Restaurant owner vows to keep paying youth $15 an hour despite minimum wage change
'It creates a second class worker,' researcher says of wage disparity
Some business owners in Alberta have struggled to keep up with hikes in the minimum wage since the NDP started increasing it in 2015. But not everyone is ready to turn back.
The NDP raised the minimum wage from $10 an hour in 2015 to $15 an hour in fall 2018 for all workers, regardless of age or industry.
On Monday, the UCP announced several changes to provincial labour laws, including scaling back the wage for teenagers under 18 working part-time.
The government, arguing that hiking the minimum wage kills jobs, says businesses can pay youth $13 an hour if they work fewer than 28 hours a week.
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Andrea Olson, co-owner of Canteen on 124th Street, said she has no intention of scaling back the wages she and her husband, Frank Olson, currently pay their staff.
"I can't take away anything from our workers. We have wonderful, wonderful employees and I think the wage is completely reasonable," Andrea Olson said Tuesday.
Olson said it's been a huge adjustment paying a higher minimum wage over the past couple of years. Canteen cut staff by 25 per cent last year and closed for lunch.
Now that they have adjusted the minimum wage, Olson doesn't plan to go back.
"I can't imagine now to have hired someone at $15 and now say, 'Well I can pay you less so I'm going to' — for the same work, for the same expectations."
'I applaud it'
Ian Lee, an associate professor at the Sprott School of Business at Carleton University, said he's been advocating for a lower wage for youth for several years.
"I applaud it," Lee told CBC's Radio Active. "Every province should do it regardless of political party."
Lee, who dropped out of high school in Grade 12 and held minimum-wage jobs for three years before going back to school, said entry level jobs help young people gain experience, knowledge and responsibility.
"They don't have a lot to offer," he said of youth workers. "The idea that they're equivalent to somebody who's been working for five years, six years or seven years, is just simply nonsense."
He noted that with higher labour costs, many companies have switched to a capital-driven approach, implementing changes like more automated checkout counters.
Alison McIntosh, a research manager with the Parkland Institute at the University of Alberta, said the changes mean businesses hiring lower wage workers will have a better bottom line.
"I don't necessarily think that should be viewed as a win," she said Tuesday. "It creates a second class worker."
McIntosh said the move erodes the rights of workers.
"It really undermines equality between people who are all doing the same job — if you have some people on a shop floor who are making $13 an hour and others who are making $15."
The UCP's Bill 2 includes changes to holiday pay and overtime banked hours. If the bill passes, bosses won't have to provide holiday pay to staff if they weren't scheduled to work.
The legislation would also replace NDP policy that allowed employees to take an hour and a half of time off for every one hour of overtime worked.
The UCP bill would change that to a straight hour of time off for every hour worked.
Restaurant and bar owners in Edmonton have called on the province to return to the liquor server wage, when servers making tips were paid a lower minimum than other staff.
That change isn't included in the proposed bill.