An Okotoks businessman will be studying his staff hours along with the rising cost of fresh vegetables in light of the recent increase in minimum wage.
“We are in a business where every penny counts,” said Larry Mathieson, owner/operator of Freshii Okotoks. “As a fast-casual food restaurant there is not a huge margin for profit…. We are definitely going to look at how we are going to maximize our labour.”
The provincial minimum wage was increased to $13.60 per hour from $12.20 effective Oct. 1.
This is the third step of the NDP provincial government’s gradual phase-in to reach $15 per hour for minimum wage effective Oct. 1, 2018.
“All hardworking people deserve to earn enough money to support themselves and their families,” said Alberta Minister of Labour Christina Gray in a prepared statement. “Our government is staying true to our commitment to make life better for those Albertans who earn the bare minimum. This increase will boost the spending power of low-income people, which supports Alberta’s economic recovery.”
Mathieson said the jury is still out whether the increase will put more hard-earned cash in his employees’ pockets.
He said while he will pay more, staff members may lose some hours, adding Freshii Okotoks may look at ways to cut staff hours, including the numbers needed at specific times such as closing.
“We have a number of staff who want more hours — but we can’t give them the hours,” he said.
Mathieson said if employees aren’t getting the hours, it could mean less expendable money for his staff, not more.
He is also concerned that the cost of extra staffing will be passed on. For example, businesses that supply Freshii’s produce may have to increase their salaries.
Mathieson is hoping that doesn’t result in having to charge his customers more.
Meanwhile, the Okotoks Chamber of Commerce will continue to battle the increase to minimum wages.
“It is not going to help the people it is intended to help,” said chamber president Andrew Gustafson. “It’s causing undue stress to small business in a time in which small businesses are experiencing stress during an economic downfall… the timing of this is terrible.”
Alberta chambers of commerce have been lobbying to change the legislation.
However, that doesn’t mean the Okotoks chamber or Gustafson are against employees making a reasonable “living wage.”
“A living wage is not the same thing as a minimum wage,” Gustafson said. “The people who are receiving these increases in minimum wage are people that don’t need a living wage — they are students, they are living at home and they are young.
“They are working in positions that aren’t intended to provide a living wage. No business owner, and certainly not the chamber of commerce would argue people don’t deserve a fair living wage for a fair day’s work.
“We are just suggesting that minimum wage and living wage are not the same thing.”
Gustafson said at Natural High Fitness, which he owns and operates, the wage increase does not directly affect his business as his employees make more than the minimum.
However, he said there could be an indirect affect as there is less money in the Okotoks community due to the minimum wage increase.
