B.C.’s minimum wage is going up by 50 cents on September 15, 2017 as part of a plan to hit $15 per hour by 2021.
The announcement was made on Tuesday this week.
“British Columbia’s lowest-paid workers need a raise,” Premier John Horgan said. “The action we’re taking will make life better for working parents, seniors, new Canadians, students and more - these are people struggling to get by.”
Labour Minister Harry Bains said details around a fair wages commission’s composition and terms of reference will be announced in the coming weeks, but that its overarching objective is to get British Columbia to $15 along a planned, responsible path. The commission will submit its first report within 90 days of its first meeting.
“We’ve listened to business owners, who have told us gradual, predictable increases are the way to go to minimize the impact on their businesses,” Bains said. “And they recognize that the move to a $15 minimum wage is good for retention for their businesses, and good for the B.C. economy.”
Kimberley Mayor Don McCormick says it’s a substantial policy change and he worries that too much consideration has been given to cost of living in the Lower Mainland, and not enough thought to small business in rural B.C.
“What’s good for one is not necessarily good for the other,” he said, adding that he feels it’s going to be a hardship for small business in Kimberley.
“Small business has to absorb that increase and the only way to do that is with price increases. And then you have to ask, can your clientele afford those increases? If the answer is no, that small business is going out of business. And then there are no jobs.”
McCormick says that the national average is only 14 per cent of jobs are minimum wage and that points to the fact that businesses that can afford to pay more already do.
“Minimum wage jobs are usually in the service industry and that means communities like Kimberley will feel disproportionate pressure from this increase.
“And it’s not just an increase in minimum wage, it’s also the cost of CPP and other benefits, which will go up. So it’s more than just a dollar an hour per year. The average person will say, oh it’s just a buck an hour, but it’s much more.”
Kimberley Chamber Manager Mike Guarnery says the Chamber will put out a survey to find out how many businesses in town have minimum wage as a baseline for employees. It will then be easier to say with confidence whether is minimal or significant impact from the wage hike.
Guarnery says the 50 cent increase by September was not unexpected, considering the NDP was consistent in their message during the election campaign about the change, but getting to $15 per hour so quickly does raise some concerns.
“The timetable to increase the minimum wage to $15 an hour by 2021 is concerning as it raises the minimum wage by $3 an hour over the next three and a half years. This will also inflate the source deductions that business owners pay per employee – that may be significant to Kimberley’s business community. We will support the government’s effort to identify off-setting tax reduction initiatives for businesses (especially in rural areas outside the Lower Mainland) to allow small and medium businesses to plan for this substantial increase in wages, as well as welcome a re-evaluation of the timetable for this increase.
“It’s our goal to ensure businesses growth continues in Kimberley, and we will work with our membership to find avenues to manage this increase to their bottom-line. Minister Bain’s comments that “It’s incremental” and “businesses owners can identify what their costs will be” is not always an adaptable principle in small-city economics. We will need to know when the $15 an hour increase is met what is the next plan? For example, does it attach to BC’s CPI after meeting the $15 an hour plateau as done in past BC administrations?
“Kimberley is known for its ability to manage change, and this will be another example of how our small business community will continue to grow, support their employees, and provide excellent products and service to their customers. It’s the Chamber’s role to ensure these businesses are aware of the tools and business support available to them, and provide advocacy for them at all levels of government.”