The provincial government wants to raise the minimum wage.
The proposed minimum wage increase to $15 will damage the job market, especially entry-level and training level jobs, says Barrhead-Morinville-Westlock MLA Glenn van Dijken, and while the provincial government is now holding consultations on the subject, he thinks it is too soon for such a move.
“My opinion is the provincial government should have had consultations about this before the legislative part was even considered,” van Dijken said, adding it is frustrating for him to see the government trying to proceed from an ideological base rather than having discussions ahead of time.
“What we need to have is a balanced approach and an understanding that minimum wage is generally understood to be an entry level, training-level wage,” he said, adding the expectation is that the proposed increase will not be in the range of what is considered a ‘livable’ wage.
A better way to achieve balance, van Dijken said, is through economic growth.
“The increase itself, from what it is now to $15 is going to be very detrimental to those entry-level jobs that newcomers to the workforce are seeking,” he said, adding the idea of forcing businesses to think differently about their new hires, about whether it is a student or an adult with similar experience, is wrong.
“I have talked to many small business owners in Barrhead and the fact is, this increase is going to make it difficult for them to maintain at that level and justify it to themselves, and that’s going to mean either prices go up or staff are going to be reduced,” van Dijken said.
His concern is that while the intentions are good, raising minimum wage is going to cause more problems than it fixes.
“Many small businesses do not have the ability to pass on these expenses to the customer and so, I’m concerned for the small entrepeneurs who will be facing this challenge moving forward,” he said, adding at the end of the day, the effects of this increase are going to be felt all across the board.
“It isn’t going to just affect the wage-earner at the entry or training level, because it is going to filter upward. The people in intermediate and senior positions, if they are being compensated at the same rate as new hires, they aren’t going to feel like they are being treated fairly. They’ll want more money, and so will the next person too. This increases costs throughout the spectrum and I do not believe it is in the best interests of the people trying to enter the workforce.”
Individual wages will have to be adjusted appropriately to reflect this change, van Dijken said, adding it has to be recognized that increasing the price of labour artificially inflates the economy.
“It would have been really good if they [provincial government] had thought to ask people before they started down this road, because they claim this is what the people want,” he said. “I haven’t heard that myself and it makes no sense to me to do things backwards like this current government is doing. Good planning involves doing your homework first, in my opinion.”
