Alberta stands firm on $15 minimum wage by 2018 despite pushback - Action News
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Edmonton

Alberta stands firm on $15 minimum wage by 2018 despite pushback

Alberta Labour Minister Christina Gray is standing firm on the province's plan to increase the minimum wage to $15 an hour by 2018.

Restaurants Canada launches online campaign to extend province's 2018 timeline for wage hikes

Alberta is standing firm on the province's plan to hike minimum wage to $15 an hour by 2018, despite pressure from the restaurant industry. (Elaine Thompson/Associated Press)

AlbertaLabour Minister Christina Gray is standing firm on the province's plan tohikethe minimum wage to $15 an hour by 2018, despite growingpressure from the restaurant industry.

Gray was responding to a campaign byRestaurants Canadaurging the province to delay plans to hike the minimum wage by the end of the government's first term in office.

The grouplaunched a campaign Thursday called Not The Timethat asksthegovernment to restructure its plan.

"I have to say this is exactly the time for a fair wage because all Albertans deserve a livingwage," Gray said in a telephone interview Friday."We've got too many hard-working people and hard-working parents struggling to make ends meet."

Restaurantsnot preparedto eat extra cost

The campaign encourages Albertans to send a pre-written emailto their MLA stating theplan to raise the minimum wage is well-intentioned, but it will hurt workers if implemented too quickly during a recession.

"We're not saying we're not going to get to $15 an hour, eventually we're going to get there,"saidMark vonSchellwitz, Restaurants Canada'svice president for Western Canada.

"But imposing a 50-per-cent increase in just three years ... during a recession is just too much, too fast right now."

Schellwitz saidthe sluggisheconomy means fewerpeople are spending money at restaurants, so there's little room to raise menu prices. As a result, some businesses would have to cut hours or lay off staff to affordhigher wages.

"When sales are good and the economy is strong we're far better able to absorb any significant minimum wage increases," Schellwitz said.

Acut-back in hours hurts those workers who rely on earninggratuities to supplement their wages, he added.

The Restaurants Canada campaign includes a petitionand half-a-dozen formal consultation meetingsplanned inJune. Schellwitzsaidhe hopes it will be enough to change the province's course on wage hikes by the end of the month.

Campaign not to everyone's taste

At least oneEdmonton-areabarista saidshe wouldn't sign her name to that petition.

Ellie W., who asked not to be fully identified to avoid repercussions from her employer, makes $11.80 an hour at Starbucks.Alberta's current minimum wage is $11.20 an hour for most workers and $10.70 for those serving liquor.

With 20 hours a week guaranteed in her contract, Elliesaidher monthly paycheckis barely enough to coverliving costs and the gas she needs to drive to work. Gratuities add up to about $10 a week, once the extra cash is sharedbetween employees at the coffee shop.

ForEllie, ahigher minimum wage promises"that little bit extra for a feeling of security."

The 19-year-old plans to start a university degree in September. Butshe'll needstudent loans because herincome barely makes a dent in tuition, she said.

"It would mean I don't have to stress every month about whether I'm working over 30 hours a week, or not to be sure that I am able to cover my living costs and I'm able to save some of that for school as well," she said.

Consultations ahead

Approximately 59,000 Albertans earn minimum wage, according to the Alberta Labour department. Almost half of those employees work full time, and more than two-thirds have permanent jobs.

Gray saidshe wants to work in partnership with businesses to raise the minimum wage at a realistic rate. That's why Alberta Labour is engaging in ongoing discussions with businesses,include stakeholders from Restaurants Canada.

"They'll absolutely have a place at our table," Gray said."We are focused on meeting our goal of $15 an hour by 2018, but we want to do that in a way that works for everyone."

The province's plan to take the sting out of the higherminimum wageincludes tax exemptions for small businesses and subsidized student employment programs for young workers.

Alberta's last minimum wage hike happened in October 2015. Gray saidthe provincewill give businesses at least three months notice before the next increase, although no firm date has been set.

She notedRestaurants Canada does not represent all workers in Alberta's food service industry. The group is "definitely animportant stakeholder, but isn't the only one in that sector," she said.

Ellie W., for one, saidshe doesn't feel represented by the Restaurants Canada campaign as it overlooks food service workers such as herself who don't earn high gratuities.

"I don't think it's fair," shesaid. "People who don't have to worry about having to live off this much money don't understand."