Businesses that now pay close to $12.50 per hour may face impact down the road

Andrew Livingstone
Northern News Services
Published Thursday, January 29, 2015

INUVIK
Most of Inuvik's biggest employers don't foresee a planned increase in minimum wage across the territory to have any effect on their bottom line.

It was announced earlier this month that the territorial government will increase minimum wage on June 1 this year to $12.50 per hour, one of the highest in the country. And while this may impact employers in larger centres across the territory where minimum wage jobs are more readily available, business managers and owners in Inuvik aren't bothered by it.

John Turner, manager of Shivers restaurant in the Mackenzie Hotel, said his staff makes more than the current minimum wage, and may even be close to, or above, the planned increase.

"It's hard to keep employees at minimum wage," said Turner. "I don't even know where you'd go to get a minimum wage job in this town. Starting wages are a lot higher."

Turner said if there are minimum wage jobs in the town, it would be hard to prevent staff turnover when there are so many employers paying more to keep quality staff on board.

"You can get a job for (more than minimum wage) so why would you take a minimum wage job?" he said, adding if you're willing to work hard you can get a job working on the Inuvik to Tuk all-weather road project for far more than a base wage.

Newton Grey, general manager at Capital Suites, said the new wage won't impact him immediately because his staff make more than the increase already. He said this is this case because in order to keep quality staff, you have to pay more for people to be able to live comfortably.

"The area is expensive to live in and therefore people who are working need to make more to maintain their standard of living," said Grey. " The people who pay more need to charge more to survive and on it goes. If you don't pay people a living wage, they aren't going to stick around. With Capital Suites we have a good product and if you pay peanuts you get elephants. You don't get good people."

Grey said because the government pays so much, businesses have to pay more or they'll lose staff due to the lure of more money.

He added that the increase may impact businesses that pay close to the planned $12.50 per hour minimum wage later on.

"Those who are paying $13 an hour, they may come under pressure to put more distance between what you pay and the new minimum wage," he said. "It wouldn't be immediate but over time."

The increase by the territorial government was based on findings from the Minimum Wage Committee, appointed by Education, Culture and Employment Minister Jackson Lafferty in 2013 to research, engage community organizations and businesses and provide options for the minimum wage rate in the NWT.

"We all want to lead successful and prosperous lives," Lafferty said in a recent news release. "We all want opportunities that enable us to take care of our families and support our communities. And we all want to be fairly compensated for our work."

The move to increase the minimum wage is part of an ongoing effort by the territorial government to ensure they have opportunities, possibilities, and a fair wage."