Have your say: PEI reviews minimum wage

(Nov. 21/11) The PEI government has initiated its annual minimum wage review. This is your opportunity to let government know the impact of minimum wage increases on your business. Send your comments:

By mail
Employment Standards Board
P.O. Box 6000
161 St. Peter’s Road
Charlottetown
PE, C1A 7N8

By email
hawalsh@gov.pe.ca

The high cost of labour
Labour already accounts for nearly a third of sales, and minimum wage rates have increased much faster than other economic indicators. Between April 2007 and April 2012, minimum wage is scheduled to rise 33 per cent while inflation is only expected to increase by 10 per cent. CRFA is urging PEI to introduce changes to minimum wage that recognize the unique nature of work in our industry and the province’s economic conditions.

CRFA’s key recommendations

  1. Follow the example set by New Brunswick and delay the next scheduled increase in minimum wage by six months.
  2. Introduce measures to put more money into the hands of lower-income earners by increasing the Basic Personal Income Tax Exemption.
  3. Introduce tip and training wage differentials:
    • Tip differential
      A tip differential is a lower minimum wage paid to servers in licensed establishments to recognize the significant income earned from tips. Both Alberta and British Columbia introduced a tip differential in 2011, while Ontario, Quebec and 37 American states have had them for years. A tip differential would freeze servers’ wage rates during the next general minimum wage increase. Wages would not be rolled back.
    • Training differential
      A training wage is a lower minimum wage paid to inexperienced workers to recognize training costs. This lower wage would be in place for the first 500 hours of employment. A training wage is currently in place in Nova Scotia and Ontario. Like the tip differential, the training differential freezes the minimum wage for inexperienced workers during the next increase in the general minimum wage.  Wages would be rolled back.

Click here (PDF) to read CRFA’s letter outlining our recommendations to Hazel Walsh of the Employment Standards Board.