Alberta’s general minimum wage is going up Oct. 1, a move that the new NDP government vowed would come once it took office, but one causing mixed reaction among St. Albert businesses and minimum wage earners.
Adam Carmichael, general manager and co-owner of Famoso Neapolitan Pizzeria in St. Albert, said about 60 per cent of his staff are high school students on their first job, and the move of minimum wage from $10.20 to $11.20 per hour and liquor server minimum from $9.20 to $10.70 amounts to a “massive hit” to his and any business in the service industry.
“As a small business operator, I’m opposed to the increase – it’ll cost us over $50,000 more per year in wages – most businesses won’t be able to sustain it,” he said. “It’s outrageous to me that after the $15 per hour, three-year plan takes effect, a minimum wage line cook at Earl’s or Joey’s, or the cart clerk at Safeway will make the same as a starting teacher.”
Carmichael said his business only has a profit margin of two to eight per cent, so the drastic jump in pay will cut deeply into the pocket of small businesses like his.
“Unfortunately, as it always is, consumers will have to pay in the end. A $15 pizza will probably cost $20, or we’ll have to cut staff. It’s scary. I support workers who have a mortgage and kids to support, but is there a way to tier the wage that makes sense? Does a Grade 9 kid on his first job need to make $15 an hour?”
Alyssa Thiessen, a 23-year-old university graduate and full-time restaurant server in St. Albert, said the wage increase will be a much-needed change from her current life living “paycheque to paycheque.”
“It’s difficult to manage if you want to live in St. Albert. I’ve wanted to own a place for a few years, but can only afford a basement suite with my boyfriend. There’s nothing left at the end of the month, so increasing the wage would make a huge difference for me,” said Thiessen.
Currently with the lowest minimum wage in the country, the October increase will make Alberta’s wage number three. As business owner Jim Hole sees it, that will help keep workers here that may otherwise move on to better-paying provinces and positions.
“We need a stable workforce for people to stick around. Our business is seasonal and uses a lot of students, so it’s sometimes hard keeping people on. I’m in favour of the wage increase – it seems inevitable,” said Hole.
The Alberta Chambers of Commerce received more than 1,600 member responses following the minimum wage announcement, many indicating they’d have to raise prices or hire fewer workers to cope. In response, Lori Sigurdson, minister of jobs, skills, training and labour, said, “Our plan includes a two-year phase-out of the liquor server rate. We will continue to consult with stakeholders as we move forward on our goal over the next three years.”
Premier Notley added that the government will stick to the promise of raising minimum wage to $15 per hour by 2018.
On a Facebook post, St. Albert resident Carla Velthuizen offered another take on the increase, saying, “My husband and myself do shift work with the fire department and have three small children. We have a live-in nanny so if the wage goes to $15 an hour, our family would have to pay our nanny almost my entire paycheque for the month. What’s the point in working anymore? We are not wealthy – we are blue collar workers. I’m very worried for our family’s future.”
Another resident, Lyndsey Conrad, posted that a $15 minimum wage won’t boost economic growth, but will lead to job loss and reduced service as small and large businesses deal with a new bottom line.
“I will stop tipping in restaurants, “ added Roy Bedford. “I tip now because wages are low.”
The Alberta government is offering employers and employees with questions about minimum wages to contact the Employment Standards Contact Centre at 780-427-3731, or work.alberta.ca/minimumwage.
