Minimum wage increase bad for employers

The new B.C. minimum wage now makes B.C. having the second highest paid minimum wage in Canada.

Minimum wage increase bad for employers

The minimum wage in B.C. went from $13.85 per hour to $14.60 per hour, effective, June 1, 2020, a 5.4 per cent increase.

The cost of living came in at a minus, because of the economic situation in B.C. The employee is paid $14.60 per hour but the actual cost to the employer is $18.85 per hour when you add in the benefits the employer pays on behalf of its employees. The new B.C. minimum wage now makes B.C. having the second highest paid minimum wage in Canada.

This latest wage increase with the current situation of the employment scene in B.C. will create to the added unemployment rate.

In February, 2020, the unemployment rate in B.C. was five per cent, the lowest in Canada.

In March, 2020, the unemployment rate in B.C. was 7.2 per cent.

In April, 2020, the unemployment rate in B.C. was 11.5 per cent making B.C. no longer having the lowest unemployment rate in Canada.

B.C. now has the fifth lowest unemployment rate in Canada. When May rates are published, the unemployment rate will again be higher than 11.5 per cent.

This increase in the minimum wage will now increase employer portions of Canada Pension Plan, Employment Insurance, Worksafe premiums, vacation pay, employer health care tax, and increases to group insurance benefits for employers that do have these benefit programs.

This increase is very wrong, especially to the food service industry. Some restaurants have recently opened again, but are obligated to operating at a 50 per cent capacity. Having to operate already at a 50 per cent capacity and having to pay more in wages is a no win situation, and to some employers, they might be thinking, why bother, and just stay closed.

Owners of fast food franchises will now have to absorb this wage increase out of their own bottom line operating profits as these franchises are not allowed to increase their menu prices, as that would be in violation of their franchise agreements.

This wage increase would have been put on hold if the B.C. Minister of Labour had owned some fast food franchises, as he would then admit that the wage is not economical to any employer with the current employment situation in B.C.

Facts and reality always prevail, but this is not the case with this June 1, wage increase.

Unbelievable!

Joe Sawchuk

Duncan

Letters

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Collision knocks over fire hydrant on Ypres Street

Duncan firefighters quick to get situation under control

Pumps not needed on the Cowichan River this year

Wet year so far has resulted in higher water levels

Pig destined for sanctuary goes missing from Cobble Hill farm

Berleen was less than two weeks from travelling to Manitoba when she vanished

Editorial: Mask wearing: innocuous advice has turned into polarizing war

Somehow, this innocuous recommendation has become a polarizing war for some.

578 British Columbians currently infected with COVID-19

Seventy-eight new cases confirmed in past 24 hours

Captive fawn seized from Island home

Valley resident charged and fined under the Wildlife Act

Pandemic could be driving more parents to get on board with flu shot: study

University of B.C. study gauges willingness for parents to vaccinate children for influenza

Watchdog clears Okanagan RCMP in death of man after arrest over alleged stolen pizzas

The man died in hospital after having difficulty breathing and broken ribs

Health Canada says several kids hospitalized after eating edible pot products

People warned not to store cannabis products where children can find them

‘It’s not just about me’: McKenna cites need to protect politicians from threats

Police investigation was launched after someone yelled obscenities at a member of McKenna’s staff

Michigan plans dedicated road lanes for autonomous vehicles

First study of its kind in the U.S. to figure out whether existing lanes or shoulders could be used

Filmmaker James Cameron’s Comox Valley winery up for sale

The director behind The Terminator and Titanic puts Beaufort Winery on the market after six years

Most Read