Alberta's minimum wage earners rejoice over raise, but worry about long-term impacts

Wayne Doucethas a lot of reasons to celebrate these days.

He's about to bringhis wifeover from Vietnam and workingat his friend'srestaurant, Watercress Express,after an unsuccessful search for workin his plumbing field andhe just got a 70 centsper hour raise.

"It means I get paid more, I can afford things," said Doucet. " During this recession ...Ihave a job to put food anda roof over my family."

But he hesitates when he talks about how theraise, andother oneson the way as Alberta moves to a $15 minimum wage.Doucetwonders how itwill impact his employer.

• Minimum wage hike worries small business owners

"Ido care for the businessbecause he's my close friend.I want this business to exceed in all means of perspective."

And,friendship aside, success ensures Doucet still has a job.

Too much, too fast?

At $10.20 per hour,Alberta wastied with Saskatchewan forthelowest minimum wage in the country. Now that it's been bumped upto $11.20 per hour, it'sthe third highest.

But it doesn't stop there.Rachel Notley's NDPGovernment plans to raise it to $15 per hour over the next three years.

And its that long-term hike that has small businesses concerned, according to Amber Ruddy with the Canadian Federation of Independent Business(CFIB).

"Business ownershave been telling us it could result in them closing their doors, or it could result in the reduction of current staffing levels. The consequences are quite severe," said Ruddy.

The CFIB wantsprovince to monitor the effect of this initial increase before it announces anymore. It would also like to see the increasesphased in over a longer period of time.

Business can absorb the shock

On the flip side, the Calgary District Labour Council applauds the provincial government because it bringsAlberta closerto aliving wage model.

Spokesperson Alex Shevaliersays he looks to what happened in British Columbia when it raised its minimum wage from $8 to $10.25 per houra few years agoas proof it won'tput people out of businessor lead to huge job losses.

"The CFIBpredicted that B.C. would lose up to 800,000 jobs by increasing minimum wage 27 per cent,but in fact the opposite thing happened."

He says the unemployment ratedropped slightly.

"I think businesses areable to absorb the shockbecause its gradualand slow," said Shevalier."They'll simply either reorganize or increaseprice to deal with that pressure."

Consumers will pay

That's exactly whatthe owner of Watercress Express plans to do.

"Well I guess I have to bring up the price more, right?" said David Lam.

But he says that's not the easiest thing to do when he'salready fighting forcustomers in a competitive industryand a slowed economy.

With the minimum wage expected to continue to climb,he wonders just how much his customers will be willing to absorb.

"That's what I am afraid oftoo," said Lam.