The St. Albert and District Chamber of Commerce outlined its goals for the coming year at a meeting on Wednesday. Advocating on behalf of businesses regarding minimum wage increases remains one of its priorities. With businesses facing another increase this fall, the issue is not going to go away any time soon.
The minimum wage hike in Ontario has made headlines recently after some Tim Hortons franchises opted to cut employees' breaks and benefits to offset the wage increase.
Some have pointed to Alberta's minimum wage hikes as a comparison, suggesting that the impact here has been minimal and concerns in Ontario are overblown. But that's simply not true.
While Alberta has increased the wage in steps, unlike Ontario, it is still a tough pill to swallow. Alberta's minimum wage is currently at $13.60, but rises to $15 this fall. However, even the full effect of $13.60 minimum wage has not been felt yet, it's only been at that number since October.
Job numbers across the province were strong for the end of 2017, but traditionally the holiday season is strong for employment, especially in retail. How business owners will deal with a $15 minimum wage this fall remains to be seen, but it won't be surprising if Alberta sees Ontario-style backlash from businesses once the increase kicks in.
Many Alberta businesses are already hurting due to the previous increase. Local business owners have been forced to cut hours, wages and employees to deal with the increases. Alberta Chambers of Commerce President and CEO Ken Kobly said the increase is "one of the largest issues that we have dealt with in the 13 years I have been with the Alberta Chambers."
The Tim Hortons fiasco in Ontario have revealed some harsh truths. The food industry is a tough and competitive market and government-enforced wage increases can really impact the bottom line. Although many see Tim's as a large company, it's run by local franchisees who are the ones that have to pay these increases. Wages make up a significant expense and there is no easy way to absorb the increase, especially for small businesses.
Although Alberta has seen some positive signs economically, without a resurgence in the price of oil, our economy is still on shaky ground. Another significant minimum wage increase could stagnate growth. Last fall the C.D. Howe Institute released a study that suggested Alberta's increase in its minimum wage could lead to the loss of about 25,000 jobs, and just last week The Bank of Canada estimated there will be 60,000 fewer jobs across the country in 2019 due to the increases in minimum wages.
To say that minimum wage increases haven't hurt Alberta businesses is simply not true. Layoffs and cutbacks have happened all over the province, St. Albert included. Rachel Notley's government should take heed of what is happening in Ontario and expect the same to happen here if they don't change course.
