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CAN'T FIND SOMETHING? |
Business in Vancouver December 18-24, 2007; issue 947 Minimum wage issue generates vigorous debate in local business community BIV-Ipsos survey finds clear divide over proposal to raise hourly rate to $10 Andrew Petrozzi BC’s business leaders are of two minds when it comes to raising the provincial minimum wage to $10 from $8, according to the latest BIV-Ipsos Reid poll. Fifty-three per cent supported the raise; 37% opposed it. “It’s unusual for business owners and business decision makers to be so divided at quite opposite ends of the spectrum,” said Steve Mossop, president, western region, North America, for Ipsos. More female than male respondents supported increasing the minimum wage to $10: 76.1% versus 43.3%. In both sexes, support was highest among those 55-years-old and older. Support was weakest among those aged 45 to 54. As factors supporting an increased minimum wage, respondents overwhelmingly pointed to: •B.C.’s rising cost of living (88%); and •no increase in the minimum wage in the past six years (73%). More than half also highlighted financial problems experienced by many minimum wager earners (59%) and that B.C.’s minimum wage workers earn less than Canada’s low income cut-off (LICO) measure as signs that an increase is needed. But minimum wage increase opponents almost all base their view on a wide range of reasons, including: •government should instead offer tax relief to transfer money to low wage earners (40%); •B.C.’s minimum wage is comparable to other provinces (37%); •raising the minimum wage could increase unemployment (38%); •the minimum wage ($8) is high enough (34%); •there are better ways to assist people with low wages, including subsidizing rents and medical service premiums (33%); and •working for minimum wage is only temporary – most stay at the minimum wage for less than a year (37%). As well, 33% of respondents indicated there were other reasons to oppose the increase. As to what respondents said the minimum wage rate should be: •between $8 and $8.99 (31%); •between $9 and $9.99 (22%); •between $10 and $10.99 (30%); •more than $11 per hour (8%); and •no minimum wage or that it should be less than $8 (7%). Mossop believes the wide majority that envisions the minimum wage ranging between $8 and $11 an hour represents a concession on a difficult issue. “Opinions are divided, so why don’t we concede and give something that makes everybody happy. It’s not as though people are saying it should be $20 an hour. They’re saying do something responsible.” One solution is indexing B.C.’s minimum wage to reflect the cost of living. Sixty per cent supported the proposal; 32% opposed it. The Yukon recently introduced such a measure. Starting April 1, 2008, the territory will increase its minimum wage annually by an amount corresponding to the annual increase for the preceding year in the consumer price index for the City of Whitehorse. And while almost two-thirds of the survey’s respondents (62%) said they didn’t know anyone who works for the minimum wage or $8 per hour, almost a third (32%) said they knew someone or that a member of their family worked for the minimum wage. Another 12% said they have hired workers at the minimum wage or work for a company that hires workers at that rate. “They’re not talking out of lack of knowledge on the issue,” said Mossop of poll respondents.” And while 76% indicated they have worked for less than $10 per hour, Mossop accepts that for some, it may have been a long time ago. “But they weren’t always well off, and they do have some perspective.” Mossop pointed out that even in the extreme segments of the survey group, such as the very wealthy and well-educated and the self-employed, there is an acknowledgment the minimum wage should be increased. “When you look at the overall poll results, traditionally speaking, you would expect that business leaders would be opposed to increases in minimum wage,” he said. “The fact that we have 53% who are supportive for a group that traditionally is opposed to it suggests that maybe now is the time.” The BIV-Ipsos Interactive Panel is an online forum for business people to register their views on critical issues related to doing business in B.C. To join, visit www.biv.com. • apetrozzi@biv.com |
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