Minimum wage in B.C. is rising. For many, that means a bigger pay cheque. But for small businesses, increasing wages for their employees will add up.
The Northern View asked several Prince Rupert businesses on Third Avenue West and Cow Bay how they will be affected.
Cafes and restaurants
Behind the counter at Cowpuccino’s Coffee House, owner Judson Rowse said he already pays many of his nine employees above the province’s current minimum wage.
At $11.35 an hour, B.C.’s rate is the third highest in Canada. On Feb. 8, the provincial government announced the minimum wage will be increased to $15.20 an hour in 2021. Over the next three years, wages will increase in increments, starting in June 2018 at $12.65 per hour, then up by $1.20, $0.75 and $0.60 until reaching the government’s proposed rate.
“I don’t really have a problem paying that to somebody who’s working for me who is incurring life’s expenses. It’s when I’ve got younger staff with no experience [who] really doesn’t have any costs. They say that those people will put it back into the economy, but I don’t really see them all of a sudden changing their lifestyle and drinking more coffee because they’ve got more money in their pocket,” Rowse said.
He’s done the math. Raising the price of his products — mostly coffee and homemade desserts — won’t absorb the increasing wages of his employees. As the costs of food will also rise over the next three years, Rowse said competing with larger chains, such as Tim Hortons and Starbucks, will become more difficult.
“What it would mean for me is I’m going to have to shorten my hours, give less available hours for people to enjoy my place, work more and probably lay people off and just keep the core crew,” he said. “There’s just no way — I’ll just go under. A lot of places will shut down. $11.35 to me is a pretty good wage, but they’ve said $15 seems to be the baseline.”
At The Fresh Onion, owner Sadiq Qazilbash echoes Rowse’s concerns.
“Right now, I don’t have any concerns, but we’ll see what happens when June rolls around. I’ll see how high my payroll goes, then I’ll readjust my menu items just to survive. I don’t want to raise my prices because it’s a fair price as it is now,” Qazilbash said.
Since the Fresh Onion serves only breakfast and lunch, he said many people don’t want to or can’t pay much more than he’s already charging.
With six employees, Qazilbash said he may have to lay people off if changing prices doesn’t work.
“It’ll be a little difficult for us. We’ll have to juggle things around.”
READ MORE: B.C. to increase minimum wage to $15.20/hour in 2021
Retail
“If the economy falters the first thing a lot of businesses cut, of course, is their employees. As long as the economy stays strong, I think we’ll probably be OK,” long-time businessman Robert McMeekin said. In the office at Cook’s Jewellers on Third Avenue West, he said the recent increases haven’t affected business yet because they were already paying their employees above the minimum wage. For their business, based in Prince Rupert, Terrace and Kitimat, it will come down to the overall economy.
“That’s up to the politicians of our province to keep our economy strong so that small business or any business can afford the wage impact,” McMeekin said. “Hopefully things stay strong in our province and, if they do, then hopefully we can weather the cost.”
Rice on wages
North Coast MLA Jennifer Rice said in an email, “We are taking a balanced approach to raising the minimum wage that will work better for everyone, by bringing in measured and predictable increases over time. The myth that only teenagers living with their parents are minimum wage earners was an excuse the BC Liberals used to delay helping the lowest paid people of B.C. while they were giving a $1 billion tax break to the wealthiest one per cent.
“People working full time shouldn’t be living in poverty.
“The BC NDP government is working hard to make life more affordable for people across the province, and also working hard to support our small businesses which are a critical part of our economy. That’s why we also cut the small business tax rate by 20 per cent making B.C.’s small-business tax rate the second lowest in Canada.”
Judson Rowse has poured 21 years into Cowpuccino’s, an establishment that is as much a social hub for Rupertites as it is a place to pick up a morning brew.
“I certainly don’t want to let it go because all of a sudden I’m in the red,” Rowse said. “I’m not working for that. We’re not in business for that, we’re in business to make a wage — we all are.”
READ MORE: Workers shouldn’t be used as ‘pawns’ in minimum wage fight: Wynne
keili.bartlett@thenorthernview.com
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