BC’s minimum wage will spike to $17.40 per hour from this Saturday, June 1st, a 3.9 per cent increase from the current minimum wage of $16.75 set last June.
So, what does this mean for local businesses?
BC Chamber of Commerce Director Tanya Finley says while the intent of the wage increase is to lift people out of poverty, it will come with negative implications.
Finley has served as the representative for the Kootenay Region on the BC Chamber of Commerce for six years,
“We are seeing a rippling effect across the province of more and more poverty. These things that we think work don’t, and we need to teach people how to budget and be more accountable and more effective financially.”
Finley said that locally, the food and beverage industry will feel the wage increase the most.
In April, the Federal Government imposed another 2 per cent tax increase on alcohol sales, as well as the increase to the federal carbon tax. Finley fears the combined increases will force local businesses to cut jobs or potentially close their doors.
“The food and beverage industry has been hit the hardest over the last four years. Businesses will cut jobs, increase prices, and I also think we will see businesses close. I’m quite certain of it across the province because of this decision.”
Finley says the Chamber has recommended a variety of policy changes to help BC residents adjust to the high cost of living and inflation while still benefiting business owners.
“The BC Chamber is working very hard to help and build policies. I think we need to be looking at the taxation piece. I think we need to look at insurance. I think we need to look at all these things where the costs are continually increasing and having those conversations.”
The impact of the wage increase will be felt by consumers as well, according to Finley, who said some local small businesses are considering implementing a credit/debit card fee to try and gain revenue.
“We have looked at possibly charging for credit card fees and going back to cash to try and save on credit card charges that the businesses are paying and putting it back on the customer.”
She doesn’t think minimum wage workers should be making an unlivable wage but said there needs to be balance, stating that increasing wages annually to be in line with inflation has the opposite of its intended effect.
“Raising the minimum wage is the most ineffective way to reduce poverty and the government should know this by now. I’m not saying someone should make $10 an hour. That’s not what we’re saying here. Over 10 years, minimum wage has gone up by 70 per cent and we are still seeing more and more poverty.”
