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New data reveals impact of big minimum wage hikes on small business
Calgary, June 28, 2017 – New data released by the Canadian Federation of Independent Business (CFIB) shows almost three-quarters (72 per cent) of Alberta business owners say there is a negative impact on their business from raising the minimum wage to $15 an hour by 2018.
According to calculations by CFIB, a business with five employees faces an increase of $46,645 in labour costs over a two year period while a business with 20 employees would shell out $186,579 more over two years if they are able to maintain staffing levels.
“Thousands of dollars in higher labour cost without any change to the products or services being produced leaves hardworking entrepreneurs in the lurch. Where does the government think a small business owner is going to get that kind of money?” said Amber Ruddy, CFIB’s Director of Provincial Affairs for Alberta.
When asked, “What type of impact do you expect raising Alberta’s minimum wage rate to $15/hr by 2018 will have on your business?”
“If becoming a small business owner is such an easy way to earn a living, I challenge anyone not satisfied with their current job to try their hand at entrepreneurship,” said Ruddy.
CFIB has long advocated for more effective poverty reductions measures including targeted tax relief and skills training for low income earners seeking advancement.
The control web accessed survey was conducted in January and February 2017 and received 1,077 responses from businesses across Alberta.
To arrange a media interview with Amber Ruddy, please call 1-866-444-9290 or email [email protected].
CFIB is Canada’s largest association of small- and medium-sized businesses with 109,000 members across every sector and region.