Small business applauds proposal to delay minimum wage

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Minimum Wage: Reframing the debate

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Of further interest:

• Victory: Small business applauds proposal to delay minimum wage
• Highlights: Minimum wage hikes lead to job losses in New Brunswick

Moncton, July 20, 2011 Today's announcement that government is proposing to delay the planned September 1^st increase in the minimum wage for six months - until April 1^st - is being applauded by the Canadian Federation of Independent Business (CFIB) and the thousands of small, independent businesses that have been given some hope on spiralling wage costs.

"Small business owners across New Brunswick have voiced serious concerns about the negative impacts of minimum wage hikes on their businesses, staff and community," said Erin McGrath-Gaudet, acting Director of Provincial Affairs. "It took courage for government to listen to these concerns, factor in a changing economic environment, and determine a delay was in everyone's interest."

CFIB has met regularly with government officials and gathered "action alerts" from members calling on government to delay the September 1^st minimum wage increase.  To date, almost 500 action alerts have been collected from small business owners and delivered to Premier Alward and to Minister Coulombe, whose department is responsible for labour policy.

McGrath-Gaudet believes government can make good use of the intervening months by exploring different approaches to minimum wage, including differentials for tip earners and for employees new to the workforce - options CFIB supports.

She also added this is the perfect time to examine the impact of minimum wage increases on poverty and employment in New Brunswick and determine whether minimum wage has delivered what it promised: poverty reduction.

"All of the research we've collected shows that minimum wage hikes lead to job losses and can actually push more families below the poverty line," said McGrath-Gaudet. "This is not the outcome New Brunswick families or businesses want and inconsistent with public policy goals."

"This government deserves credit for doing what others have not - give itself time to fully examine the issue. In doing so, it's also given the business community some time to adjust."

For further information contact Erin McGrath-Gaudet at (506) 855-2526.

As Canada's largest association of small- and medium-sized businesses, CFIB is Powered by Entrepreneurs^TM. Established in 1971, CFIB takes direction from more than 108,000 members in every sector nationwide, giving independent business a strong and influential voice at all levels of government and helping to grow the economy.