Increasing minimum wage in Alberta is not a solution to dealing with poverty, says the Alberta Chambers of Commerce (ACC).
Ken Kobly, the president and CEO of the ACC spoke with members of the Ponoka and District Chamber of Commerce during a luncheon Tuesday, June 18 on issues with regard to raising the minimum wage in Alberta.
He says the biggest issue is the proposal to raise minimum wage to $15 from $10.20 in three years. His goal is to give the NDP majority government a different perspective on why increasing the minimum wage may be a detriment, not only to businesses but to those receiving more money.
Upon hearing of the proposed increase, the ACC polled its members with a survey and received 1,500 responses. Of those responses, 1,100 added long format comments as to how the increase will affect their business.
“They do in fact communicate the message from small businesses to the impact of the increase of minimum wage,” said Kobly in an interview.
Some comments stated businesses will have to look at different ways to keep their costs low. Others, such as child care and not-for-profit associations were concerned that their funding, received from government, will not be enough to pay for the increase in salaries.
Kobly told attendees that in the end it will be customers who pay the difference as corporations will look at keeping their margins. He added that increasing the minimum wage has other effect on businesses; if a staff member is a supervisor and is paid $16 an hour yet the minimum wage is at $15, Kobly suggests those supervisors are going to want more money for their work.
With this new government there is some uncertainty as to whether ministers will listen to its constituents, yet Kobly feels the ACC has had a positive relationship with the NDP over the years.
“We’re in unchartered territory in this province. We’re going through right now, what pretty much every other province goes through every 10 to 12 years with change of government,” said Kobly. “We have to give them (ministers) time to understand their portfolios.”
“We have been welcomed to present and I hope that the comments that we have presented in the consultation will be taken seriously,” he added, clarifying that Minister of Jobs, Skills, Training and Labour Lori Sigurdson had received the ACC’s recommendations.
Another area the increase will negatively affect workers is the potential to lose out on federal benefits if they make more money.
“When you get into a $15 an hour wage, the federal government cuts off child care benefit, the GST credit and the working income tax benefit,” said Kobly.
He said those benefits could amount to $2,700 less in a worker’s paycheck. The ACC feels there is some common ground to reduce issues of poverty but increasing the minimum wage may not be the best answer.