Some Sundre businesses will be affected by a provincial decision to increase Alberta's minimum wage in September.
The general minimum wage will increase from $9.95 per hour to $10.20 per hour, and the liquor server minimum wage will increase from $9.05 per hour to $9.20 per hour, according to a release from the provincial government.
“I haven't heard any negative feedback from local businesses,” said Mike Beukeboom, president of the Sundre & District Chamber of Commerce. “My sense is that many of the businesses are paying above minimum wage anyway.”
Trendies owner Chris Vardas said the increase will poorly affect business.
“Because the cost of living is going through the roof you've got to increase the minimum wage, but at the same token though, that will affect the outcome of our business,” said Vardas. “Because the fact is, whatever cost we incur, we have to pass it on to the consumer. And the consumer, at that point in time, will they pay for it or not is going to be a tough call.”
“It's going to hurt a lot of businesses. The service industry is the one that's going to get kicked hard. We're right at the bottom of the scale type-thing, and people don't want to pay expensive prices.”
He noted that in big cities businesses are able to sell product for more than in small towns.
“Consumers will have to pay the price, so it will affect our numbers for sure.”
The minimum wage increase is based on a formula used since 2011 that links the wage rate to annual increases in average weekly earnings and the Consumer Price Index (CPI) in Alberta.
Over the past year, average weekly earnings increased by 3.3 per cent in Alberta, and the CPI increased by 1.4 per cent. The average of 2.3 per cent translates into an increase of 25 cents per hour, according to government officials.
“While Alberta has the lowest percentage of employees earning minimum wage in the country, these individuals form an important part of our workforce. Many work in the service and retail sectors and are gaining the experience they need to succeed. These changes will give them a modest increase while keeping the viability of their employers in mind as well,” reported Kyle Fawcett, minister of jobs, skills, training and labour.
According to the release, approximately 25,700 individuals, or 1.5 per cent of employees in the province earn minimum wage.
“When Alberta's high personal exemption and low tax rates are factored in, the new general minimum wage ranks second highest in Canada, after Ontario,” states the release.
