B.C. Labour Minister Harry Bains arrives at the start of the debate at B.C. Legislature in Victoria, B.C., on Monday, June 26, 2017. The minimum wage in B.C. is going up on Monday, rising to $14.60 per hour from $13.85. THE CANADIAN PRESS/Chad Hipolito

B.C. Labour Minister Harry Bains arrives at the start of the debate at B.C. Legislature in Victoria, B.C., on Monday, June 26, 2017. The minimum wage in B.C. is going up on Monday, rising to $14.60 per hour from $13.85. THE CANADIAN PRESS/Chad Hipolito

Minimum wage goes up June 1 in B.C. as businesses face COVID-19 challenges

The minimum wage jumps by 75 cents to $14.60 an hour on Monday

British Columbia’s lowest paid workers get a pay increase Monday with a scheduled minimum wage hike at a crucial time for small businesses as they look for ways to continue operating during the COVID-19 pandemic.

The increase is part of the government’s pledge to implement a $15 per hour minimum wage by next year after a decade of no increases from 2001 to 2011.

The minimum wage jumps by 75 cents to $14.60 an hour on Monday.

Labour Minister Harry Bains said the government understands the pressures facing employers during the pandemic, but workers are also struggling.

“We’re all going through some very challenging times, no doubt about it,” he said in a recent interview.

Bains said the B.C. government’s $5 billion pandemic plan includes tax breaks and tax deferrals for businesses, and a $1.5 billion economic recovery fund. He said the federal government has also introduced wage subsidies for employers.

“Now, as much as ever, I think B.C.’s lowest paid workers also need support,” said Bains. “It’s not fair to ask them to delay their wage increase.”

READ MORE: B.C. businesses ‘can’t shoulder burden’ of COVID-19 sick pay

But Prof. Andrey Pavlov at Simon Fraser University’s Beedie school of business said the government should forgo the minimum wage increase and allow market forces to determine rates of pay.

The pressures of the pandemic should be viewed as an opportunity to explore economic initiatives that don’t involve regulated minimum wages and government subsidies, he said.

“I’ve never been a fan of minimum wage increases because I believe wages should grow on their own through economic growth,” said Pavlov.

The minimum wage increase during a period when many businesses are struggling to survive the pandemic could be the final blow that results in them closing, putting people out of work, he said.

“Now, most businesses are thinking of shutting down or moving or restructuring in very substantial ways and you add that on top, it could be just the catalyst that pushes many businesses over the edge,” Pavlov said.

READ MORE: Pandemic-related restaurant closures take an emotional and financial toll

Iglika Ivanova, a senior economist at the Centre for Policy Alternatives in B.C., said the province is an expensive place to live and life has become more difficult for low-wage workers because many have been laid off.

She said most people earning the minimum wage were not able to work from home.

“Many lost their jobs during the lockdown phase of the pandemic, and now we’re starting to reopen a number of them will be called back and I think it’s important that they actually earn decent wages,” Ivanova said. “We’ve known for a long time that the minimum wage was too low in B.C.”

READ MORE: B.C.’s essential grocery, hardware store employees should get pandemic pay: retail group

Statistics Canada reported B.C.’s unemployment rate in April increased to 11.5 per cent, with almost 400,000 lost jobs since March.

B.C. has eased some restrictions, allowing restaurants, hair salons and dentist offices to reopen but with physical distancing rules in place, businesses have taken cautious steps to restart.

Labour Ministry data shows 60 per cent of people earning the minimum wage in B.C. are female and 93 per cent of minimum wage jobs are in the service sectors, including cleaning services, grocery stores and restaurants, Bains said.

Quebec increased its minimum wage on May 1. Minimum wages in New Brunswick, Newfoundland and Labrador, the Northwest Territories, Nova Scotia, Prince Edward Island and Yukon increased on April 1.

Dirk Meissner, The Canadian Press


Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

British ColumbiaCoronaviruseconomyMinimum Wage

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

The route of the pink parade. The Record has blackened out the name of the teen. Facebook photo.
Pink-vehicle parade to be held Sunday in support of transgender teen assaulted in Mission

Teen and family to watch parade drive single file along waterfront at 3 p.m., Jan. 17

The Anti-Racist Coalition Vancouver started a petition calling on B.C.’s education officials to make Black Shirt Day official. The inaugural event in solidarity with Black and racialized Canadians takes place on Friday, Jan. 15. (Screenshot/Change.org)
Mission School District holding first-ever Black Shirt Day in support of anti-racism on Friday

Growing calls to designate Jan. 15 a day devoted to ongoing civil rights struggle

Two people were in a vehicle that rolled over on Highway No. 1 near Lickman Road. They are now out of the vehicle. (Jenna Hauck/ Chilliwack Progress)
Vehicle rolls over on Highway 1 near Lickman Road in Chilliwack

Two people in SUV at time of collision in westbound lanes

Screenshot from video.
2 students arrested in assault of transgender girl at Mission middle school

Mother said daughter was targeted because of how she identifies

The Sts’ailes Community School in the winter of 2019. (Grace Kennedy/The Observer)
Sts’ailes Community School to extend online learning until Feb. 8

The Sts’ailes First Nation remains closed to visitors

Health Minister Adrian Dix and provincial health officer Dr. Bonnie Henry head for the press theatre at the B.C. legislature for an update on COVID-19, Jan. 7, 2021. (B.C. government)
B.C.’s COVID-19 spread steady with 509 new cases Friday

Hospitalized and critical care cases decline, nine deaths

Seasonal influenza vaccine is administered starting each fall in B.C. and around the world. (Langley Advance Times)
After 30,000 tests, influenza virually nowhere to be found in B.C.

COVID-19 precautions have eliminated seasonal infection

Prime Minister Justin Trudeau listens to a question during a news conference outside Rideau cottage in Ottawa, Friday, January 8, 2021. THE CANADIAN PRESS/Adrian Wyld
Trudeau says Canada’s COVID vaccine plan on track despite Pfizer cutting back deliveries

Canadian officials say country will still likely receive four million doses by the end of March

Jobs Minister Ravi Kahlon shared a handwritten note his son received on Jan. 13, 2021. (Ravi Kahlon/Twitter)
Proud dad moment: B.C. minister’s son, 10, receives handwritten note for act of kindness

North Delta MLA took to Twitter to share a letter his son received from a new kid at school

Lilly and Poppy, two cats owned by Kalmar Cat Hotel ownder Donna Goodenough, both have cerebellAr hypoplasia, a genetic neurological condition that affects their ability to control their muscles and bones. Photo by Alistair Taylor – Campbell River Mirror
VIDEO: Wobbly Cats a riot of flailing legs and paws but bundles of love and joy to their owner

Woman urges others to not fear adopting cats with disabilities

Chief public health officer Dr. Theresa Tam provides an update on the COVID-19 pandemic in Ottawa on Friday, Jan. 8, 2021. THE CANADIAN PRESS/Sean Kilpatrick
Canada’s top doctor says to avoid non-essential travel as B.C. explores legal options

Premier John Horgan says he is seeking legal advice on whether it can limit interprovincial travel

The Delta Hospice Society operates the Harold & Veronica Savage Centre for Supportive Care (pictured) and the Irene Thomas Hospice in Ladner. (The Canadian Press photo)
Fraser Health to evict Delta Hospice Society, open new hospice beds next door

Health authority will serve DHS 30 days’ notice when service agreement expires Feb. 25

Martin Luther King Jr. addresses the crowd during the march on Washington, D.C., in August of 1963. Courtesy photo
Government reinforces importance of anti-racism act on Black Shirt Day

B.C. Ministers say education “a powerful tool” in the fight for equity and equality

Black Press media file
Port McNeill driver tells police he thought the pandemic meant no breathalyzers

Suspect facing criminal charges after breathalyzer readings in excess of 3.5 times the legal limit

Most Read