The Barrhead Chamber of Commerce is worried about the future of student employment.
Following a May 18 media release from the provincial government, regarding public consultations on a proposed minimum wage increase, Barrhead chamber president Dave Sawatzky spoke with the Barrhead Leader to express his concerns.
“From the chamber’s perspective, there are two concerning elements with this proposed increase — the effect it is undoubtedly going to have on student employment, and whether or not there will be lay-offs,” Sawatzky said, adding in his opinion, neither the chamber nor any business-owner across the nation is against employees earning a living wage.
A 15-year-old student living at home doesn’t really need a living wage, Sawatzky said, adding at that age, it is more about recreation and having gas money.
“The feeling is that when it comes down to it, with this increase, employers are going to be facing a choice — do they hire a student, or an adult with similar experience, and while businesses here in town are getting more and more educated about the various employment programs offered through the schools here, student employment is going to be dramatically affected.”
Of no less concern, Sawatzky said, is the potential for lay-offs or, in some cases, the elimination of part-time employment.
“Most of the businesses here in town and in the surrounding areas, I don’t think they can cover the costs of this type of pay increase for their staff in general and these issues are going to affect all of the chamber’s members,” he said, adding the last thing anybody wants is to have to cut staff or reduce hours.
“If the wage increase isn’t affordable, something is going to have to be done,” he said.
Sawatzky said consultations with employers, social organizations and low-income earners should have been held long before the legislation was considered.
“Costs are going to increase and the provincial government is not really putting the thought they need to into this, plowing ahead with their agenda regardless of the consequences. No one is against a living wage, but I’m not sure if this is the type of economy where an increase like that is a viable option. A lot of businesses are struggling, and I don’t think it is the right time for it personally,” he said.
The business community in Barrhead is doing better than other communities in Alberta are right now, Sawatzky said, but added he did not know of any business himself that could afford the jump from $10 to $15/hr.
“If the provincial government is dead-set on moving forward and they want to raise the minimum wage to $15, I think a lot more thought needs to go into this to protect our employees, especially the students. It is a huge concern, I would think, right across the province because it is going to kill student labour and to me, that’s extremely frustrating and sad,” he said.
Everyone’s business model is different, but the effects of the proposed increase will have a ripple effect he said.
“It is going to come down to whether the economy can handle something like this,” he said, adding while he could not speak on behalf of the businesses in the area, he did not think the increase would be good for anyone.
“Paying more for labour with squeezed margins, are you going to want to donate? Are you going to participate in all of these beautiful community events that Barrhead puts on? I don’t think so.”
