British Columbia and Alberta, Canadian Federation of Independent Business; Jason Stanton, owner, Running Room; Branko Culo, owner of Express Employment and member of Alberta Enterprise Group; Delphine Borger and Nicole Lyckama, servers, Blink Restaurant (Calgary); Rachel Donnelly, server, Chop Steakhouse.
Copping called it a “diverse group of people,” who will provide perspectives on minimum wage “based on their experience and expertise.”
“It was important to us that we actually have a blend of people to represent all these different groups,” he said.
But when asked whether any members of the panel are current minimum-wage earners, Copping replied, “I can’t answer that question.”
He said members of the panel are providing their time free of charge. They will produce a report on the effect of recent minimum-wage changes, along with recommendations for alcohol servers, by mid-january 2020.
Copping said the UCP government planned to maintain the general $15 per hour minimum wage.
Christina Gray, the NDP’S Opposition critic for labour and immigration, called the purpose of the panel “misguided” and its makeup “stacked against workers.”
“This panel doesn’t appear to be engaging in consultation, doesn’t include server advocacy organizations … and I’m concerned that this government has already made their mind up about wanting to reduce the minimum wage for liquor servers, an idea that has been rejected in numerous jurisdictions,” Gray said.
Lowering the wage of servers would disproportionately affect young workers and women, Gray said, adding that most liquor servers in Canada are female.
While in government, the NDP said it sought to move closer to a living wage, or what workers need to earn to cover the costs of living in a specific community, including basic needs such as food, housing and transportation.
In Calgary, that baseline is around $18 per hour, according to Living Wage Canada.
But Marchand said his analysis of the NDP’S wage hike predicted as many as 25,000 job losses across the province. He said his panel would determine whether a server wage differential could lead to higher net incomes for workers.
The panel is interested in outcomes related to employment, hours worked and earnings. Other outcomes such as poverty and inequality may also be evaluated, Marchand said.
Gray disputed the notion that minimum-wage increases under the NDP were responsible for job losses in Alberta, instead pointing to a bad economy overall.
“This fearmongering is out of line with the latest economic research,” said Gray. “The premier needs to stop hiding behind panels with predetermined outcomes to justify taking money out of Albertans’ pockets and cutting services.”
Daniel Huber, who founded the Alberta Vanguard Association, an organization that advocates for service- and hospitality-sector workers, said he was concerned that the industry wouldn’t have enough of a voice in the debate.
“I think the UCP is insulting everyone’s intelligence by stacking a panel with people that are their donors and their friends,” said Huber, an Edmonton chef.
Rolling back the server minimum wage could cost full-time workers thousands in income each year, he said.
“Half that list hasn’t even worked in the industry, so the idea that they are sitting down and making major decisions that are going to affect generations of Albertans about their wage … should be pissing more people off,” said Huber.
In May, the UCP government introduced legislation that cut the minimum wage for students under 18. The youth wage, which took effect in late June, was set at $13 per hour.
Premier Jason Kenney touted the change as one of many steps his government would take to address unemployment in Alberta, calling it a “common sense” approach that would allow businesses to hire more young workers.