Minimum wage increase impacts businesses and employees

As of April 1st, 2023, Canada’s minimum wage has increased from $15.50 to $16.65 per hour.

This is the latest development in the country’s efforts to support its workforce, particularly those who are struggling to make ends meet in the face of rising costs of living.

Business owners, particularly those in the service industry, have expressed concerns about how the increase will affect their bottom line.

However, some business owners were not affected by the increase as they were already paying a higher than minimum wage to their employees.

“The minimum wage increase does not affect us in any way,” said Hayder Almaamor, owner of the barbershop Hair By Nancy & Hayder on Wyandotte Street West.  “As we get paid per customer, accordingly, we pay our employees fairly.”

Similarly, the previous owner of downtown bar and restaurants Primary Social Club and The Dugout Sports Lounge, Christian Pinard, shared the same point of view.

“We have always believed in paying our employees well, and we know that happy employees make for happy customers,” said Pinard. “So, we were already paying a higher wage plus we pay bonuses and incentives, so this increase does not affect us at all.”

For many employees who are earning minimum wage, the increase has come as a welcome relief.

“I am very happy about the increase,” said Abubacker Sultan, a Canadian Tire employee. “With the rising costs of living, it was becoming very difficult to keep up. But now, with the increase, I can afford to keep up with the price increases. It’s a huge relief for me and my family.”

However, not everyone was happy with the minimum wage increase as it did not benefit them all accordingly.

“I have been working at Canadian Tire for a couple of years now, and I have worked hard to get my pay bumped up,” said Amer Kadri, an employee at Canadian Tire. “But now, with the minimum wage increase, I am getting paid the same as someone who is just starting. I feel like it’s unfair to me, and it’s not a good incentive to work harder. Businesses should have to increase their pay to match since prices are increasing anyways.”

Overall, the minimum wage increase has been met with mixed reactions from businesses and employees alike. There are also concerns that the increase may lead to a decrease in incentives for employees to work harder and strive for higher pay. It remains to be seen how this increase will affect Canada’s workforce long term.

Considering these developments, the government of Canada has pledged to continue supporting workers and businesses across the country.

“The cost of living is rising, so we’re making sure that wages keep going up too,” said the Federal Minister of Labour Seamus O’Regan Jr. on the  Government of Canada website. “We’re looking after workers, because that’s how you grow the economy and create more prosperity for everyone.”