PRINCE GEORGE – B.C. will once again see a minimum wage increase, as this upcoming June 1 it will rise to $17.40 per hour, up from $16.75 per hour. The provincial government says this 3.9% increase is consistent with B.C.’s average rate of inflation in 2023, and while this pay bump may be appreciated by many who work at or close to the minimum wage, some think it isn’t enough to keep up with skyrocketing costs across the board.
“The living wage in Prince George is $22.09. This is where they work and needs to be able to pay for basic expenses in the city. And so we have even the the new increased minimum wage is almost $5 an hour lower than the living wage in Prince George,” said Iglika Ivanova, Senior Economist for the Canadian Care for Policy Alternatives (CCPA).
While the increase may not be enough for the CCPA, who are concerned that minimum wage workers can’t keep up with the cost of living, for some local businesses their concerns are about juggling the expenses of running a business. The Black Clover’s owner Troy McKenzie says he understands why the pay increase took place, but says it’s crippling the hospitality industry’s efforts to rebound from the effects of the covid lockdowns, which are still being felt today.
“It’s an industry that historically has really tight margins, so any expense type of thing, obviously your labour costs are part of that, are pretty difficult to navigate without increasing price,” McKenzie said.
“We’re trying to get people out, but at the same time, the cost of goods and cost of labour rising continuously and aggressively over the last few years makes it so the only way you can make that up is to cut expense or increase revenue. And when we increase price, it deters people from going out and enjoying what we have to offer,” he continued.
McKenzie’s concerns are about more than just staying profitable in a competitive industry, as he also worries that a minimum wage increase may result in price increases across the board, so the problem of addressing rising costs may not actually be addressed. He added the hospitality industry is also historically where many get their first jobs, but since hiring is more expensive it may bar some from getting their first jobs, as keeping current staff and avoiding training costs
“This kind of hike and continued hike year over year sort of deters people from from doing that. Hang on to the old people instead of generating new people, it seems like that that cost is a little bit frightening for some of these businesses trying to rebuild what they do.”
As for the CCPA, Ivanova understands why businesses may be concerned, but says historically the data shows that minimum wage increases are more beneficial.
“When we look at the evidence, we don’t see evidence of widespread job losses when minimum wage increase. We don’t see the job loss that people are worried about. The research shows clearly from our previous experience that the benefits for low wage workers are higher than increased costs we see.”
Ivanova believes a solution to rising costs can’t come purely from raising the minimum wage though, so she believes advocating to the government for bolder action is the key. While she understands why some may be against the increase, she says minimum wage workers shouldn’t be the ones to suffer when looking for a solution to rising costs.
“We have a very high cost of living and there is another way to mitigate those, and that is through more government action, bolder action on housing, bolder action on protecting renters against very high rent decreases, bolder action in terms of looking at the cost of food and what can be done on that front,” Ivanova said.
“I agree employers shouldn’t be shouldering all the costs, but employers also have a responsibility in their cost of living crisis, so I think employers should be paying higher wages and also advocating for the kind of policies that will help people improve their quality of life so our wages don’t have to be so high to afford the basics,” she continued.
When the increase hits on June 1, B.C. will have the third highest minimum wage, behind Nunavut and Yukon.
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