Regina - May 3, 2022 – The Canadian Federation of Independent Business (CFIB) is disappointed that the Saskatchewan government both neglected to consult with the small business community before abruptly announcing plans to hike minimum wage by 27% over two and a half years and failed to announce any mitigating measures to help small businesses absorb the cost.
Today’s announcement comes on the heels of a budget that will see the small business corporate tax rate increase in both 2022 and 2023, along with a PST expansion that’s going to hurt many of the small businesses that were most heavily impacted by the pandemic. Small business costs are going up across the board, with SaskPower proposing rate hikes of 4.4% in both 2022 and 2023, Canada Pension Plan (CPP) and Employment Insurance (EI) premiums going up, and the pressures of pandemic-related debt, inflation, and supply chain disruptions.
CFIB’s latest survey data shows that less than half (42%) of Saskatchewan small businesses report being back to normal, pre-pandemic sales levels. It’s unfortunate that the Saskatchewan government failed to consult with the small business community or provide any advance notice of these changes. If the government had asked, CFIB would have told them that many small businesses are not in a position to take on additional wage costs right now, and that cost-offsetting measures, such as the introduction of a youth wage and liquor server wage, would have helped mitigate the impact of today’s announcement on struggling small businesses.
- Kathleen Cook, CFIB Saskatchewan provincial affairs director
The Canadian Federation of Independent Business (CFIB) is Canada’s largest association of small and medium-sized businesses with 95,000 members across every industry and region, including 4,300 in Saskatchewan. CFIB is dedicated to increasing business owners’ chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.