Moncton Chamber Of Commerce Criticizes N.B. Minimum Wage Hike

MONCTON–Moncton’s business community is troubled, and worried for its members, following the Province of New Brunswick’s announcement of a $2 minimum wage hike over the coming year.

John Wishart criticized the province for not consulting businesses before it made the decision to raise the minimum wage from $11.75 an hour to $13.75.  Post-Secondary Education, Training and Labour Minister Trevor Holder announced the change Dec. 2.

“We started to hear rumors of a significant increase in the minimum wage just two days ago, so that really doesn’t leave any time for meaningful dialogue between businesses and government,” Wishart, the president of the Greater Moncton Chamber of Commerce, said in a call with Huddle.

Wishart said the timing couldn’t be worse for a planned bump in the minimum wage. He said small- and medium-sized businesses are still reeling from the pandemic and struggling to recover in the face of increasing labour costs.

“This is really going to hurt them. I’m thinking restaurants, bars, and the hospitality industry in particular,” said Wishart.

“Where is the support for the SME (small and medium enterprise) sector? New Brunswick has not been leading the pack in terms of financial assistance to the SME sector through Covid.”

Wishart noted the chamber recognizes that with the lowest minimum wage in Canada, New Brunswick’s situation was unsustainable.

“Everyone deserves a decent wage, but I think we need to be very careful, especially right now, when the economy is still, despite Minister Holder’s words, not quite as solid as we hoped it might be,” said Wishart.

He questioned if a planned bump to $13.75 will make much of a difference, especially since many chamber members are already paying well above that to accommodate pandemic-related labour challenges.

“Just to get someone through the door, (employers) are paying $14 to $15 an hour as a starting wage,” he said.

The Moncton chamber’s concerns were echoed by the Fredericton Chamber of Commerce, which criticized the lack of consultation.

Fredericton Chamber CEO Krista Ross said in a Dec. 2 release that the province’s decision defies the Employment Standards Act, which requires minimum wage reviews every two years and consultation with stakeholder groups.

“The government’s choice to deviate from an established process that allows for stakeholder groups to provide input is frustrating as the very reasons for the statutory review process is to provide government with the perspective needed to make knowledgeable decisions.”

While less than five percent of the province’s workforce makes minimum wage, Ross noted many of the places they work have already been harmed by the pandemic

Many Already Pay Above Minimum Wage

Ron Toogood, owner of the Coastal Inns chain in Greater Moncton, said the province’s plans don’t surprise him and won’t require him to change how he does business.

“I hadn’t heard an inkling at all that it was coming. I’m not surprised the government is doing something in that regard,” said Toogood.

Toogood said the decision will have a minimal impact on his hotel chain, as none of his employees have been paid minimum wage for quite some time.

“It’s been meaningless, quite frankly. You haven’t been able to hire anybody at minimum wage. The market would demand more,” Toogood said.

Toogood said his hiring practices have viewed $13 as more in line with what a minimum wage ought to look like. Also, since the pandemic, staffing shortages compelled Toogood to offer higher salaries to new hires.

“Hiring has become more difficult. As most businesses did, we reacted to it and upped our game in terms of what we offer prospective employees,” he said.

Toogood said he’d be more concerned about the rising minimum wage if he were a bar or restaurant owner, noting they have more staff at minimum-wage level, on account of tips and gratuities.

“They will face some upward pressure there, and that will impact their business model. I think, for the most part, for other employers, there’s been recognition for some time that you can’t hire and hold good people at the minimum wage New Brunswick had,” he said.

Some Praise For The Decision

The Moncton-based Common Front For Social Justice New Brunswick praised the decision, stating in a news release that the bump is “sorely needed.”

“The Common Front urges the government to go further than a ‘one-time correction.’ As an organization which works with and organizes low-wage workers and people in poverty, the front says the current minimum wage increase is still far behind a living wage,” said the release.

Front organizer Denis Boulet noted this is necessary because even with a $2 increase, the minimum wage is still $4 to $7 below what has been called a living wage in New Brunswick.

Sam Macdonald is a Huddle reporter in Moncton. Send him your feedback and story ideas: [email protected].