Wednesday, March 16, 2011

B.C. Minimum Wage Increases To $10.25

A Shot From The Hip?
Or Well Thought Out?
B.C.'s new Premier, Christy Clark wasted no time in bringing forward a campaign promise to increase the minimum wage. She has announced increasing it to $8.75 on May 1, 2011 and bring in another increase in Nov. 2011 to $9.50 and finally on May 1, 2012 to $10.25 / hr.
The training wage is also being eliminated and there will be a new wage for workers in the liquor industry.
Current Minimum Wages Across Canada

Jurisdiction Rate $/hr
Alberta $8.80
British Columbia $8.00
Manitoba $9.00
New Brunswick $8.25
Newfoundland & Labrador $9.00
Northwest Territories $8.25
Nova Scotia $8.60
Nunavut $10.00
Ontario $9.50
Prince Edward Island $8.40
Quebec $9.00
Saskatchewan $9.25
Yukon $8.89

Comment: I'm going out on a limb here, but I think I can already hear the business choir warming up right now. If the new wage for liquor workers adds much more to the already reeling hospitality industry you can look for even more establishments to close in the near future. A large number of restaurants have already closed in large part to the stiffer impaired driving rules.So, where is the studied rationale behind this decision of the unelected Premier of the Province? Campaign promises are one thing, but I wonder what kind of an impact study she has carefully considered before this announcement? Business won't absorb the increase, they will simply pass it along to the consumer, those who can't will likely just close up shop.
Will the elimination of the training wage mean that some employers will no longer consider hiring a worker with no experience? The fact is, many first time workers are actually a liability during their training period rather than an asset.


1 comment:

  1. As a Bachelor of Hospitality Management and having read many case studies surrounding labour relations i have strong opinions about this particular comment.

    Although it is true that the hospitality industry is now facing a downward trend, I feel that a wage increase is long overdue for the province of BC. Within the last 10 years BC has gone from the highest minimum wage to the lowest. in the last 10 years the cost of living has dramatically increased making the current minimum wage more difficult for the average person to survive on. what many buisnesses are failing to recognize is that an increase in the minimum wage may actually help small buisnesses as people will be earning more they will also be able to spend more. (basic economics-supply and demand) The Smart buisnesses will realize this and will try to make their buisnesses more appealing to customers and in return customers will be more receptive to marketing ploys.

    Also, the "training wage" was one of the most rediculous and unfair labour laws that was ever created and I am glad to see it go. All employees should be viewed as a companies greatest asset not a liability. Employees are smart and will recognize this and may even provide more loyalty to there employers when they finally start to feel like they are being respected...

    All in all I feel that this was a very positive first move by Christy Clark and that people need to calm down and realize that this is the best option for BC residents at this point in time. The Benifits will outwiegh any of the negetive effects.


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