The Cranbrook and Kimberley chambers of commerce are concerned about the announced pace and impacts of minimum wage increases coming in British Columbia, starting June 1.

The Cranbrook Chamber of Commerce is concerned about the impact of minimum wage increases announced Feb. 8 by the provincial government.

The increases begin June 1 with a jump to $12.20, increasing annually on June 1 until $15.20 is reached in 2021 – in little over three years.

“The chamber made a presentation to the provincially-appointed Minimum Wage Commission, when it visited Cranbrook. We had two asks. That, at a minimum, a five-year implementation period to $15 per hour be implemented to give our businesses time to plan and adjust to increases,” said Chamber Executive Director David D. Hull.  “And second, that legislation be enacted to index future increase to the Consumer Price Index to ensure stability and certainty.”

The Cranbrook Chamber of Commerce had joined the BC Chamber of Commerce, and their member chambers and boards of trade across B.C., in opposing a near term rapid rise in the minimum wage to $15/hour.

“A rapid rise in the minimum wage will put pressure on businesses’ bottom lines, which can result in having to cut jobs or cut down on employee hours in order to continue operations. These scenarios are not positive for employees, employers or the economy as a whole,” he said.

Hull is concerned that a rise in the minimum wage with push up through a company’s work force and render them unviable or uncompetitive. “Raising the minimum wage tends to ratchet up all wages through an organization, adding additional strains for businesses.”

The Kimberley & District Chamber of Commerce said it also expressed concerns in August 2017 with the current provincial government’s plan to roll out the minimum wage to $15 per hour by 2021, and it agrees with Cranbrook.

In working with other regional chambers and the BC Chamber of Commerce, a suggested a timeframe of 2023 be used to meet this initiative, and support small businesses in rural communities; allowing them to plan accordingly for this increase.

Today’s announcement of increasing the minimum wage from $11.35 to $12.65 / hour on June 1 with the overall goal of reaching $15.20/hour by 2021 suggests this government did not clearly understand the issues of small and medium size businesses in Kimberley, et al, a chamber media release noted.

“The economies of scale need to be represented equally – and it appears rural business owners’ voices were not represented in this decision.  Our membership is comprised of businesses that pay fair wages, and some will be affected more than others. We will continue to support and work with our members to identify solutions that will help affected businesses keep their margins viable, maintain the same level of staff, and ensure their hours of operation are unaffected,” the Kimberley Chamber stated.

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