Shawnee Love   •  
March 18, 2011

If your full time employees are earning BC’s current minimum wage, they have made approximately $16,640 per year before taxes over the last 10 years. As of May, they will get a raise to $8.75/hr and as of November 1st, if Christy Clark’s minimum wage increase to $9.50 occurs, that same employee will be earning $19,760 per year. Wow, that is an 18.75% increase in one year!  Yikes, an 18% increase is only $3,120!

Rent, utilities, transportation and food easily cost more per month than what someone can earn on minimum wage, especially if there are kids in the family. Fortunately, I don’t know of many jobs that pay minimum wage anymore except for maybe fast food, lawn mowing, babysitting and some servers (although they hopefully get decent tips to top up their income).

No matter how long overdue and positive for minimum wage earners I think this increase is, I wonder what business owners who pay minimum wage are going to do. The money to pay the wages has to come from somewhere, and I only see 3 options for small business owners:

1. Take it out of profits (I am not holding my breath that this will happen much)
2. Reduce hours of employees to make up for 18% increase on minimum wages.
3. Increase prices on products and services to make up for the 18% increase on minimum wages.

What do you expect to happen?