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Employers reflect on possible wage hike
No one makes minimum wage already, says Baffin Region Chamber of Commerce

Karen K. Ho
Northern News Services
Monday, November 23, 2015

NUNAVUT
Businesses operating in the territory say the proposal by several Nunavut MLAs to increase the minimum wage to $13 an hour from the current $11 doesn't reflect the current working reality.

"There's no one in town paying the minimum wage," Baffin Regional Chamber of Commerce executive director Chris White said. "Do you know anyone who is?"

White said it's almost impossible to hire people for $15 an hour in Iqaluit.

"Here, $20 is closer is the minimum," he said. "It's a totally different world."

And White said this is for non-government positions. For jobs with the City of Iqaluit or the Government of Nunavut, he estimated the minimum is closer to $25 an hour.

"Even an hourly position," he said, citing the experience of his children working at the city's day camp for $20 an hour. "And no, you're not getting a job at the day camp."

White acknowledged any increases in the minimum wage in southern provinces and cities means fewer profits for businesses or increased prices for customers. But he said things are different for business owners and operators in the territory.

"I think they've accepted that fact 15 years ago that they'll never pass it on," he said.

One of the largest employers in the territory, the North West Company, told Nunavut News/North in an e-mail that it supports the proposed Government of Nunavut legislation to increase the minimum wage from $11 to $13.

However, the written statement from president and CEO Edward Kennedy said the change wouldn't really affect his company's 866 employees working in 21 communities.

"All of our Nunavut associates already earn more than the current minimum wage," he stated. "We recognize the need for both minimum wages and income sup port programs to address the higher costs of living in the North faced by lower income families."

White said the territory's high cost of living and job market conditions are two of the biggest reasons for these wages.

"Company A knows they can't pay Joanne $15 an hour because they'll only have her for a couple of days," he said. "Someone will offer her $20. Especially if the employee is good, you might not even get a couple of days.

"They realize real fast what their value is."

White said people are less drawn to jobs in the territory for the type of work they're doing as much as the high wages they're making. And those earnings allow people to spend more, be it on living expenses or basic food items.

"It means you get a case of pop and a loaf of bread instead of just a case of pop," he said, adding that the case of pop is already $26 and four litres of milk are $10.99.

"Thirteen dollars an hour means you get two dollars left after you get the milk for your kids."

These kinds of prices and the general high cost of living in the territory are why Mona Godin of the DJ Specialties store gives her staff an allowance on top of their hourly pay.

"We offer more than the minimum wage to start," she said.

Godin, who is also president of the Iqaluit Chamber of Commerce, said the increase in the minimum wage would apply mostly to casual work, such as students working during the summer or unloading the sealift.

One place Godin sees the increase having a real effect on is the summer student grant program for businesses run by the federal government. Godin says the government only contributes half of the minimum wage amount, currently $5.50, even if she pays someone $20 a hour.

"That would make a big difference to small businesses," she said, adding that it would affect places like salons, day cares and cake shops.

Even if the change goes through, Godin doesn't see herself ever paying even the new amount to many of her student employees.

She estimated it already costs them $20 a day to come to work: $7 to take a cab each way and then $6 for lunch.

"You can't live on $13 an hour," she said.

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