Employees in the hospitality and other low-paying industries are about to get a raise on April 1 and many of their bosses wish it was a joke.
Manitoba's minimum wage is set to jump 50 cents on April Fools' Day to $8.50 per hour, the third hike since 2006.
John Coward, with servers Brittany Barber and Alana McCrank, would like to see the province go to a two-tiered minimum wage system.
Owners of restaurants and bars will be the hardest hit as they employ among the highest percentage of workers earning minimum wage while operating in a hyper-competitive market.
John Coward, general manager of Buccacino's in Osborne Village, said many restaurateurs feel as if they're being nickel and dimed every time they turn around.
"(The minimum wage hike) will probably cause a few restaurants to go under. I have a lot of staff, it's not cheap for me when the minimum wage goes up, " he said.
Coward said he wonders why Manitoba doesn't follow the lead of other provinces where two-tiered minimum wage systems pay a lower wage to gratuities-earning employees of bars and restaurants and a higher wage to the likes of retail sales people, security guards, education assistants, nurses' aides and parking lot attendants.
"My servers don't care about minimum wage, it really doesn't affect them. They're making $15 or more an hour in tips."
Scott Jocelyn, executive director of the Manitoba Restaurant and Foodservices Association, said there are currently 1,700 eating establishments in the province, the lowest level since 1994.
"I think the minimum wage increase will make it even more difficult for many restaurants to survive," he said, predicting "dozens" more could close their doors this year.
He said the ongoing labour shortage means most employers pay more than minimum wage anyway but every employee wants a raise when minimum wage goes up.
"You have other employees who come to you and say, 'I was 50 cents above the minimum wage yesterday and I want to be 50 cents above the minimum wage today,'" he said.
The most disappointing part for Dave Angus, president and CEO of the Winnipeg Chamber of Commerce, is business owners weren't consulted on the wage hike. He said government has a responsibility to consult with businesses when making decisions that will affect them.
"Now there's no trust. Government will willy-nilly make these kinds of decisions unilaterally. It makes it difficult for businesses to operate when there's so much uncertainty," he said. "It's the throwing-a-dart-on-the-wall method of determining the minimum wage increase."
Angus said while 50 cents might not seem like much, it turns into a much bigger number when multiplied by every hour and every employee on the payroll. He said the extra costs will force many employers to attempt to do more with less, particularly if they're not able to pass the costs on to consumers.
Coward said his higher cost base won't cause him to cut back on staff but it may mean some younger people will have trouble breaking into the industry.
Labour and Immigration Minister Nancy Allan defended the wage increase by saying the province wants to ensure low-income earners, many of whom are women, immigrants and students, make a reasonable salary.
geoff.kirbyson@freepress.mb.ca
Minimum wage workers in Manitoba will earn an additional 50 cents per hour starting April 1, a move that ties the province for the second-highest minimum wage rate in the country.
Only Ontario, which is scheduled to hike its rate 75 cents to $8.75 on March 31, will be higher.
Here's a list of minimum wage rates across Canada:
Ontario $8.75
Manitoba and Nunavut $8.50
The Yukon $8.37
Northwest Territories and Saskatchewan $8.25
Alberta, British Columbia, Quebec and Newfoundland & Labrador (as of April 1) $8.00
New Brunswick (as of March 31) $7.75
Nova Scotia $7.60
Prince Edward Island $7.50
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