The BC Director of the Canadian Taxpayers Federation says the provincial government should have delayed the minimum wage increase that went into effect today.
Kris Sims was speaking on NL Newsday as the province’s general minimum wage increased to $14.60 an hour, with an increase to $13.95 also coming into effect for liquor servers.
“I can’t imagine what it would be like for the past six weeks or two months or so without any income coming through the door, and now they finally get dining rooms sort of reopened, probably after they’ve had to install plexiglass at their own expense, and now saying by the way, your minimum wage is going up,” she said.
“We just think this could have been done better.”
Labour Minister Harry Bains says he understands the pressures facing employers because of COVID-19, but he says workers are also struggling.
Meanwhile, Finance Minister Carole James told NL News back in April that the minimum wage increase will go ahead as planned, noting the government has deferred a number of taxes and payments – the Employers Health Tax, the PST, the sales tax, and the carbon tax – to help small businesses.
“Maybe they could have delayed it. They could have delayed it by say six months, just to allow these businesses to reopen,” Sims added.
“And we need to keep in mind, when people say businesses, we’re not talking about the big guys, like Walmart. Quite often, minimum wage will affect directly like you say the restaurant industry. The province should have thought this through a little bit more.”
She says the unprecedented economic impacts brought on by the pandemic should have been reason enough to delay the planned increase.
“People who have invested their life savings into the businesses, they just don’t know how they are going to do it, and then when they open their doors, their costs are automatically increased because of this minimum wage increase,” said Sims.
“Never before has the government had to shut down huge sectors of our economy, and so this is why we are saying, ‘guys, couldn’t you have done this a bit better? At least delay it six months and see where you’re at.'”
There is one more increase to B.C.’s minimum wage set to happen, when it increases to $15.20 an hour in June 2021.
