A local business group is worried that BC’s upcoming minimum wage increases could slow job creation in Powell River.
Premier Christy Clark and Shirley Bond, minister of jobs, tourism and skills training, recently announced that the province plans to raise BC’s minimum wage by 40 cents in September, followed by another 40-cent increase in September 2017.
Powell River Chamber of Commerce vice-president Cory Carr said the group, which represents small business owners, is concerned the increases are more than expected and could have consequences on small businesses creating new jobs.
“When you look at the economics of an increase, the detrimental effects are often larger than the positive impacts,” said Carr. He added that increased labour costs to business owners will “discourage the creation of new jobs.”
Clark stated during the announcement that raising the minimum wage would bring the province out of last place in the country for the lowest minimum rate and match the province’s economic growth.
“We’re leading Canada and targeted to grow at twice the national average,” stated Clark.
The 40-cent increase will raise minimum wages to $10.85. Since 2006, the provincial minimum wage has risen 40 per cent. September’s increase is the first time the provincial government has based its increases on BC’s Consumer Price Index (CPI); the new rate includes 10 cents scheduled for the CPI in 2015, plus an additional 30 cents.
Carr said the chamber recognizes BC has to raise the rate to keep pace. “We never want to be last in the country, especially in a province where goods and services are more expensive than the national average,” he said. “Minimum wage should reflect where we are in terms of other provinces.”
Ontario has the highest minimum wage in the country at $11.25. BC Federation of Labour has been calling for the province to increase the rate to $15 an hour immediately.
In a media release, federation president Irene Lanzinger stated the federation was disappointed the government had not taken “the steps necessary to lift a person working full time above the poverty line.”
Clark announced the next increase, up to $11.25, would happen one year later on September 17, 2017. She also announced the small-business tax rate would drop from 2.5 per cent to 1.5 per cent.
