Marigold Enterprises CAO Donna Geertsma, left, stands with employees Arden Orosz, centre, and Michael Loyie, as they carry boxes.

Government applauds move but business is not convinced

Richard Froese
South Peace News

Several local business owners and leaders fear the increase in the minimum wage to $15 an hour will do more harm than good.

The wage rose by $1 to $12.20 an hour on Oct. 1.

“It affects everyone,” says Tracy Sherkawi, president of the High Prairie and Area Chamber of Commerce.
“It doesn’t make sense that the NDP government would raise the minimum wage to the highest in Canada in what is a recession in Alberta.”
Different businesses will approach it differently, she adds.
“I imagine some businesses will lay off people in this economy,” Sherkawi says.
“Some will lower the number of hours for employees. Some will increase the prices of good and services,” she adds.

Administration at Marigold Enterprises in High Prairie fears it could put that operation out of business.

“My concern is that the government is saying we have to pay more but they won’t give us any more money,” says Donna Geertsma, chief administrative officer.
“When we get up to $15, the agency may not be sustainable enough for us to be in business.”

Marigold is funded by the ministry of Human Services for Persons with Developmental Disabilities.

PDD funds programs and services to help adult Albertans with developmental disabilities to be a part of their communities and live as independently as they can.

Marigold currently has 10 halftime and 10 fulltime staff and nine people under PDD.

Both the provincial PDD board and the Alberta Council of Disability Services are working with Marigold and other similar operations to seek support from the government, Gertsma adds.

Another business owner questions the government’s plan to increase the minimum wage that will rise to $13.60 on Oct. 1, 2017 and to $15 on Oct. 1, 2018.

“The rate the NDP is pushing it down our throats at such a rapid increase is ridiculous because the economy can’t support it,” says Helen Carriere, owner of Shell Snack and CARR Wash in High Prairie.
“The economy can’t support such a steep increase in such a short time.”

She says the minimum wage is so high it will strongly affect small businesses.

“I know some business owners who say they are squeaking by in the current economy, so how can they afford the increase?” Carriere says.

The NDP government is putting thousands of businesses and jobs for Alberta’s most vulnerable at risk by passing regulations to make increases to the minimum wage during one of the worst economic downturns in decades, the Official Opposition Wild- rose states in a news release Sept. 13.

“By making it even more costly for employers to create jobs, the NDP has completely abandoned its duty to do no further harm when Albertans are already hurting,” says Wildrose Leader Brian Jean.
“Instead of supporting low-income families, this government has put their jobs in jeopardy and Albertans are rightly worried.”

Alberta Chambers of Commerce and the Canadian Federation of Independent Business are also deeply concerned at the increase.

In a survey by the CFIB, 26 per cent of respondents agreed they will reduce the hours of staff and 26 per cent would cut down on the numbers of employees with the wage at $15 an hour.

As well, 89 per cent disagreed that governments should increase the minimum wage during economic downturns due to negative business reaction.