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There has been a drastic increase in the minimum wage for the employees in Alberta. On October 1st, 2016, there was a hike done in the minimum wage. It was increased by a dollar and is now $12.20 from $11.20.
This hike in the wage is a concern for the Restaurateurs in Alberta. There has been a downfall in the economy of Alberta from the past two years that has led to a huge number of people out of work. The unemployment rate has gone up high and with this hike in the wage, it is expected to go higher as there is no room to increase the prices when the sales environment is at a downfall. Many restaurateurs are said to reduce the number of hours of the servers to manage the wage. Last year when the wage price was increased by a dollar, Ms. Echino, who runs a high-end restaurant in Alberto, had to cut down the number of hours of her staff. She is planning to cut them further after the new hike done on Saturday.
If reports are to be believed, the minimum wage of the province shall be $15 per hour by the year 2018. The government, however, is of the view that the hike in the wage will be helpful for the Albertans as it will help them to afford the basic necessities like rent and groceries. Few of the workers feel this hike will be transformative for them.
Many workers stated that the hike will help them to improve their quality of life. However, even then it is difficult for them to make both ends meet.
The wage hike decision by the government has come at a very difficult time. The unemployment rate is above 8% and more than 50,000 jobs have been lost since the oil rates have started dipping from past two years.