Low-income earners concerned about rising cost of living

Minimum wage earners are concerned about the rising cost of living after learning they have towait another year for a raise.

The provincial government says nearly 20,000 people in theprovince work for minimum wage, which will climb from$10 an hourto $10.50 by the fall of 2015.

Kristina Goughworks at two jobsto make ends meet, but said it's still not enough.

"Me and my boyfriend, we work together, and our rent is $1,200 a month, and it's just hard you know," said Gough.

"We've got a kid to feed.It's not enough to put food on the table, not enough to pay bills.So yeah, it's definitely not enough. I'm stressed out, tired ...and [there's] not enough time for friends or family."

Richard Alexander, executive director of the Newfoundland and Labrador Employers' Council, said the minimum wage increased by 67 per cent in the last five years andbusinesses cannotafford another hike.

"They would look at their balance sheets at the end of the day, and they would go from a situation of making a little bit of moneyto situations where they're losing money," said Alexander.

But St. John's business owner Dave Hopley said that argument doesn't add up.

"I don't buy it ...ultimately it's passed on to the consumer anyway," said Hopley.

He said while most jobs are entry level, hepays more than minimum wage.

"I'm kind of more on the lefty side of the economic spectrum, and I think people should be paid more of a living wage, than as little as we can get away with."

"Minimum wage used to be really low and I used to feel guilty about paying that little. But from an employee standpoint,if you pay slightly above minimum wage, maybe you feel you're entitled to a maybe better calibre of employee, something like that."