$15 minimum wage worries many businesses, new study shows

A new survey of more than 1,500 Alberta businesses suggests an increase in the minimum wage will result in fewer jobs and cuts to workers' benefits.

The Alberta Chambers of Commerce says almost half the businesses it surveyed indicated the new minimum wage will cost them less than $10,000 a year. The price tag for 17 per cent of businesses would be between $10,000 and $25,000. Meanwhile, 5.5 per cent said they will be out more than $200,000 a year if minimum wage goes up.

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Premier Rachel Notley announced recently her government would raise minimum wage to from $10.20 to $15 an hour by 2018.

Ken Kobly, president and CEO of the Alberta Chambers of Commerce, said small and medium-sized businesses are most concerned.

He said many are worried about a number of issues: "Whether they're going to be able to continue to operate, what the effect is going to be on their prices, if they're going to have to increase their prices. He also said there may be "upward pressure" on workers who are currently being paid higher than minimum wage.

The survey included over1,500 responses from more than 100 communities across Alberta this month.

"If the provincial government's goal is to reduce poverty, a higher minimum wage is not the most effective approach," said Kobly in a news release.

He said workers whose wages go from $10.20 to $15 an hour will lose things such as the child tax benefit, the GST credit and the working income tax benefit. In the end, the federal government will be the one that benefits, the ACC predicts.

Rather than receiving $9,600, for example, the ACC's analysis shows a single parent with one child would receive only $6,900 more after the claw-backs and increased taxes, while the federal government would receive nearly $2,700 in higher taxes and reduced benefits.

"It puts the burden solely on the backs of businesses and does not result in an additional $9,600 for low-wage earners," Kobly said.

The ACC advocates solutions such as more moderate minimum wage increases, plus increased government support for low-wage earners through theAlberta Family Employment Benefit,already in place.

The organization says that would keep more money in the pockets of low-wage workers and make the burden more equitable for everyone.

The organization would also like to see an employer-employee representative committee to research and review alternative solutions in the future.