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Penticton  

Concern over wage hike

UPDATE: 4:35 p.m.

Penticton chamber president Michael Magnusson is echoing the concerns raised by the BC Chamber this week about raising the minimum wage.

"Raising minimum wage can significantly impact business', particularly small businesses', ability to maintain or grow their current workforce," he said. "Either retail costs of goods and/or services will rise to offset the increase to minimum wage, or employers will implement new efficiencies, which generally translates into reduced hours for workers, or both.”

The BC Chamber of Commerce voiced concern earlier this week about the impact the announcement of two larger-than-expected minimum wage increases will have on B.C. businesses.

“There’s no denying that these two minimum wage increases will be tough for some of our 36,000 represented businesses across the province,” said Maureen Kirkbride, BC chamber interim CEO. “That said, we appreciate government’s efforts to offset negative impacts on business, notably by decreasing the small business tax to 1.5 per cent in 2017.”

The chamber recognizes that the government has been clear about its intention to raise the minimum wage relative to other Canadian jurisdictions to match the province's strong recent economic performance.

However, going forward, the chamber urges government to return to tying minimum wage increases to the Consumer Price Index.

“For our businesses, the bottom line is the need for certainty and predictability,” said Kirkbride. “Quite simply, we need to take the politics out of minimum wage increases.”

In 2015, the BC Chamber’s membership passed a policy arguing for the need for predictability in minimum wage increases and calling for no minimum wage increases beyond those tied to CPI.

The BC Chamber is the largest and most broadly-based business organization in the province.


ORIGINAL

The B.C. government’s announcement that a minimum wage hike is in the offing has caught members of Greater Vernon's Chamber of Commerce off guard.

“There is definitely some concern about the potential impact following the government’s announcement,” said Dan Rogers, general manager of the Greater Vernon Chamber.

“That concern is tempered though by the fact the province will reduce the small business tax rate to 1.5 per cent in 2017. The announced new training and youth employment program will also soften the blow to many of our small business members.”

The minimum wage is set to increase 40 cents to $10.85 per hour effective Sept. 15. One year later, it is expected to rise to $11.25.

Rogers said the chamber will continue to monitor what happens in the future and “voice our objection to more substantial increases to the minimum wage, as they have the greatest impact on very small, family-owned businesses.”

– Kate Bouey



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