The minimum wage will increase by one dollar on the 1is next May to go to $15.25 an hour, a “responsible” increase according to Minister Jean Boulet, but inadequate in the eyes of several groups.
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This 7.02% increase, the largest since 1995, is a “responsible and balanced gesture”, which should both improve the purchasing power of low-income people and respect the ability to pay of small businesses, argued the Minister of Labor during a press briefing at the National Assembly.
“Our minimum wage must be respectful and compatible with our economic situation,” explained Mr. Boulet, adding that this increase will allow the government to maintain its target of a ratio of 50% between the general rate of the minimum wage and the average salary.
For their part, employees paid with tips will see their wages increase by $0.80 to reach $12.20 per hour.
As for employees assigned exclusively to picking raspberries or strawberries, the minimum wage would be $4.53 (+$0.30) and $1.21 (+$0.08) per kilogram respectively.
Insufficient
Although this is the largest increase in the minimum wage since 1995, several groups consider it insufficient. The Collective for a Quebec Without Poverty accuses the government of being “disconnected from reality”, and sees in this increase a “form of contempt for the reality of workers.”
The opposition parties decried the measure, because of the inflationary context which, according to them, would have justified a greater increase.
“It’s a step forward, but it’s not enough to catch up with the inflation that Quebec is currently experiencing,” said Liberal MP Madwa-Nika Cadet.
“It’s $ 18 per hour minimum it takes to live with dignity in Quebec,” said the solidarity deputy Alexandre Leduc.
“It will never be perfect, retorted Jean Boulet. But it takes [augmenter le salaire minimum] in a progressive manner to avoid generating consequences which might be negative.
Small enterprises
According to Jean Boulet, a higher increase might have forced small businesses, already affected by the increase in interest rates, to lay off employees. However, Quebec claims on the contrary that a minimum wage of $15.25 an hour will encourage participation in the job market, in a context of labor shortage.
In fact, while it recognizes that the increase announced by the government is “reasonable in the circumstances”, other groups are concerned regarding the effect that this measure will have on several sectors of activity, which risk “having the difficulty of integrating this increase in labor costs”, in the words of the chairman of the Employers’ Council, Karl Blackburn.
“It can also be expected that, unfortunately, this will be reflected in the prices of the services and products available,” he added.
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