With minimum wage on the rise, low-income workers in Alberta are going to feel both positive and negative side effects.
With the latest increase coming into effect on Oct. 1, 2017, minimum wage in Alberta now sits at $13.60 per hour. This represents the third phase in the NDP's rollout of a $15 per hour minimum wage, set to take effect Oct. 1, 2018.
Many local business owners are worried the higher starting point for labour costs will force them to cut employee hours.
“Businesses are struggling to make ends meet, I can imagine this impacting them quite a bit. We've already seen that over the years. As it's crept-up, I think hours have been shorter for some businesses. They have adjusted for it but it's not for the positive,” said Julie Kissel, president of the Glendon and District Business Alliance.
Since the NDP implemented the plan to grow to a $15 per hour minimum wage, business owners have been voicing their displeasure with rising costs. They fear having to choose between cutting their employees time and raising the price of their product.
According to the Alberta Federation of Labour, while this is a common concern, it rarely plays out on a large scale.
“When minimum wage goes up, businesses always predict a massive job loss, but it never comes,” explained Gil McGowan, president of the Alberta Federation of Labour.
Despite business owners across Alberta sharing a different opinion, they can't deny over 292,000 Albertans who currently make minimum wage are about to have a few extra dollars in their pockets.
“All hard working people deserve to earn enough money to support themselves and their families. Our government is staying true to our commitment to make life better for those Albertans who earn the bare minimum,” said Minister of Labour Christina Gray in a press release.
Some residents agree with the province's stance, due to the increase in the cost of living.
“The cost of living has gone up insanely in our area in the last five to 10 years... but minimum wage, not so much,” local resident Alex Fugarchuk Fitch commented on the Nouvelle's Facebook.
Still, business owners are concerned the change could create a problem among youth looking for employment. The higher base rate will have employees looking to cut costs and raise their standards for hiring.
There will now be more competition for each position as owners look to put more responsibility on higher earning employees, in order to cut back on minimum wage workers.
“As a business owner, one of the questions I hear is, ‘If minimum wage is $15, and you have a 15-year-old and a 24-year-old apply, which one would you choose?' It's obvious who they're going to hire and that's a concern,” said James Richer, owner of the Bonnyville McDonald's.
Another major concern is the inevitable increase in the cost of living that will go along with it.
While low wage workers will have a bigger paycheque, that doesn't necessarily mean employees making more than minimum wage will see any difference in their wages.
“The person that gets impacted the most isn't at the business, it's the middle income person. They may not get a raise when minimum wage goes up, but everything around them will go up,” explained Richer.
After the initial adjustment period, the Alberta Federation of Labour expects the jump to be a boost to the economy in the long run.
Regardless of conflicting opinions, Alberta will see its minimum wage raised to $15 per hour on Oct. 1, 2018.
“Higher minimum wages reduces employee turnover and boosts morale. More importantly, the increases boost the purchasing power of low wage workers,” said McGowan. “Whenever the minimum wage increases, employers always say the sky is going to fall, but it never does.”
