To coincide with today’s raising of the minimum wage in B.C. by $0.40 cents to $10.85, the Canadian Federation of Independent Business has released a survey of its members outlining the negative effects of the raise.
Sixteen per cent say they will reduce the number of people they employ, 18 per cent will cut the hours of staff, and 26 per cent say they will reduce their hiring of youth and/or inexperienced workers.
Thirty-four per cent of business owners reported reduced profits, 19 per cent said expansion plans will be delayed, and 33 per cent say they’ll have to raise prices.
“The knee-jerk impulse to force employers to pay higher wages for entry-level jobs may make the politicians feel like they are doing something, but it may actually do more harm than good,” said Richard Truscott, vice-president of BC and Alberta in a statement.
On the other side of the issue, the BC Federation of Labour has several rallies planned for this afternoon at SkyTrain stations to continue its campaign to raise the minimum wage to $15 an hour.
More than 3/4 of B.C. business owners think the government should be required to conduct and publicly release the results of a thorough employment and economic impact analysis for proposed minimum wage increases.