The province has unveiled a three-step, three-year plan that will see Alberta’s minimum wage reach $15 per hour in 2018.
The first step in Alberta’s plan to bring the province’s minimum wage closer to a living wage will occur on Oct. 1 with a one dollar increase to the current general minimum wage. The liquor server differential will be eliminated and there will be only one minimum wage recognized in Alberta.
Alberta’s current minimum wage is $11.20 per hour following an increase implemented last October. The minimum wage for liquor servers is currently $10.70.
An increase of $1.40 will be implemented in October 2017, and then again in 2018 to bring Alberta’s minimum wage to $15 hourly.
Weekly and monthly minimum wages will rise from $446 to $486, and from $2,127 to $2,316, respectively.
Also announced was a lowering of the small business tax from three per cent to two per cent in 2017.
In response to questions regarding concerns of Alberta’s hospitality industry, Christina Gray, Alberta’s minister of labour, said Restaurants Canada and various labour groups were heard throughout the process and involved in consultations.
“Alberta is, and remains, one of the best places to start a business, with a young and diverse workforce. We have the lowest taxes in Canada with the reduction of the small business tax, no PST, no payable tax and no healthcare levies, so Alberta businesses have a lot of advantages,” said Gray.
Banff Lake Louise Hospitality Association (BLLHA) has consistently urged the government to reconsider the wage increase until the economy is back on track.
BLLT released a statement saying it is disappointed with the government’s decision to “proceed with an increase of 9.2 per cent to the minimum wage at a time that Alberta is dealing with unprecedented and unrelenting economic and fiscal conditions.”
“Businesses in tourism and hospitality are already grappling with huge price increases in fresh fruit, vegetables and proteins,” said Darren Reeder, executive director of BLLHA. “There simply isn’t the margin to absorb a $1/hr increase in the minimum wage when you look at this from the perspective of our partners across the province.”
Alberta Liberal leader David Swann released a statement immediately following the announcement of the three-year plan, urging the government to recognize the concerns of small business owners.
“Despite all its consultations, this government is clearly not attuned to the needs of business owners,” said Swann in a media release. “Either they’re simply refusing to listen to what businesses have to say, or they’re too ideologically driven to acknowledge the timing of their plan needs to be reconsidered; either way, they are not paying attention to the reality of the business climate today.”
Gray stated the government is aware of the current economic downturn’s effect on small businesses and said the government will continue to support these businesses in the future.
“It’s a priority for our Alberta government to support business, and so we have decreased the small business tax to support them,” said Gray. “As well, we’ll be working with businesses moving forward to try and support them.”
However, many in the hospitality business feel this won’t be enough to prevent lay-offs and possible business closures.
“I urge the government to take its head out of the sand and recognize the concerns of those that will be negatively affected by their policy,” said Swann. “This one-sided, top-down approach to the issue threatens to do more harm than good.”
Currently, approximately 59,000 Albertans earn minimum wage with 43 per cent of minimum wage earners working full time. Overall, 77 per cent of minimum wage workers have permanent jobs.
