How do minimum wage increases in BC affect your business? For most businesses, this is not an issue, however, small retail businesses can be hurt by increased labour costs. Although some would argue against the planned rapid increases in the minimum wage in BC, it is a fact that this is currently the lowest minimum wage in our country. So, what are the biggest issues.
Most wages in BC are already above the proposed new minimum wages. There are feelings that the new increases will prompt employees to ask for increases based on the minimum wage increases. Based on past experience, this is generally not the case. In previous minimum wage increases, most wages do not increase. Although lower paid individuals may request an increase, their choice is either to accept what they are making or move to another organization. However, the competitive free market has already created a higher wage than minimum already, so it will be the market that will determine the price of labour. Given that, the increase in minimum wage should not have any significant increase in market rates for lower paying jobs.
In order to overcome these perceived challenges, organizations only need to ensure that they have a great work atmosphere for their employees. This will be discussed in a future blog, but, alas, there is no need to worry about the new minimum wage in BC.
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