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Business groups calling for minimum wage increases

VANCOUVER (NEWS1130) – Support is growing in the business sector for those of you earning minimum wage to start getting regular pay hikes.

The concept has been endorsed by a couple of business groups in our province.

The idea is to tie minimum wage to inflation.

Greg D’Avignon of the Business Council of British Columbia says it would offer those on minimum wage small increases each year.

It would also prevent what he calls “rate shock” for businesses, by avoiding sudden steep increases. “That has significant implications in terms of an employer’s ability to hire people, because, as I said, moving from $8 to $10.25 is a significant jump on a percentage basis.”

The Business Council and the BC Chamber of Commerce make the recommendation as part of a larger report that looks at how to create more prosperity in the province.

However, Jim Sinclair of the BC Federation of Labour doesn’t support the call. “And the reason we don’t support that is because you would be indexing poverty, because the wages are so low now at $10.25, that they don’t even reach the poverty level.”

He wants the province to hike the minimum wage to $12 an hour within the next year-and-a-half.