Banff & Lake Louise Hospitality Association is calling on the provincial government to put a moratorium in place on future minimum wage hikes until further investigation into how the increases will affect Alberta’s economy.
The group has sent a letter to Banff-Cochrane MLA Cam Westhead asking him to introduce a motion in the Alberta legislature for a freeze on the NDP’s campaign commitment to increase the minimum wage in stages to $15 by 2018.
“We (want) a moratorium on any decision on future increases to the minimum wage until such time that a comprehensive economic impact analysis is completed that considers the current state of the Alberta economy,” said Darren Reeder, BLLHA’s executive director.
“The issue for business is the same as it’s always been – we need a predictable policy environment where policy is informed by real economic and labour market data.”
Westhead said he would take BLLHA’s concerns to Labour Minister Lori Sigurdson.
“I’m going to be meeting with the minister early in the New Year, just in general a meeting with her about constituency issues,” he said.
“Definitely the subject of BLLHA’s letter and perspective will certainly be a part of that conversation.”
The Alberta NDP has pledged to raise the minimum wage in stages to $15 by 2018, though Premier Rachel Notley last week indicated the campaign commitment to increase the minimum wage to $15 was at best a ‘notional’ target.
In October, Alberta’s minimum wage went from $10.20 an hour to $11.20 – from the lowest in the country to one of the highest. Only Ontario and the Northwest Territories pay higher, at $11.25 and $12.50, respectively.
There’s an hourly minimum wage of $10.70 for employees serving liquor as part of their regular job, up $1.50. Liquor servers cannot be paid less than this, even if they receive tips or some other kind of bonus. This special rate will be eliminated in 2016.
Reeder said the government’s minimum wage policy decision fails to recognize hourly rates of pay are only one aspect of the full compensation package paid to many in the hospitality workforce within Banff National Park.
Based on a survey earlier this year, he said 62 per cent of employers reported that full compensation calculations resulted in their employees making 20 to 30 per cent, or more, on top of their base compensation/hourly rate.
He said full compensation includes housing subsidies, uniforms, meals, tips, gratuities, commissions, bonuses and employer paid benefit packages.
Reeder said labour pressures have eased significantly in other areas of the province – but that’s not the case for Banff where a recently released study revealed a shortage of more than 400 workers in Banff last July alone.
“The labour market remains relatively tight in Banff National Park at this time with full expectations that our labour challenges will be greater than ever as we ramp up for summer 2016,” he said.
“Many businesses in our constituency are concerned that future increases to the minimum wage may force them to curtail hours of operation and/or have to look at reducing the size of their labour force.”
According to the provincial government, approximately 38,600 Albertans were earning minimum wage from April 2014 – March 2015.
Minister Sigurdson said increasing minimum wages will help low-income earners take care of their families, and will reduce staff turnover, lower hiring costs, and improve fairness.
“Minimum wage earners spend more of their income, boosting the economy and creating jobs,” she said.
