These Halifax Business Leaders Support $12.95 Minimum Wage
HALIFAX – One may think that due to the severe economic fallout of Covid-19, business leaders in Halifax would be fighting against the province’s plan to raise the minimum wage by $0.30 on April 1, making the wage $12.95 per hour.
But, it turns out quite the opposite is true, as many prominent members of the business community say they understand the need for an increase in wages, and some are even applauding how the new minimum wage is being rolled out.
Bill Pratt, the owner of the Chef Inspired restaurant company, says he is glad the minimum wage is going up slowly, so businesses can adjust their prices. He points to what Ontario did three years ago, jumping the minimum wage from $11.60 to $14.00 an hour as a bad way to increase it.
“I agree with a minimum wage increase,” said Pratt. “Yes, it’s bad timing. But, as long as it’s small and gradual, so we can raise our menu prices with it, so it’s commensurate together, it’s much better than what they did in Ontario, jumping from $11 to $14. You can’t raise your prices 20 percent- it will scare people away.”
“So as much as I hate it as a business owner at this time right now, I do have to agree with good minimum wage increases that are moderate.”
Pratt hasn’t calculated yet how much the increase to the minimum wage will cost him. He says he tries to stay ahead of the minimum wage with his employee salaries, so he plans to bring his average wages up to $13.50 per hour.
Patrick Sullivan, President of the Halifax Chamber of Commerce says the business community recognizes that the pandemic has been difficult on low-wage workers as it has on small businesses.
“For people who are in food and accommodation, this is an exceptionally difficult time,” said Sullivan. “In the minimum wage category there has been a lot of job losses in the last 12 months.”
According to Sullivan, 48 per cent of minimum wage workers are employed in retail and 25 per cent are in the food and accommodation industry.
“I think it’s always a worry for small businesses that employ minimum wage staff,” said Sullivan. “The good thing about what the province is doing now, is there’s lots of warning that this is coming.”
“So, with the process the way it is now, people know it’s coming well in advance. They can plan for it and budget for it.”
The restaurant industry will likely face challenges with the extra costs of the minimum wage. Right now, eight of 10 restaurants are either losing money or barely breaking even. Luc Erjavec of Restaurants Canada, however, believes restaurateurs will get by, despite these hard times.
“Are our operators looking forward to getting a wage increase? No, it’s not something that they are really happy with, but they understand it and they had expected it,” said Erjavec. “I think it’s something we can live with and manage.”
“Having it tied to an economic indicator is something we’ve always supported, and I think it’s a balanced approach.”
Everyone seems to agree that the increase to minimum wage will be felt, ultimately, by customers.
“When costs go up (for businesses) the costs to customers definitely goes up. It’s a little bit skewed right now with the wage subsidy, but customers will ultimately pay more,” said Erjavec.
“Typically, these costs are always passed on to the consumer,” added Sullivan. “So, we shouldn’t be under any illusion who’s going to pay the bills. But, having said that, people do need an increase.”