B.C.’s minimum wage hike risks harming struggling parts of the province, BC Chamber of Commerce president and CEO John Winter said.
“In areas in the Cariboo where economic activity is almost at a standstill, you’re going to see businesses close,” he said. “In parts of the Lower Mainland, where business is booming, there may be no effect because businesses require seasonal or part-time help, just because the customer base is there.”
Premier Christy Clark announced yesterday that B.C.’s hourly minimum wage will rise to $10.25 in 2012 from the current $8. The wage increases will be phased in, rising to $8.75 May 1, 2011, $9.50 November 1 and $10.25 May 1, 2012.
Under the new rules, liquor servers’ hourly wages will rise by somewhat less: to $8.50 May 1 this year, $8.75 November 1 and $9 May 1, 2012.
The new minimum wage rules also repeal the training wage as of May 1, eliminating a system that allows employers to pay first-time workers $6 per hour for the first 500 hours of employment.
Winter applauded the differential wage for liquor servers, which he said has succeeded in Ontario. And some parts of the rules, he said, reflect the input the chamber gave during a consultation phase.
“We said if $10 is your target, then at least give employers a plan, give them some time to accommodate the increases and recognize that a tighter time frame could have a negative impact on the people its intended to help, reducing hours of work and even reducing the size of the workforce,” he said.
But Winter added that while some of that advice was incorporated into the rules, he questioned the size of the wage hike and the time period for implementation.
“It kind of reflects what we had said to the consulting folks, with the notable exception that it’s an awful lot of money in a very short time frame.”