No Wage Hike: Chamber

by Contributed - Story: 28755April 14, 2007 / 10:00 am http://www.castanet.net/edition/news-story-28755-3-.htm#28755

The British Columbia Chamber of Commerce expressed serious concern over the Leader of the Oppositions call to increase the minimum wage to $10 an hour as bad for small business. The Chamber has also expressed concern that the commitment to cut the Small Business Tax Rate to 3.5% to offset this increase significantly underestimates the cost to small business of a 25% increase in the minimum wage level. “While the Chamber welcomes any call to reduce the tax burden on small business our members will not be fooled that the $72 million saving they will get from a reduction in the Small Business Tax Rate will help when they face an increase in labour costs of over $450 million,” states John Winter, President and CEO of the BC Chamber of Commerce. “Our members have told us again and again, you cannot increase small businesses labour costs by 25% and not expect to have a direct impact on their ability to hire and retain new workers.”

Small business have been clear that those that use the minimum wage do so based on their ability to pay and the experience and skills of the individual, indeed with such a strong labour market many sectors can no longer find workers at the minimum wage level. Given this reality the majority of the minimum wage jobs are starting positions in the service sector, reflecting the limited skills set required for these positions. “Employers recognize that the minimum wage is only a basis for an individual to enter the workforce, the fact is that less than 2% of individuals who have been in a job for more than five years are still paid minimum wage,” continued Winter. “While many think of workers on minimum wage as the “working poor” this image is far from reality. Close to three-quarters of those earning minimum wage are either part of a couple with a partner earning more than the minimum wage, or are young people and students still living at home. While we understand that there are individuals who find it difficult to get by this is a problem for society as a whole to address, it is neither fair nor right to use small business to pay for solutions to social problems.”
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Don Quixote Note: If the Provincial Govt. can differentiate between Big and small Businesses as to tax rate then why doesn't the 'Chambers of Commerce' and the DVA etc. demand the increase in the $10,000 exemption on property tax improvements so the municipality property tax is more fairly shared? This exemption has not been changed since its introduction in 1984. See Will the D.V.A., Chamber of Commerce or City Council stand up for the small businesman ???