Workers at the lowest end of the wage spectrum will have a little more cash in their pockets this week as sa国际传媒鈥檚 minimum wage increases today to $15.20 an hour.
The increase from $14.60 an hour is the final step in a four-year government pledge to raise the minimum wage from $11.35 an hour to at least $15 an hour by June 2021.
鈥淎s of tomorrow, we will have achieved and surpassed that goal, making sure workers who need regular and fair wage increases are getting them,鈥� Labour Minister Harry Bains said Monday.
The new minimum, the highest in sa国际传媒, is expected to affect 250,000 workers and includes an increase of $1.25 an hour for liquor servers, who had been getting a minimum of $13.95 an hour.
Advocates for a living wage called it a good start, and some business owners warned that prices will have to increase to absorb the cost.
鈥淚t will be tough, no doubt about it,鈥� said Rob Chyzowski, owner of Bellevilles Watering Hole and Diner, noting many of his servers have been getting the $13.95 wage, though he has been paying kitchen staff and others well above minimum wage for years.
Chyzowski said with as many as 90 employees, he could be looking at the monthly wage bill increasing by more than $7,500.
鈥淚t鈥檚 significant and how do you get that money back?鈥� he asked. 鈥淲e just re-opened indoor dining, and we鈥檙e still at just 50 per cent capacity.鈥�
Ian Tostenson, chief executive of the sa国际传媒 Restaurant and Foodservices Association said the cost pressure of a higher minimum wage adds to increased overhead costs, food costs and safety equipment.
鈥淭his [increase] will just get baked into pricing, invariably we will see prices go up in restaurants to cover this,鈥� he said. 鈥淭here are some who will say this shouldn鈥檛 be happening now [while we鈥檙e in a pandemic] but others will say they had already baked this into their business models 鈥� it鈥檚 been four years in the making and everyone was aware it was coming.鈥�
Mike Murphy, owner of the 10 Acres Group, which owns restaurants in downtown Victoria and Sidney, said the increase shouldn鈥檛 surprise anyone. 鈥淭ake a look around, everything is more expensive than it was eight months ago,鈥� he said. 鈥淭here鈥檚 no question prices will go up across the board.鈥�
It won鈥檛 change his bottom line much, he said, noting they haven鈥檛 had anyone making less than $20 an hour in their kitchens for more than four years.
鈥淎 few years ago we put an ad in for a dishwasher at $20 and didn鈥檛 get an application,鈥� he said. 鈥淎nd I鈥檓 in full agreement with our staff being paid that, they deserve to get paid that, they are great and work harder than a lot of people do making more than that.鈥�
Annie Dormuth, provincial affairs director of the Canadian Federation of Independent Business, said the impact will be felt beyond the hospitality industry, also affecting convenience stores, retailers and family businesses. 鈥淔or any small business, taking on added cost increases [in a pandemic] will be difficult,鈥� she said, noting only 40 per cent of sa国际传媒 small business report 颅having normal sales figures.
She said even though the increases were mapped out, no business could have planned to have 18 months of a pandemic. 鈥淲e would have liked to see government hit the pause button on the increase or perhaps reduce or offset costs.鈥�
For those receiving the increase it could be a game changer.
鈥淭he minimum wage going up makes a huge difference for my family and my co-workers,鈥� said Alfiya Ishak, who works as a cleaner. 鈥淓very year things go up in cost: groceries, bills and the rent. If the minimum wage doesn鈥檛 increase, how are we supposed to survive?鈥�
Erica Jones, who works in the grocery business, said it will make it easier for people to pay their rent and other bills. 鈥淚t is a step in the right direction but only one tool in the kit to bring people out of poverty,鈥� she said. 鈥淧eople who make the minimum wage work as hard as anyone else.鈥�
Anastasia French, organizer with the Living Wage for Families Campaign noted the $15.20 rate is still $4 below the estimated cost of living in Victoria. 鈥淲e鈥檝e seen during the pandemic that it is low-wage workers who are on the front line 鈥� keeping us fed, keeping us cared for, and keeping us safe. At the very least, they need to be earning a living wage,鈥� she said.
sa国际传媒 Green Party Leader Sonia Furstenau noted the province has the highest cost of living and the highest levels of wealth inequality in sa国际传媒. 鈥淎 strong economy is one where everyone can meet their basic needs and live healthy and fulfilling lives,鈥� she said.
Greater Victoria Chamber chief executive Bruce Williams said in order to attract and retain workers, employers in Victoria have already had to be competitive with wages. 鈥淭his is great news for those people making the minimum, but many businesses are facing a difficult road ahead,鈥� he said. 鈥淚deally, the government would hold off on adding any extra costs to businesses in the hospitality and tourism industry until they have a chance to get back on their feet.鈥�
