Wage hike hurting: Biz groups
MINIMUM PAY: But for employees, boost is ‘pretty good news’
With B.C.’S minimum wage currently at $10.25 an hour — the highest in Canada — some industry leaders are saying, “Enough.”
Small-business owners are already feeling the pinch of the most recent wage hike, which came into effect Tuesday.
“It’s a big increase from what it was, and so suddenly,” said Shir BenSchlomo, owner of Trees Organic Coffee in Gastown. “It’s a big shock to the system.”
Ben-schlomo said the higher labour cost means she is now more cautious as to who she hires, preferring employees with experience instead of an entry-level worker.
“The notion it is bad for the community is upside-down thinking.” — Jim Sinclair
The wage increase also means customers might have to pay more for a cup of joe.
“We’re taking a wait-and-see attitude,” she said. “We’ll see how it goes whether we have to increase prices.”
B.C.’S three-phased increase saw the minimum wage go from $8 an hour last year to $10.25 an hour, starting Tuesday. Liquor servers’ base pay increased to $9 an hour.
Shachi Kurl, B.C. director of the Canadian Federation of Independent Business, said small-business owners have come to accept the increase — which now puts B.C.’S minimum wage at par with Ontario’s and highest in Canada.
“It is an additional cost for the employers, and that money has to come from somewhere,” said Kurl, noting that owners can only raise prices to a certain point.
“Often what you will see are employers making difficult choices, cutting back on hours or the money comes out from their profit margins.”
Ian Tostenson, president of the B.C. Restaurant and Foodservices Association, said restaurant owners have been forced to cut hours or hire fewer people.
“The initial feeling is that it’s too much, too fast,” he said. “It’s a big increase in a year in a market that’s showing little growth.”
But B.C. Federation of Labour head Jim Sinclair believes $10.25 is not enough, and is pressing for a November increase to $11.25 — an amount he said is the low-income cutoff for a single person in Metro Vancouver — and an annual review that could see smaller hikes in future years.
Sinclair said businesses have coped with the wage increase — the first in B.C. in a decade.
“The sky did not fall,” said Sinclair. “In fact, people had money in their pockets and spent it immediately in the local community. The notion it is bad for the community is upsidedown thinking.”
For Jessica Raj, a barista at Trees Coffee, knowing she’ll have a bit more money in her next paycheque is “pretty good news.”
“At the same time, the price of everything else is going up,” said the 19-year-old Simon Fraser University student. “But it still makes a difference.”