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Prince Edward Island’s minimum wage will rise from $8.00/hour to $8.20/hour on June 1, 2009, and by a further 20 cents to $8.40/hour on Oct. 1, 2009.

Although staged increases in the minimum wage give employers some advance notice on rising labour costs, minimum wage hikes remain difficult for foodservice operators to absorb because of the labour-intensive nature of the industry.

In meetings with government, CRFA outlined the dramatic impact that any increases to the minimum wage would have on foodservice operators throroughout PEI. The province last raised the minimum wage on Oct. 1, 2008, and given current economic conditions, further increases couldn’t come at a worse time.
In an October 2008 submission to PEI’s Employment Standards Board, CRFA made the following key recommendations on behalf of the Island’s 340 restaurants, drinking places and caterers:

• Any increases to the minimum wage should be modest and introduced gradually (spread out over time, with adequate notice for operators)

• A wage differential for inexperienced workers should be introduced to recognize the employer’s investment in job training
   
• Similarly, a wage differential for tipped employees should be introduced to recognize the higher earning potential of tipped employees
   
• Government should increase the basic personal income tax exemption – an efficient, effective way to assist the working poor without negatively impacting job opportunites that could be compromised by minimum wage hikes

CRFA will continue to urge the PEI government to adopt the legislative changes recommended by the Employment Standards Board, which would allow for the introduction of wage differentials.