The Canadian Federation of Independent Business (CFIB) says the 5.56% hike in Quebec’s minimum wage that will take effect on Sunday will have a significant negative impact on the businesses of more than half of its members.
A CFIB calculation indicates that the hourly minimum wage that will be raised to $14.25 (an increase of $0.75) will impose an additional cost of $237.1 million on businesses already hit by cost increases .
CFIB Vice-President for Quebec, François Vincent, adds that the two years of health restrictions have left an average debt of $ 108,000 per small and medium-sized enterprise (SME) in Quebec as well as income below normal for a majority. between them.
A consultation by the Canadian Federation of Independent Business indicates that for 79% of its members, the best way to support them when the minimum wage is raised would be to reduce the overall tax burden, or, at 73%, to lower payroll taxes. On the other hand, 58% hope for tax credits.
The CFIB affirms that if the tax burden of SMEs were reduced, they would increase wage conditions in more than 70% of cases.
The Federation suggests more effective measures than a considerable increase in the minimum wage, in its opinion, to fight against poverty. It proposes an increase in the basic personal amount, improved work premiums or targeted tax credits that would directly benefit low-wage employees without creating additional pressure on already fragile SMEs.
The Canadian Federation of Independent Business says it has 95,000 members in all industries.
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