As of Monday, minimum wage earners are making more per hour, but it may still not be enough to live on. “Thankfully for me I don’t have a family or many major expenses so the wage at $13.60 worked alright for me,” said an Okotoks woman who serves at two local restaurants to get by. She has asked to remain anonymous. “I know many servers personally who still struggle.” She has benefitted from minimum wage change over her seven years of waiting tables, especially since the server minimum wage was once $1 less than the general wage at $9.20 per hour. The Alberta NDP announced in 2015 a three-year plan to increase minimum wage first moving from $11.20 to $12.20 in October 2016, which is when the lower server wage was abolished, then to $13.60 in 2017. On Oct. 1 minimum wage became $15 per hour. “The minimum wage increase will definitely have a bad impact on the service industry,” said the server. “Restaurants are planning to cut down servers’ hours to save labour costs.” She said there has also been some murmuring on social media that people may start tipping less knowing their servers are now making standard minimum wage, she said. So far she said she hasn’t noticed the difference in her own tips, which servers rely on as part of their income. Some people believe tips should be lower, particularly now that servers are making $15 per hour, she said, but that could mean pay cheques get even smaller. “The thing a lot of people don’t understand about the service industry is the three to seven per cent tip-out we have to share with the back-of-house employees,” she said. “That won’t change. So if people start tipping 10 per cent or less we won’t see most of it.” Sara Noyes, Okotoks District Chamber of Commerce president, said business have been planning for the increase to $15 for three years, but that doesn’t mean it won’t have an impact on their bottom line, their employees and their customers. “We’ve been hearing all kinds of things from businesses about maybe reducing staff or reducing hours or reducing benefits, all those kinds of things,” said Noyes. “I think we’re going to see business owners on the front lines more.” She said consumers could also be impacted as many businesses will be forced to raise some of their prices to offset carbon tax, minimum wage and other costs of doing business. “Normally profit margins in small businesses are very low to begin with and many are on the wire, which is why we see challenges occurring and pressure increasing when these things happen,” said Noyes. There could also be some pushback from employees who have been earning $15 to $18 per hour already, which seemed like a fair wage two years ago but now isn’t as good as it once was. They could be looking for incremental raises to still be making above minimum wage, she said. Highwood MLA Wayne Anderson said if elected, the United Conservative Party does not intend to roll back the $15 minimum wage.
