
The President of the Kamloops Chamber of Commerce says there is a call from the business community to delay the planned minimum wage increase as we all try to recover from the COVID-19 global pandemic.
Last week, B.C. Finance Minister Carole James said minimum wage will go up as scheduled on June 1, despite the pandemic and the economic issues that have come with it. The increase will raise minimum wage from $13.85 per hour to $14.60 per hour.
Speaking on The Jeff Andreas Show Tyson Andrykew says a major factor driving that concern is the probability of a slow recovery along with the likelihood that consumers will have less of an ability to afford the services provided. “With everyone being laid off and struggling during these times, there’s just going to be a really tough time to get back on our feet as it is now. So an added cost like increased minimum wage for some sectors might be really challenging to overcome.”
Andrykew says we’re seeing a lot of payments being deferred and although people are hoping to see things ramp up this summer, it is very much up in the air and there is some discussion around postponing the minimum wage increase. “So when you start looking at sectors where they do pay closer to minimum wage or just above it, that’s where the impact is. So looking at a particular date to defer to, we don’t necessarily have a good grasp on when that should be at this point.”
“Obviously when businesses are starting to ramp up and of we’re looking at bringing employees back and hopefully starting to look at increased sales for our members, any increased cost is going to be a real hindrance in the recovery effort.”
In terms of when it may be more palatable to see minimum wage go up, Andrykew says it is difficult to say at this time.
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