N.S. workers, business owners prepare for minimum wage increase

First at Five looks at how restaurants and those who work in them feel about the minimum wage increase and the expiration of the tax holiday.

With Nova Scotia’s minimum wage set to see an increase this year, the impacts could be seen across the board.

Minimum wage in the province currently sits at $15.20 an hour. The first-rate increase is 50 cents and is scheduled for April 1. The second will come into effect Oct. 1, bringing the minimum wage to $16.50.

Amanda Dregely, who works as a server in Dartmouth, N.S., says it’s a struggle to live on a minimum wage.

“I had to solely rely on minimum wage. Even with it going up, I don’t think I would be able to handle daily life, like, with kids and a mortgage and food. Food has been really hard to put on the table,” says Dregely.

Jessica Leclerc, a single mother and server, says she works three jobs just to keep up with the daily cost of living.

“We are lucky in this industry, like, the tips definitely help, the increase with my rent and the increase in my paycheques, it’s not keeping up. I mean, I am on my own and I am paying almost $2,220 a month and then all my other bills on top of that. It just really doesn’t make ends meet,” says Leclerc.

The Nova Scotia restaurant industry currently employs 32,000 people.

“People are struggling so we fully understand the need for fair and appropriate wages, without a doubt. On the impact side with that business side, what’s been happening with our industry, the restaurants in particular, is they have been under so much fiscal pressure so really any increase, obviously it’s impactful,” says Natasha Chestnut with the Restaurant Association of Nova Scotia.

Restaurants Canada says these wage changes will have a large impact on increased labour cost for restaurants.

“It’s servers, bartenders that typically earn the minimum wage. You need more front of house staff than you need back of house. So, it does increase labour costs significantly for our industry. For workers in other areas, I think it will help them keep a roof over their heads, and food on the table, but the reality is if operators need to absorb the increase of the 7.4 percent in labour costs, they will have to pass that on, somebody will have to pay it at the end of the day,” says Janick Cormier Atlantic Canada vice president with Restaurants Canada.

“Fifty-three percent of our members are currently operating at a loss or barely breaking event, any additional costs to operating will result in bankruptcies and closures and reducing hours of operation because they can’t afford to pay the labour. It is a big increase for us and unfortunately that’s a cost that will most likely have to get passed on to consumers.”

Chestnut feels employers recognize people are struggling and do want to see them be paid fairly and adequately.

“Obviously there is a need to appreciate wages and operators get that. Anytime you are increasing wages, someone needs to cover it. A lot of times, rather it’s our industry, any industry, it’s not unlikely to see that the cost of products or services need to increase,” says Chestnut.

Chestnut that businesses are hesitant to increase prices.

“Talking to different operators, they are hesitant to do that and increase menu prices because then it’s not appealing to the consumer so it’s a tricky situation to be in for sure,” says Chestnut.

“The HST holiday actually came at a perfect time for our industry. January, February are typically very slow months and so it is helping add foot traffic in the door. If you have a $100 budget as a family, instead of paying 15 per cent on tax you might get that dessert or that appetizer that you have normally gone without,” says Cormier.

Restaurants Canada says with the added labour costs alongside the tax break coming to an end soon, it’s a double hit for some business owners.

“For us it is incredibly important that this HST holiday either be made permanent or at the very least be extended beyond that Feb. 15 end date because we have seen the benefits of it firsthand,” says Cormier.

There are some workers that are also worried about how the incoming changes could impact their bottom line.

“With the minimum wage going up, that’s great more money in our pocket, but at the same time, at the end of the day, it might also mean our hours will get cut so it doesn’t really even out,” says Dregely.

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