Media Release
March 17, 2011
For Immediate Release

  Absorbing minimum wage increase will create significant challenges for retailers

- Retail industry calls for further consultations following May 1 increase -

Vancouver, Mar 17 –

Following the B.C. government’s announcement of a minimum wage increase, retailers would like to see a pragmatic, deliberate and measured approach to future minimum wage increases taking into account the strain that the proposed condensed timeline will put on the sector. A 25 percent minimum wage increase in the span of just over a year will create significant challenges for retailers and fails to recognize the concerns and previous recommendations of the retail community. Retail Council of Canada and Shelfspace, two of the largest retail sector associations in B.C. representing an industry that employs more than 300,000 workers in the province, is calling on the government for further and more expansive consultations following the first minimum wage increase in May 2011.

"As retailers face these significant increases over the next year, we believe further consultation is needed to ensure government understands the impact on B.C’s largest source of jobs," said Shafiq Jamal, VP, Western Canada, Retail Council of Canada. "Retailers firmly believe in fair wages for workers in the province. Our concern is with the size and timing of the increases, which significantly impacts the ability of retailers to focus on job creation and investing in the local economy."

Retail’s success to-date in B.C. has been driven by increased investment, strong consumer demand, and sensible and focused policy and regulation by the provincial government. The unintended consequence of the government’s aggressive increase may actually hurt the very workers they are trying to help. As payroll costs rise, retailers’ ability to invest in jobs is diminished. Employers will need to take a hard look at the impact on their payrolls and review issues such as employee hours and full versus part-time employment.

"The wage increase timelines are aggressive and difficult for retailers to integrate with the first increase happening in just over six weeks," said Mark Startup, President & CEO of Shelfspace. "This is particularly difficult for retailers as the end result is a ‘ratcheting-up’ effect on employees already being paid above the minimum wage leaving less for merchants to invest in their own business."

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For more information, please contact:

Shafiq Jamal, VP, Western Canada, Retail Council of Canada 604-683-7706 sjamal@retailcouncil.org

Mark Startup, President & CEO Shelfspace, The Association for Retail Entrepreneurs 604-730-5252 mark@shelfspace.ca

As your advocate, Shelfspace keeps you informed on the issues of the day, including the current state of minimum wage in BC.

BC Budget 2011 Consultation: Retail industry Submission to the Select Standing Committee on Finance and Government Services

Recommendations made by the Select Standing Committee on Finance and Government Services (November 12, 2010)

Other resources:

Time has come to raise B.C.'s minimum wage: committee (Vancouver, November 13, 2010)

Coalition of BC Businesses Op-Ed Submission to Vancouver Sun (July 7, 2010)