File Photo (Image Credit: CFJC Today)

By Spencer Mielke

Minimum Wage

B.C. minimum wage hike has Kamloops employers feeling the pinch

Apr 7, 2023 | 10:30 AM

KAMLOOPS — With minimum wage rising by $1.10, many experts believe that the government have boosted the rate by too much. The question has come up on whether we should be adjusting minimum wage to the inflation line or the cost of living. Inflation has plagued British Columbia, as between gas and grocery prices the cost of goods and services are at an extreme high.

This increase is tied to B.C’s inflation rate of 6.9 per cent. President of Kamloops Chamber of Commerce Tim Shoults says the increase will be difficult for small business owners.

”We do recognize that minimum wages do need to go up over time, and the concept of indexing them to the cost of living is good,” Shoults told CFJC Today. “The problem is that they are looking at this one at a full rate average from last year, which means we are up 7 per cent. That is actually higher than the current rate of inflation which now has the potential of kickstarting inflation again.”

It’s good news for minimum wage workers as they will be getting a raise. Some staff in minimum wage jobs are excited to get a little more jingle in their jeans but restaurant managers like Jenn Inkster at Carlos O’Bryan are worried that the money will just get distributed elsewhere.

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“Every time there’s a big hike its got to be absorbed somewhere, and here it’s in the food and beverages,” said Inkster.

Shoults says certain businesses will have some decisions to make as many small shops may not have enough funds to manage the increase.

“Some of them will choose to hire fewer staff to try and make due in order to handle that pressure. Some of them will have to pass it on to their customers,” said Shoults. “We could see us paying for it at the till or when the check comes at a restaurant. And for some it could be the difference between a business being viable or not viable as well.”

With this increase B.C will have the highest minimum wage in Canada. But, there is still a ways to go for B.C families to earn a living wage.