BC is set to implement its latest annual minimum wage increase this week, increasing it from $15.65 to $16.75 per hour on June 1, but some BC business organizations aren’t thrilled about it.
For residents who make minimum wage, the hike will undoubtedly come as good news, especially in a province like BC, with Metro Vancouver’s cost of living, particularly regarding housing, continuing to grow.
So, why are business leaders upset?
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Several BC business organizations were not pleased about the minimum wage hike announcement—like the BC Chamber of Commerce and the Canadian Federation of Independent Business BC (CFIB BC).
The BC Restaurant and Foodservices Association is also concerned about the impending wage hike.
“BC businesses do not have the capacity to absorb more costs with employer paid sick days,” said CFIB BC in a tweet.
Meanwhile, the BC Chamber of Commerce says it’s “extremely disappointed with the government’s decision to increase the minimum wage by such a significant amount.”
“This decision is the wrong choice, at the wrong time.”
We asked the chamber of commerce about what BC could do to help businesses impacted by the wage hike, and it referred us to a news release from February 2023, which called on the government to reduce the overall cost of business.
“In the past six months, I’ve visited nearly 50 local chambers of commerce and boards of trade and have been told consistently that businesses, especially small- and medium-sized ones, are struggling,” said BC Chamber of Commerce Board Chair Dr. Greg Thomas.
“We need government, with the support of all MLAs, to develop policies and initiatives aimed at making BC a more friendly and welcoming place to run a business.”
The chamber also called out paid sick days.
Chamber president and CEO Fiona Famulak added, “Rising and new taxes, high fees and mandatory benefits are impacting the wellbeing of businesses across the province.”
But how are small businesses being impacted?
For at least one business, it means reducing hours.
Daily Hive obtained an email from Jet Pet, a local luxury pet resort, suggesting some new hours directly result from the BC minimum wage hike.
“This increase of $1.10 per hour has a dramatic effect on small businesses like Jet Pet. We want our team to have a working wage and we always are proud to pay over minimum wage. For that reason, and to avoid a price increase, we are shortening our opening hours slightly,” the email states.
“We absorbed as much of the cost increases as possible within the business, however we are not able to absorb all of the rising costs. To do so would adversely affect the high standards of service we provide to you, and your wonderful pet, on an ongoing basis.”
For all the doom and gloom about raising the minimum wage, the Canadian Centre for Policy Alternatives (CCPA) suggests many fears are misrepresented, particularly regarding job losses, according to a 2015 report, when people were concerned about raising BC’s minimum wage to $15 per hour when at the time it was only $10.45 per hour.
“The large job loss impacts predicted by some opponents of minimum wages misrepresent the existing economic research. In reading and using that research, it is important to recognize that estimates showing job loss effects of minimum wage increases apply only to teenagers. Estimated effects for young adult and adult workers range from insignificant to non-existent.”
The CCPA paper adds, “If there are some job loss effects, should we abandon a higher minimum wage in favour of other income equity and poverty reduction tools? I would argue not.”
Other studies also suggest that minimum wage doesn’t kill businesses or impact jobs.
What do you think about the minimum wage hike and its potential impact on business?
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