Government pursuing wage inflation, not job creation
FOR IMMEDIATE RELEASE
May 24, 2011
WINNIPEG – The Saskatchewan government’s decision to raise the minimum wage to $9.50/hour in September – an increase nearly twice the Consumer Price Index – will once again hit small businesses and youth job creation across the province.
“Restaurants provide more first-time jobs than any other industry in Canada, and are a stepping stone to the broader labour force including thousands of opportunities within foodservice in Saskatchewan,” says Dwayne Marling, Manitoba-Saskatchewan Vice President for the Canadian Restaurant and Foodservices Association (CRFA). “Unfortunately the government seems to be pursuing a policy of wage inflation, not job creation.”
“Restaurant operators are already struggling with escalating food, energy and beverage alcohol costs,” says Marling. “A nearly 20% increase in the minimum wage in just four years hits an industry which is already operating on tight margins.”
Saskatchewan’s $1.8-billion restaurant and foodservice industry is one of the largest employers in the province. More than 32,000 people are directly employed in foodservice, including 13,600 young people under the age of 25.
CRFA is one of Canada’s largest business associations, with more than 30,000 members representing restaurants, bars, caterers, institutions and other foodservice providers. Canada’s $60-billion foodservice industry employs more than one million people in communities across the country.
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