We live in Canada, don't we?
Don’t judge a book by it’s cover. The NDP party has promised to increase the minimum wage from $10.85 an hour to $15 an hour in the upcoming Provincial election. Sounds great right? Wrong. When we dig a little deeper the impact will be uglier than you think. There are two business types to consider when determining who this will affect, the first is Canadian based medium to small size businesses, and the second is corporate giants with foreign ownership.
In the small to medium sized business everything comes down to bottom line, what are the costs associated with running your business verses the profits made by the business? With a minimum wage increase to $15 these businesses will be forced to reduce their staff to avoid breaking the bank on their bottom line and when push comes to shove those with the most experience will be kept and the young employees will be forced to find work elsewhere. If you think it’s frustrating to see companies wanting to hire employees with 3-5 years of experience just wait until there are even fewer local jobs and employers get their pick of the best resumes with the most experience.With one third of the population in Surrey being under the age of 19 the horizon looks bleak, but then again these young people can go work for a corporate giant…
The remaining work landscape is with the foreign owned corporate giants. This work force is increasingly becoming more Americanized by the day. With these companies being owned outside of Canada the profits being generated by these companies are getting shipped out of country and we’re not seeing the benefit of those dollars being reinvested in our communities. And with a minimum wage of $15 these entry-level employment opportunities are being formulated by algorithms to determine the minimum hours/wage payable to hire “part-timers” to avoid the obligations of full time employees. The end result? Young people will suffer the most. With part-time hours, financial goals will be harder to reach and with fewer jobs available and a larger work force, finding a job will be even harder.
Ask the right questions and do research before this election. Don’t be fooled by great sounding statements that will actually deliver hollow results.
For more information on this topic read this CBC News article.