The minimum wage will be increasing in three stages starting May 1, which is good news for workers, but problematic for employers.
The legislated wage increase will see the general minimum wage go up from $8 an hour to $8.75. Then on Nov. 1 of this year it will increase again to $9.50 and on May 1, 2012 it will increase a third time to $10.25.
However, that increase is significantly smaller for liquor servers who will see their pay move to $8.50, $8.75 and $9 an hour over the same period.
The reasoning behind the two-tiered wage increase is the assumption that staff who serve alcohol receive more in tips than those who work in establishments that do not serve liquor.
Sechelt Chamber of Commerce president Jim Cleghorn sees the validity of the statement.
"For most waitresses working in a high quality restaurant, wage isn't even part of the equation. It shouldn't be anyway - the tips are where the money is," he said.
But Cleghorn notes the hospitality industry as a whole will suffer under the new wage increases, resulting in higher prices for consumers.
"Once again the hospitality industry is going to be the hardest hit by this whole thing because there is an elasticity of demand. Price goes up, demand goes down - so they are going to have to pass this on," he said.
Gibsons Chamber of Commerce president Michele Platje Devlin noted some in the restaurant industry are still struggling from the downturn in the economy and the implementation of the harmonized sales tax, making this wage increase hard to take.
The increase will also affect the ability of small business owners to hire part-time and summer staff, and it may result in wage increases for employees currently making more than the minimum wage. Cleghorn explains that as the gap between what people are making now and the minimum wage decreases, long-time employees may rightfully ask for a raise to keep their earnings proportionately higher than entry-level employees.
While the wage increases come with some problems for employers, Cleghorn thinks it's a step that needs to be taken to tackle the issue of working poor on the Sunshine Coast.
"It's not getting any better with the cost of housing, and for B.C. to have the lowest minimum wage in the country is disgraceful, quite frankly. It's the most expensive province in the country to live in, and the minimum wage should reflect that - and it will at the end of the day," he said.
For a full break down of the wage increases for employees in every sector, check out the Employment Standards Branch website at www.labour.gov.bc.ca/esb.
