Minimum wage has gone up, but for some, it won’t make a difference

Manitoba’s minimum wage went up to $8.50 per hour on April 1 – and it was no April Fool’s joke.

But for some, the wage increase won’t make much of a difference to their lives.

“I already make more then the new minimum,” said Maddie Braun, 18, who works at Tall Grass Prairie Bread Company at 859 Westminster Ave.

“But if I were at a job where I made the minimum, a 50-cent increase would make a huge difference.”

Who will the wage increase be affecting and who will benefit from it?

“Not many people work for minimum wage these days,” said Dave Angus, president and CEO of the Winnipeg Chamber of Commerce (WCC).

“Because of the skill shortage, companies can’t get away with paying a lesser wage. For those that do work for minimum, about 50% of them are 15 to 24 years old. And many of them are going to school and they use their jobs to supplement their income.”

Angus said the WCC is not against raising the minimum wage. However, he is upset his organization wasn’t consulted about the change.

“The government didn’t give anyone any advance notice. They just went ahead and did it,” he said.

While 50 cents may not seem like much, Angus said the wage increase will be costly for some businesses, especially in the hospitality industry

Peter Paley, owner and manager of the Oakwood Cafe on Osborne Street, doesn’t see it that way.

“People work hard for their money. I think it’s fantastic that (minimum wage) has increased,” he said.

“And I’ve adjusted my menu prices to cover the new expenses.”

Paley also believes the increase won’t really affect his serving staff, as payouts in tips offsets their regular pay.

Labour and Immigration Minister Nancy Allan said in a press release that the increase will help lower-income earners cover their day to day needs.

“This government has made improvements to the minimum wage on an incremental basis to bolster the purchasing power of minimum wage earners and improve the lives of working people and their families while respecting the ability of employers to pay,” said Allan.