It's a dangerous game to play Keeping up with the Joneses.
Unfortunately, it appears this may be the motivation behind the B.C. government's decision to increase minimum wage even higher than was originally anticipated. The bulk of the argument for another increase to B.C.'s minimum wage this September is to avoid being the bottom rung of the ladder. After tomorrow, even New Brunswick will surpass B.C. with their scheduled minimum wage increase from $10.30 to $10.65 per hour, making us the province with the lowest minimum wage in Canada at $10.45.
But not for long.
'April Fools!' should be the intro to the new directive of the B.C. government. "You believed we would index future minimum wage increases to inflation, as measured by the Consumer Products Index (CPI), because that's what we told you. Ha, ha! Instead, we've decided to consider a heftier increase because the economy is so strong."
Penalizing business for growth? Seems a bit capricious and also unfair to businesses, considering Jobs Minister Shirley Bond was quoted in March of 2015, when referring to the decision to link future minimum wage increases to the CPI, "It will provide certainty for business in British Columbia."
It doesn't seem so certain now.
As wages generally make up the bulk of most businesses' annual budgets, it is improper of the B.C. government to suddenly move the goalpost. Giving businesses three to five months to find a way to come up with extra revenue in order to cover the unanticipated increase to wages is simply not enough time.
It isn't just about increases to minimum wages, either.
Many studies show that bumps to minimum wage have a ripple effect, causing higher-paying positions to increase too. While it may be true that the B.C. economy is showing overall resilience and strength, there are many businesses that are barely hanging on. All it takes is a bureaucratic change to legislated expenses and the local clothing boutique or bookstore is forced to close their doors.
But I get it.
Being dead last brings unwanted attention and a title of shame.
It is much easier to avoid public scrutiny when you are somewhere in the muddy middle.
I am quite certain this is where the B.C. government would be much more comfortable. Rather than the anticipated increase to minimum wage of about 10 cents per hour in September, B.C. could camouflage themselves in the middle of the pack with a 25- to 30-cent increase instead.
While the actual increase amount will not be made public until this spring, I'm venturing to bet it will be at least double what businesses anticipated, placing us right around a 20-cent increase or more.
And that's no joke, April Fools or not.
Until next week, stay in the black and keep coming back.
