Albertans voted in a New Democratic Party government this spring after 44 years of Conservative majority rule following announcements that the province’s minimum wage, which is currently set at $10.20 per hour, would gradually see an increase to $15 per hour by 2018.
Similar legislation in major cities across North America has received both support and criticism from various parties. The magic wage number to hit major cities stands universally at $15 for the time being and wage hikes in Alberta, as is the case in many areas, are of import to the greater franchise business community.
Naturally, some view the impact of wage hikes to be positive, and some negative. Minimum wage hikes are thought to especially affect food service franchise businesses, as well as retail franchises, with various shops either fairing fine or poorly when required to raise employee earnings. Whether the number of jobs available will remain sufficient or whether a business can withstand a wage hike often takes time to ascertain, and usually only becomes clear after a wage hike is implemented.
Albertans earning minimum wage are generally supportive of the move while many business owners of small-scale enterprises are fearful that increased wages alongside other high cost items, such as food, would result in laying off employees or having to raise prices. Supporters of the wage hike, especially those already paying above the minimum wage threshold, believe paying employees more comes with specific benefits, like a loyal and productive staff, both beneficial to the long-term health of a business.
The Minister of Jobs, Skills, Training and Labour announced plans to report during the start of July what plan of action will result from discussions taking place this month. These discussions between governmental officials and various associations and organizations will involve hearing arguments and concerns to determine how best to implement the minimum wage hike as a phased increase. The increase would begin October 1, 2015.