Opinions are split as Black Diamond and Turner Valley business owners discuss Alberta’s new minimum wage.
While some are concerned about the future of their business as the provincial government follows through with its promise to raise the minimum wage to $15 per hour by 2018 in increments, others are embracing it.
“I don’t think it will affect my business in any way at all,” said Terry Myhre, owner of the Chuckwagon Café and Cattle Co. in Turner Valley. “I’m so much for it. I know I’m not on the same page as most business people.”
Myhre said he has a mature business with hard-working employees who already earn more than the current minimum wage of $12.20 per hour.
“We are so far away from that minimum wage that it doesn’t really have much affect on us,” he said. “We’ve had it very good for so long in Alberta and to have the wage where it is just isn’t right. Get over the pain, let it happen and let’s move on.”
Alberta’s minimum wage rose to $12.20 per hour on Oct. 1. It will rise to $13.60 per hour in 12 months before reaching $15 in 2018.
Myhre said he will have to increase the prices on his menu items to compensate for the increase
“I really think we can afford it,” he said. “We put out a good product and people are willing to pay for that product. Going out to eat is disposable income. It’s not something we have to do.”
Bev Geier, president of the Diamond Valley Chamber of Commerce, said wage increases are nothing new to Albertans.
“Minimum wage has gone up all the time,” she said. “I think that people grow with it. It just means they have to increase the price of their products or services.”
This doesn’t worry Geier, who owns a flower shop in Black Diamond. She said people who want to spend money will, no matter the cost.
“I know the economy is bad, but people get through,” she said. “It keeps going around in a circle. To me this is the price of business.”
Geier said she’s happy to see the increase, adding $15 is a good wage for a low-level business.
“For these people who are making $12 an hour now I think if they make $15, way to go,” she said. “If they are smart business people they just learn to put their prices up.”
Mike Kingston, owner of The Stop Coffee House and Gathering Place, said raising prices is not easy, particularly in a small community like Black Diamond.
“How am I going to generate the volume to try to offset that expense in a community like this?” he said. “It’s not a city of a million people.”
Speaking with other business owners, Kingston said many expect to reduce staff to afford the increase. He will likely to do the same.
“I’m not against paying people $15 an hour, but I’ve got to pay what I think is fair in terms of what the business can afford to pay,” he said. “If I’m just breaking even why would I bother doing it?”
Kingston said none of his current 10 staff members earn minimum wage, but very few make $15 an hour either.
When crunching the numbers, Kingston learned his biggest expense will increase by more than 20 per cent in 18 months.
“In order for me to offset that I would have to offset my sales by $100,000 in 18 months,” he said. “I don’t know how I’m possibly going to do that.”
This has Kingston worried about the future of small towns like Black Diamond.
“I don’t see oil going up or people having more disposable income in 18 months,” he said. “There are businesses on the edge that are just hanging on. How are they going to absorb that? The real issue is the economics of this and the timing.”
Marv Garriott, owner of Marv’s Classic Soda Shop, said while he is not opposed to increasing the minimum wage for some, it doesn’t make sense in a full-service restaurant where servers make tips.
“Lots of them are 13 or 14 years old and they certainly don’t need $25 an hour to live at home,” he said. “The ones that are actually doing it for a living are putting in full time and they’re making more than that anyways.”
When his lowest-paid staff receive a wage increase, Garriott said that means paying his higher-paid staff two or three dollars more an hour.
“I can’t do anything about it,” he said.
“All I know is it’s not going to be good. I’m either going to have to just carry on and pay the consequences or get out of the food service business and go back into selling candy again.”
