The increase in Quebec’s minimum wage will take effect on Friday, rising from $16.10 to $16.60 an hour.
When he announced this 3.1 per cent increase at the end of January, Labor Minister Jean Boulet noted that 258,900 people would benefit from it.
At the same time, the tipped wage will rise from $12.90 to $13.30 per hour. This also represents a 3.1 per cent increase.
“In the current economic climate, it is important that the minimum wage evolves in a balanced manner. This increase protects workers’ purchasing power while allowing our businesses to remain competitive. It will also help encourage unemployed people to enter the labor market,” Minister Boulet stated at the time.
The Commission des normes, de l’équité, de la santé et de la sécurité du travail (CNESST) reminds employers that a worker cannot be paid less than the current minimum wage and that “the employer must pay a wage equal to or greater than the minimum wage, even if the worker receives certain benefits, such as a car or housing provided by the employer.”
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For the non-unionized worker fund (Fonds de défense des non-syndiqués), this increase is “paltry, while gas, grocery, and rent prices continue to skyrocket.”
“The new minimum wage will result in a disposable income of only $27,647,” the organization laments.
Labor unions and community organizations argue that a minimum wage of $20 an hour is needed to live with dignity.
For its part, the Canadian Federation of Independent Business (CFIB) asserts that small and medium-sized businesses do not oppose the minimum wage increase.
“It’s important to have a reasonable increase. And the way the government calculates this, conducts its consultations, and announces it in advance provides a degree of predictability for small and medium-sized businesses,” says François Vincent, the CFIB’s Vice President for Quebec.
If the government truly wanted to help SMEs, he says, it would help them cope with rising costs, particularly by reducing their tax burden.
The CFIB has calculated that this minimum wage increase alone amounts to $1,197 per year, including $157 in payroll taxes.
“The majority—three out of five—are people under 25 who work part-time. So, these are people who are generally still in school and who often still live with Mom and Dad,” he adds.
“The best way to fight poverty is to provide targeted assistance to those in need,” concludes Vincent.
–This report by La Presse Canadienne was translated by CityNews
