A 25-cent increase to New Brunswick’s minimum wage is being met with backlash from a number of sides, as employee advocates are underwhelmed while business lobbyists think there’s a better way.
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On April 1 the province’s minimum wage will go up to $11.25.
It will mark the fourth increase in the rate since the current government took office.
But the organization Fight for $15 Fredericton is unhappy about the increase saying it stops short of the government’s stated goal of supporting families and low-income workers.
“This small increase by minimal cents that they do every few years, I don’t think is enough,” said Abram Lutes, chair for the organization. “It’s nice that we’re getting an increase at all but it’s too little and we feel much too late.”
He adds he doesn’t think the current minimum wage in the province is a living wage.
Fight for $15 believes adding a small amount to a worker’s hourly pay sounds like a supportive move but in reality, it does little to actually help those that need it most.
“A 25-cent increase for a full-time worker would only result in $10 extra a week,” explained Maddy Hogan, who also represents Fight for $15. “It’s definitely not enough to significantly change your life.”
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The Canadian Federation of Independent Business (CFIB) has a slightly different take on how the province should support its low-income earners: tax them less.
“It’s the wrong policy,” said Louis-Philippe Gauthier, CFIB’s provincial director.
“Government right now, both provincial and federal, collect over $2,400 in taxes from minimum wage workers. The question is why?”
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By taking less from workers’ paycheques, Gauthier says the province would be providing their own support rather than pushing the responsibility onto business owners who are forced to bear the brunt when wages increase.
“There’s a lot of room that government would have from a fiscal perspective. Unfortunately, they’re not taking that approach,” he said.
“The totality of the increases are going to be paid by small businesses.”
In a statement, the provincial government said, “The government made a decision to increase minimum wage annually to the corresponding increase in the New Brunswick Consumer Price Index (NB-CPI).”
“Ensuring that future minimum wage increases are indexed to the New Brunswick CPI will provide predictability and help businesses plan for their future. It will allow employers as much time as possible to adjust to the costs of any increases and pass the wage increase benefits along to non-minimum wage earners. It will also ensure that the purchasing power of minimum wage earners keeps pace with general increases in the costs of goods and services.”
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