P.E.I. business owners readying for minimum wage increase

Minimum wage on P.E.I. is set to go up by 70 cents Friday, and that increase is getting a mixed reaction from the small business community whose payroll costs will rise. 

"I think you're always concerned about the bottom line, what my labour costs are, what my food costs are," said Ken Meister, owner of Holman's Ice Cream Parlour in Summerside. 

"This just adds on to what your expenses are going to be for another year."

Meister supports the increase, though nearly all of his staff earn more than minimum wage already. 

"It's important to raise that minimum wage so that people can have a good standard and quality of living," he said. 

Staff at the Greater Summerside Chamber of Commerce have been hearing a range of reactions to the upcoming increase. 

"The timing is very unfortunate for the businesses in the sense that they're in the recovery stage of the pandemic," said executive director Tara Maddix. 

She said many businesses in the tourism industry, which have already taken a hard hit due to COVID-19, are the ones most affected by the wage increase. 

When minimum wage goes up Friday, it will be $13.70 an hour, the highest in Atlantic Canada. It is still far from a living wage, however, which is estimated at $19.30 an hour for someone living in Charlottetown, according to a 2020 report by the Canadian Centre for Policy Alternatives. 

Green MLA Steve Howard raised that issue in the legislature Wednesday. 

"Let's start talking in terms of a livable wage. We could bring in a basic income guarantee," Howard said, while speaking about the high cost of living for Islanders. 

Howard called the pilot projects the P.E.I. government has run on a basic income guarantee "underwhelming."

Holman's employee Brye Caissie makes more than minimum wage, so the increase won't affect her as directly, though her wage will also rise.  

"It'll be nice, just as things go up, the cost of things in general, the cost of living goes up," said Caissie.