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HRM CA | 02 Jul 2015, 08:00 AM Agree 0
The significant hike in hourly pay will no doubt affect businesses – but to what degree? Well, it depends who you ask.
  • Concerned business leader | 02 Jul 2015, 03:27 PM Agree 0
    How is it possible that only 39,000 people will be impacted? What they are referring to is those that are currently below $11.20 and will be raised up, but what about all the others that are at or around $11.20, that will no longer be deemed to be in a more valuable role than minimum wage. Have they really thought through all of the other impacts? Prices will increase, employees will be laid off, and I suspect many businesses will suffer a slow death as well. I agree that minimum wage needs to continue to move upwards, but why so much at once? Who else is getting 9.8% increases this year?
  • Rob Cairns | 03 Jul 2015, 04:43 PM Agree 0
    I think you are overestimating the psychological value of that $1.00/hour difference to the employee who makes $11.20/hour. The fact that both of these salary levels are significantly below what would be considered a living wage kind of puts a ceiling on how chuffed one might feel about their extra pay in my mind. It also explains why a higher increase in percentage terms is warranted. Over all, I believe this will be good for business and the economy, even if it requires a period of adjustment for some businesses. How do we expect a consumer economy to function when the consumers at the lower end of the salary scale don't have any discretionary spending ability?
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