British Columbians, who were trying to survive on an $8 minimum wage, received some welcome news March 16 when Premier Christy Clark announced the entry-level wage would increase to $10.25 by May 1, 2012.
The increase will come in three 75-cent increments starting on May 1, 2011. On that date, the training wage will be eliminated and all hourly-paid workers will be eligible for $8.75 an hour, regardless of their work experience.
“Raising the minimum wage and eliminating the training wage is a fair and reasonable step forward in putting families first and building our economy,” Clark said.
“This increase could mean more than $4,000 [extra] annually for a full-time employee, providing more support to B.C. workers and the families who depend on them.”
Noting businesses told the B.C. Liberal government they needed time to adjust to increases in the minimum wage, the premier said cabinet was able to provide that certainty through three predictable stages.
The next incremental increase will see the minimum wage move to $9.50 on Nov. 1, 2011.
Meanwhile, a special minimum wage for liquor servers will also be phased in.
It will go to $8.50 on May 1 and $8.75 on Nov. 11, and finally, $9 on May 1, 2012.
It is modelled on what Ontario businesses pay employees who serve liquor directly to customers or guests in licensed premises as a regular part of their work. Premier Clark noted people who serve alcohol for a living often make more with their tips than they do with their wages.
Meanwhile, the NDP and the BC Federation of Labour (BCFL) had been pushing for an immediate increase to $10 an hour.
Following the announcement, BCFL president Jim Sinclair said the $8.75 rate was a poor start, and he voiced disappointment the B.C. Liberals were introducing a tip wage for liquor servers.
In February, the Canadian Federation of Independent Business had predicted that increasing the minimum wage would cost between 11,770 and 42,700 job in B.C., with the hospitality sector hit the hardest.
The British Columbia Chamber of Commerce voiced concern about the speed of the increase.
“The announced raise for the minimum wage is an increase of 20 per cent in just over a year,” said BC Chamber of Commerce president and CEO John Winter.
“That is a significant increase in operating costs for businesses to take on in such a short time, and some regions will be more negatively impacted than others.”
For her part, Cariboo-Chilcotin MLA Donna Barnett said Monday she has mixed feelings about the increased minimum wage.
“I know people have been asking for an increase in the minimum wage for a long time and it has been 10 years since the last increase, and B.C. is the lowest in Canada.”
However, Barnett noted some of the restaurant owners are upset because they already pay $8 to $9 an hour and their servers are making good tips.
“So, it’s good for families, but for some businesses, it’s going to be a little tough and I feel bad for them. But, these are decisions that have to be made.”
If the economy is vibrant, nobody cares, she added, but when the economy is tough, it’s hard on business owners because they have so many other fixed costs to deal with just to stay in business.
Barnett said the decision made by cabinet came after a long period of consultation with chambers of commerce, businesses and other groups.
“So, while I’m really happy for families, I know it’s going to be tough for business. Hopefully, the gradual increase will help reduce the pain.”
