| The Chamber of Commerce for Greater Moncton (CCGM) is concerned by the New Brunswick government’s sudden and ill-timed announcement they are increasing the minimum wage by $2 per hour in 2022. “We acknowledge we have the lowest minimum wage in Canada and that every citizen deserves an opportunity to earn a decent wage,” Chamber CEO John Wishart said. “However, we are concerned by the lack of consultation with business and the impact on SMEs who are struggling to recover from the pandemic.” The New Brunswick Minimum Wage Report issued by the province in May 2021 provides some valuable context to the minimum wage discussion. The report notes that in 2020, New Brunswick had the second lowest percentage of employees earning minimum wage (5.0 per cent) in Canada, behind only Saskatchewan (3.1 per cent). It also notes that 15,000 New Brunswick wage earners received minimum wage in 2020. Of that number, 37 per cent were between the ages of 15 and 19 and 52 per cent lived with their parents or other family members. Of those 15,000 minimum wage recipients, 54 per cent were part-time workers. The cascading impact of raising wages across the province, will create wage increases for all employees, which will be difficult for business to absorb. As the business community has explained to governments for years; timewise, business needs a long runway to adjust to any significant increase in costs. The Employment Standards Act, Sec. 10(2), calls for a review every two years and requires consultation with employers, and the province has, in the past, held an extensive consultation process around minimum wages and had been following the Consumer Price Index (CPI) to set that rate. The Chamber urges government to continue this extensive consultation model before implementing these increases. “We take issue with the tone-deaf timing to the ongoing struggles of business that this decision exposes. The timing of this significant increase could not be worse for those sectors of our economy most affected by COVID. This will negatively impact the restaurant, bar and hospitality industry most severely just when they are trying to bounce back from 20 months of calamity. We are still in the middle of a global pandemic; is this really the best time to dramatically increase labour costs?” Wishart added. This government has often recognized that the private sector creates economic growth and jobs, and it is undeniable that policy decisions have significant and tangible impacts on private-sector economic growth, therefore we would suggest their actions follow suit. “Our ask is simple: Consult. Consider the implications and impacts on business growth. Take a beat and plan this better. Work with the business community to find solutions that include a combination of minimum wage increases and tax changes that improve the lives of workers while also protecting businesses”. added Wishart. The CCGM urges the province to make greater efforts to work with SMEs on their recovery so they can employ as many New Brunswickers as possible moving forward. CCGM will continue to represent the interests of its members on this issue. -30- |
| For More Information Rebecca Preston Director of Communications & Policy Chamber of Commerce for Greater Moncton 506 856-4004 | 506 888-0826 comms@ccgm.ca |