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Too little notice for the 2017 minimum wage increase

Talk of minimum wage often results in passionate arguments both for and against increases.  While most Islanders are paid above the minimum wage, increases to the rate can still be a challenge for some businesses once all the associated costs, like WCB, CPP and EI premiums, are factored into the equation.

With that in mind, CFIB has long advocated for a six month notice period before any increases are introduced.  This allows businesses time to set their prices and make necessary adjustments.  This is especially important considering increases have typically been well above inflation or economic growth.  For the 2017 increase, government had provided businesses with only 37 days notice.  This simply not a reasonable timeframe for implementation.  In the past number of years, government has either provided little advance notice of changes or has phased in changes over the course of the year to allow for more notice.  Given that this is a chronic challenge, the time has come to change the rate setting process to improve both transparency and predictability- something CFIB will be pushing for from government before next year's review.



On April 1st, 2017, minimum wage will increase from $11/hour to $11.25/hour.

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