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One in three small business owners make less than $15 an hour
VANCOUVER, September 15, 2016 – To coincide with today’s 40 cent increase in the minimum wage by the BC government, the Canadian Federation of Independent Business (CFIB) released new survey results that clearly show the negative effects on small business growth and employment from hiking the floor on wages.
“Many business owners, especially those in the service sector, operate in highly competitive markets and on razor-thin profit margins. Obviously, they will have to make lots of adjustments inside the business, including cutting jobs and hours, in order to accommodate such a large jump in payroll costs”, stated Richard Truscott, vice-president of BC and Alberta.
Recent CFIB analysis of Statistics Canada data shows approximately one-in-three business owners effectively earn $15 an hour or less, compared to one-in-five paid employees. The incomes of business owners in the hospitality and retail sectors were even more modest.
“The knee-jerk impulse to force employers to pay higher wages for entry-level jobs may make the politicians feel like they are doing something, but it may actually do more harm thangood.,” added Truscott. “When you add that to a potential CPP payroll tax increase, it’s easy to see why many small businesses are seriously worried.”
CFIB recommends the provincial government help working Canadians move into better paying jobs through access to education, more effective training programs, and useful information about where higher paying jobs exist.
CFIB is Canada’s largest association of small- and medium-sized businesses with 109,000 members across every sector and region, including 10,000 in B.C.