HALIFAX: Oct. 1 marked the second increase to the minimum wage in one year, which is disconnected from the formula currently set out by the minimum wage regulations of CPI plus one percent each year.
“While the current methodology of how minimum wage is set in our province is imperfect, it did give a clear picture of how the rate will be set in the future,” said Duncan Robertson, Director of Legislative Affairs for Nova Scotia at the Canadian Federation of Independent Business (CFIB).
“With ongoing economic uncertainty driving up costs and driving down optimism, the government must commit to ending the practice of ad hoc increases, particularly the practice of two increases in one each, which compounds a significant cost for employers.”
According to CFIB research, over one in three (35%) small businesses in Nova Scotia have employees making minimum wage on their payroll.
However, close to six in ten (58%) say increases to the minimum wage rate result in increased wage levels across all wage levels.
Story: N.S. increases minimum wage
ADVERTISEMENT:
CFIB research also shows that over half (52%) of small businesses across Nova Scotia cannot absorb this significant increase and must increase prices to keep up.
“The business environment over the past year has been turbulent and unpredictable. From tariffs, supply chain disruptions, and a tourism season impacted by wildfires and construction, this new cost increase is coming at a very difficult time for SMEs in our province,” said Robertson.
“Small businesses need minimum wage rates to be set in a way that is affordable, considerate of resulting economic effects, and predictable, not set by party platforms.”
CFIB is calling on government to make their minimum wage policy more transparent and considers the economic realities facing small businesses by:
- Committing to yearly increases that follow the methodology set by the Minimum Wage Review Committee.
- Consider amending the current methodology to reflect the rate of increase in the median wage
- Clarifying which economic indicators were used to justify today’s increase.
