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Students, immigrants most
likely to be affected by wage hike

Elizabeth McMillan
Northern News Services
Published Friday, February 5, 2010

SOMBA K'E/YELLOWKNIFE - The people making the least will be earning a little more this spring as minimum wage in the NWT is increasing for the first time in seven years, but the majority of businesses won't be affected.

Jackson Lafferty, minister of Education, Culture and Employment, said high school students and immigrants are the people most impacted by the change.

He said there was little feedback about minimum wage before the economy tanked, but the department consulted close to 80 employers last summer. He said the majority already paid higher than the minimum wage.

The hospitality and tourism industry will be the most affected by the minimum wages hikes, according to Lafferty.

He announced the minimum wage will be going up to $9 per hour April 1, and to $10 the following spring in the legislative assembly on Tuesday.

The minimum wage has been at $8.25 since 2003.

"Some people didn't know (the minimum wage) was still $8.25 ... it's been seven years, we feel it time. We're the third lowest within Canada, even though we have the highest cost of living here. We're behind the eight ball," Laffery said in an interview.

Wendy Bisaro, Frame Lake MLA, who has been lobbying for the change for two years, called the move "music to my ears."

But the change won't have an effect on the majority of businesses in the city, said Patrick Doyle, president of the Yellowknife Chamber of Commerce. He said he hasn't gotten much feedback because the minimum most businesses pay is already much more than minimum wage.

"The more industrial and main industries in town, it probably won't affect them at all," he said. "A lot of employers already far exceed that pay scale."

Doyle said a few companies in the service industry, and business that still pay part-time employees and summer students the minimum, will be affected.

He anticipates that people will notice a change in prices.

"It'll increase (businesses') costs somewhat and that's usually passed on to the consumer. You could possibly see a raise on certain items. I don't think the impact will be great."

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