Lauren Boothby
VICTORIA NEWS
Local business owners are conflicted on B.C.鈥檚 minimum wage hike.
Next month the increase begins in stages as part of a plan to hit $15 per hour by 2021. NDP Labour Minister Harry Bains said the rate will go up by 50 cents, to $11.35 an hour, in September. Liquor servers鈥� wage will rise by the same amount to $10.10 per hour.
Kathryn Genereux, who owns Inspire Hair Design on Blanshard Street, thinks the change is positive, although her employees are already paid over the current minimum wage and won鈥檛 be affected. However, she can understand how difficult it is for other local businesses.
鈥淚t is hard to be a small business. We don鈥檛 have a lot of the (tax) breaks people think,鈥� she said. 鈥淚t is hard to pay a substantial wage and make money, so I understand it is difficult. However as an owner you want your staff, your team, to thrive and they can鈥檛 thrive off minimum.鈥�
Andrew Millen is one of the owners of Oscar & Libby鈥檚 on Fort Street. He said there are pros and cons to the change and he can understand both sides.
He said 2021 seems like a long-way off and a reasonable time frame.
鈥淥ne thing that crosses my mind is, if your new, inexperienced worker [is hired] at $15 an hour, and then your more veteran worker (is) making a little bit more than that, it鈥檚 going to bump everyone up,鈥� he said.
鈥淚t鈥檚 going to drive the cost of doing business up, so cost of merchandise is going to go up to some degree.鈥�
But he also understands that for those making the current wage, the cost of living is high. 鈥淚t seems fair that way.鈥�
The previous BC Liberal government to boost the minimum wage by 50 cents in February, but Bains panned what he called their slow and unpredictable effort.
鈥淲e will give it a legal effect so that it will be implemented Sept. 15,鈥� said Bains.
The rate will go up by 鈥渋ncremental and predictable increases,鈥� he told reporters, with a 鈥渞esponsible, fair approach.鈥�
B.C.鈥檚 minimum wage is currently the seventh highest rate out of 10 in Canada. The jump to $11.35 will put it at the third highest. Seattle has also promised to increase its minimum wage to $15.
RELATED:
The province will also start a fair wage commission to help employers prepare, he said, and help minimize the impact on small businesses.
鈥淭hey can actually look at their structure and costs ahead of time,鈥� Bains said. 鈥淲orkers will have a few dollars more in their pockets and they will 鈥� boost our economy.鈥�
The commission will explore how to settle the discrepancy between the proposed minimum wage and what is called the living wage, or what a family of four needs to earn to cover their basic expenses. The latter differs across the province, ranging from $17/hr mid-Vancouver Island to more than $20/hr in Vancouver.
BC Federation of Labour president Irene Lanzinger said she鈥檇 like to see the gap between the minimum and liveable wage shrink.
鈥淭hat is a discussion to be had after we get to $15,鈥� she said. 鈥淚鈥檓 not in favour of $15 for some and $14 for others because $15 gets you just above the poverty line.鈥�
She added she was pleased with the NDP鈥檚 announcement, though she wished the changes were happening faster.
Meanwhile, the head of Surrey Board of Trade said the increase won鈥檛 be easy for small business owners.
RELATED:
鈥淲e were originally advocates of a minimum wage increase when the Liberals were in power because we鈥檙e the lowest minimum wage in Canada as a province and we have the highest child poverty rate in Canada,鈥� Anita Huberman said.
鈥淲e were, as a business organization, very different, supporting a minimum wage increase. But the move towards a $15 minimum wage, small business has to prepare now.鈥�
For more on this issue, visit vicnews.com.
鈥� with files from Tom Fletcher
