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Newfoundland should hold the line on minimum wage hikes, business group says

Published on August 9, 2012
Published on August 9, 2012
Topics :
Canadian Federation of Independent Business , Newfoundland and Labrador

The Canadian Federation of Independent Business says hiking the minimum wage is not the best way to help Newfoundland and Labrador’s low-income earners.

An advisory committee has been tasked with reviewing the minimum wage in the province, which has been $10 an hour since July 2010.

That’s up from $6.25 an hour in 2005.

But the federation says the government should hold the line on increases and instead make changes to its personal income tax system.

The federation says Newfoundland and Labrador has the second lowest basic personal exemption in the country.

It says the government would be better off increasing the amount one can earn before paying taxes.

Leanne Hachey, the federation’s Atlantic vice-president, says business owners that can’t keep up with wage increases can end up cutting back on staff hours, reducing investments and eliminating positions.

Comments

  • Username
    educated & not paid enough
    - August 9, 2012 at 15:46:03

    Minimum wage here is the "norm" not a guideline as it is intended.There are too many part-time jobs with no benefits & the burden is passed on to taxpayers. Many, many of us have post secondary training, education & are still paid low wages. It's all fine for social workers to pipe up about raising minimum wage & not being the answer. It's ok for them, they're paid top salary from the taxpayer moneytree & I'm not even sure what it is they do! Drink lots of Tims for sure! As for small business' suffering too,,I'm sure there are some & equally sure there are lots more that take advantage. There are way too many people looking down their noses at those that work hard for their small paycheque

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  • Username
    James
    - August 9, 2012 at 15:02:57

    I know social workers who work with local income indivisls and those on social assistance who also agree that increasing minimum wage is not the solution for those people. Increasing the minimum wage just increases the cost of everything, businesses aren't going to take a hit if they can hand it over to the consumer. Some people work minimum wage jobs for something to do and it's not necessarily for an income to survive on. Those people don't need a raise. What we need is to help people who are working minimum wage jobs for survival to get better training so they can get jobs that pay better. Are you any better off making $0.25 more an hour if you end up paying an extra $10 a week on necessities?

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  • Username
    David
    - August 9, 2012 at 14:41:34

    Let's make it $12.50/hr, so we can say that wages have doubled in NL since 2005. The government can crow about that, even while unemployment goes even higher than it is now. But EI is the feds' problem...sweet, eh? Economic geniuses, I tell ya.

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    • Username
      a business man
      - August 9, 2012 at 19:22:45

      For my unskilled and uneducated workers, I don't want to pay $12.50/hour. Based on my profits, I could afford to pay $25 and still make a nice profit for myself. But simply put, I don't want to pay more than minimum wage so I will not. If the government forces me to pay more, I will move the company to a right to work state and pay roughly $7/hour. I will not have my profits cut into by unskilled uneducated Canadians. I would rather hire Americans.

  • Username
    SMALL Business Owner
    - August 9, 2012 at 14:01:49

    We can look at this several ways... one being that of the low income group and also that of the SMALL business owner. I own a little store that has gone from employing 2 full time and 2 part time people down to 2 part time people. The increase in the minimum wage has left me in a postition that I am wondering if it's even worth being open any longer. My wife and I work long hours at our business because due to the increase in the wages over the past few years, I have had to reduce hours for staff and pick up this time ourselves. People say oh the greed of the small business owner, but that's not how it is. I love my job and I am happy to be able to offer employment in my town but now I could be another business closing by year end. I understand that people need an increase in pay but if the government must do this, then they have to offer some tax relief to small business so that we too can survive. Maybe the alternative would be to jack up my prices and make people pay more and so begins the vicious cycle of higher prices and higher wages... I wish I could pay my staff more (and myself) but being in business does not always mean you are making a fortune. By the time I pay all my overhead (rent, insurance, property tax, business tax, EI, CPP, accounting fees, utilities, maintenance, salary, equipment maintenance, DONATIONS (which incidently come out of my pocket and are expected by everyone these days because I own a business), gas bill, banking fees, taxes, common area maintenance, and the list goes on), I make a living like everyone else. So please stop calling business owners greedy... we pay our price! We are the people who have everything on the line financially and stand to lose so much. Sorry, but this is just my thought on it.

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  • Username
    greedabounds
    - August 9, 2012 at 12:51:18

    Small Business' are just as greedy as big business', & they are posting record profits. enough said.

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  • Username
    Stephanie
    - August 9, 2012 at 12:19:25

    Dee. Government does have a subsidy program available to those who work full time. I am a single mom and was receiving this subsidy up until about 2 years ago. However you are right. the cost of living is so much higher and to afford to put a child in sports or pay for medial needs can be impossible. I lived that life and its not easy. Having said that at $10 an hour to pay for an apartment, food transportation and all the needs you would require you would have to work more then your average 40 hours a week. I make more then this and can't afford a place for myself and my son!

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  • Username
    Dee
    - August 9, 2012 at 11:54:15

    I don,t fall into this category I make a lot more then the min.wage the government can lower the taxes but how do you expect to raise and feed a family on $10.00 an hour,what if their kids want to play sports,music or even go to the mall and hang with friends,how can these kids fit in with others they can,t.God forbid they get sick and have no insurance.Now you know why there are so many people on social services they have low income housing,bus passes,heating rebate they have insurance I don,t blame them for not wanting to work for min. Wage they can,t make ends meet.So why don,t government let the people work for min.wage and subsidize rest of their income to a decent salary.

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  • Username
    billy
    - August 9, 2012 at 11:47:14

    "The Canadian Federation of Independent Business says hiking the minimum wage is not the best way to help Newfoundland and Labrador’s low-income earners". Tell this to the low-income earners, I'm sure they will agree.

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