Small Businesses the Most Hurt by Minimum Wage Increase: CFIB

Small Businesses the Most Hurt by Minimum Wage Increase: CFIB

Canadian Money
(Canadian currency image via Shutterstock)

Thursday’s minimum wage hike in Manitoba is coming with a warning from the Canadian Federation of Independent Business.

The CFIB says small businesses will be the hardest hit by the move, as many already operate with razor-thin profit margins.

“Manitoba small business confidence is hovering at a five-year low, yet the provincial government continues to ignore the economic realities they face,” said Elliot Sims, CFIB’s Manitoba provincial affairs director.

The province’s wage increases by 30 cents per hour to $11. Ontario, Alberta, Saskatchewan and Newfoundland and Labrador are also raising minimum wage tomorrow.

“There are more effective ways to help low-income Manitobans than simply higher minimum wages. The government should explore these avenues – like reducing taxes on low-income workers and helping them upgrade their skills – before they price employees out of jobs, and entrepreneurs out of business.”

The CFIB says despite some suggesting employers are wealthy and can afford to pay more, Statistics Canada data shows that for every Canadian employer that earns more than $250,000, there are five who earn less than $40,000 — less than the average teacher’s salary.

“This is about your local grocer and your hair dresser. These are the kinds of people who will be hurt by once again increasing the minimum wage.”

Over half of Manitoba minimum wage earners are under 25-years-old.