A minimum wage increase in B.C. is hitting small businesses hard, and has led to layoffs and closures.
Key Highlights :
A six-point-nine percent minimum wage hike mandated by the B.C. government is "unsustainable" for some businesses, when stacked on all other costs downloaded onto business, say a number of business groups.
As of June 1, the B.C. government is raising the minimum wage from $15.65 to $16.75 per hour.
The Business Council of B.C. (BCBC) released a report on the hike on Monday, saying that it will have a significant impact on small businesses.
"The BCBC report finds that the proposed minimum wage hike of 6.9 per cent is unsustainable for many businesses, and will have a significant negative impact on jobs and the economy," the BCBC said in a statement.
The BC Federation of Labour (BCFL) also released a report on the hike, saying that it will have a significant impact on businesses and workers.
"The BCFL report finds that the proposed minimum wage hike of 6.9 per cent is not only unsustainable, but will also result in job losses and reduced hours for low-wage workers," the BCFL said in a statement.
The B.C. Chamber of Commerce (BCCC) also released a report on the hike, saying that it will have a significant impact on businesses.
"The B.C. Chamber of Commerce's report finds that the proposed minimum wage hike of 6.9 per cent is not only unsustainable, but will also result in job losses and reduced hours for low-wage workers," the BCCC said in a statement.
The BC NDP government has said that the hike is necessary to help low-income workers.
"The minimum wage in B.C. is one of the lowest in the country, and it's not enough to live on. The NDP government is committed to raising the minimum wage to $16.75 an hour by 2021 so that everyone who works hard has the dignity and security of a good job," said B.C. Premier John Horgan in a statement.
The BC Liberal government has said that it will work with businesses to help them adjust to the hike.
"We understand that this is going to be a challenge for businesses, and we're committed to working with them to make sure they're able to adjust," said B.C. Finance Minister Carole James in a statement.
