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Chamber of Commerce Concerened over Alberta Government’s Minimum Wage Increase

Jun 30, 2016 | 1:57 PM

LETHBRIDGE – Some workers may see a boost in their paycheque this fall, but that increase might not be a good thing in the bigger scheme of provincial business.

The province is taking steps to hike the minimum wage to $15 by 2018.

As of October 1st, 2016 the minimum wage will rise by $1 to $12.20 per hour, the first of three increases.

Weekly and monthly minimum wages used by certain industries will also rise to $486 and $2,316, respectively, during the hike.

The government has stated that the increases to minimum wage will move nearly 300,000 Albertans closer to earning a living wage and provide certainty to businesses.

However, Harry Gross, Lethbridge Chamber of Commerce President, said he doesn’t agree with the move, especially in a time of economic strife.

“It is very disappointing and in my opinion it is really going to hurt our businesses. From an employment side it will also hurt those with lack of training and skill sets. When you have a three dollar and hour increase, it starts taking away from business’s training dollars.”

The government wrapped up consultations regarding the changes; however, many industry groups have spoke out against the pay increase and voiced their skepticism in the hike’s ability to promote employment opportunities

Early this month, Restaurants Canada launched an online petition asking the government to postpone increases until better economic stability.

Gross said he has had many restaurant owners tell him that all of their profit would be lost with the recently announced the removal of the current liquor server rate, effective October 1st, 2016.

The Lethbridge Chamber of Commerce has sat down with businesses and discussed alternative business models.

Gross said that the Chamber has extended an invitation to the government to discussion recommendations and alternatives.