PEI reviews minimum wage
(Nov. 11/08) In response to a minimum wage review in Prince Edward Island, CRFA outlined the dramatic impact that any increases to the minimum wage would have on foodservice operators throroughout the province.
In a recent submission, CRFA outlined the dramatic impact that any increases to the minimum wage have on foodservice operators throughout PEI. The most recent wage hike – which came into effect Oct. 1 – is expected to cost the industry $2.1 million in higher labour costs. Combined with slowing sales and the new February statutory holiday, a further increase in the minimum wage couldn’t come at a worse time.
CRFA’s key recommendations:
- Any increases to the minimum wage should be modest and introduced gradually (spread out over time, with adequate notice for operators)
- A wage differential for inexperienced workers should be introduced to recognize the employer’s investment in job training
- Similarly, a wage differential for tipped employees should be introduced to recognize the higher earning potential of tipped employees
- Government should increase the basic personal income tax exemption – an efficient, effective way to assist the working poor without negatively impacting job opportunites that could be compromised by minimum wage hikes
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