Restaurant forum urges minimum wage freeze
Business owners warn boost to $15 will see demise of many operations
Restaurant operators called on the provincial government Tuesday to slice and dice its “disastrous” plan to boost Alberta’s hourly minimum wage to $15 by 2018.
“I think this increase is going to be the death of a lot of (operations),” said Jill Johnson, co-owner of Atlantic Trap and Grill pubs in Edmonton and Calgary.
“I don’t have one server staff member who wants $15, because they know prices will go up, sales will go down and they will lose gratuities.”
The NDP government boosted the minimum wage to $11.20 an hour for most workers last October, or $10.70 for staff who serve liquor.
While it has vowed to uphold an election pledge to raise the minimum wage about 50 per cent over three years and eliminate the lower rate for servers, people at a forum run by Restaurants Canada argued such moves would be harmful in Alberta’s sluggish economy.
The organization launched a campaign two weeks ago asking the province to freeze the wage until the economy improves, maintain the server differential and create a new youth rate similar to Ontario, where students under age 18 earn 70 cents an hour less than the $11.25 paid to adults.
“We’re an industry that’s low margin, highly competitive and very labour intensive,” said Mark von Schellwitz, the group’s vice-president for Western Canada, citing survey results showing 61 per cent of Alberta members expect sales to drop in the last half of the year.
“Now is not the time to impose any more costs on us … We really can’t afford another large minimum-wage increase.”
Several speakers said servers already average $25 to $30 an hour with tips, and restaurants can’t afford to cover extra expense.
“Trying to raise your prices in this kind of economic climate is a disastrous policy. Everyone has less disposable income,” said Chase Sereda, who runs a string of restaurants that includes Little Caesar’s pizza outlets.
But not all restaurateurs agree. Mark Bellows, co-owner of The Local Omnivore, said he and his partner have paid themselves and their five staff $15 an hour since opening last December.
The move has allowed them to hire better workers who provide better service and prepare better food, he said.
It’s also good for the Edmonton community, he said.
“As a business owner, you’re going to have to decide if you’re going to encourage the growth of society, or be a pariah and vampire the life out of society.”
The province has been holding consultations on the issue since May with business, labour groups, workers and social agencies.
That process will wrap up by the end of June.
Labour Minister Christina Gray said the government still plans to implement a $15 minimum wage by 2018, but hasn’t made a firm decision on eliminating the liquor server differential this year.
While she plans to discuss with her colleagues the proposal for a youth wage, “all employees irrespective of age and experience are valuable in the workplace,” she said following a Hinton meeting with low wage earners.
Past increases have happened in October, but Gray would only say people will receive three months’ notice of any changes.
“The key thought in all of this is work should pay enough to support families. Right now, too many people are going to work … and having to make the choice between rent and food, or rent and transportation.”
Now is not the time to impose any more costs on us … We really can’t afford another large minimumwage increase.