(Quebec) The hourly rate for minimum wage workers will increase by $1 as of the 1er May, rising to $15.25 per hour. This increase is “responsible and balanced”, defends the Minister of Labor, Jean Boulet, while groups pressed the government to raise it to $18 an hour.
In a press briefing in Quebec, Mr. Boulet said that a greater increase in the minimum wage would have caused damage to the economy, risking harming SMEs or causing layoffs. Faced with the announced increase, small businesses are still imploring the Legault government to help them by integrating them into its “anti-inflation shield”.
“There are two criteria that I consider to be paramount: increasing purchasing power and respecting businesses’ ability to pay,” said the minister.
“Our minimum wage must be respectful and compatible with our economic situation. […] We want to ensure that the minimum wage is equivalent to 50% of the average hourly wage,” he added.
Tipped workers will see their wages increase by 80 cents to $12.20 per hour.
With a general minimum wage which will be set at $15.25 per hour as of 1er May, Quebec will be the third most generous rate in Canada, after British Columbia ($15.65) and Ontario ($15.50).
The increase announced Wednesday is “the most significant increase in current dollars that Quebec has experienced,” recalled Jean Boulet.
“That corresponds to a 7.02% increase. This is the highest percentage increase since 1995”, welcomed the Minister, recalling that 298,900 employees will benefit from it.
An insufficient increase
According to the Collective for a Quebec Without Poverty, this increase in the minimum wage in Quebec is insufficient to lift low wage earners out of poverty.
“We were asking $15 an hour seven years ago. We are behind reality, and reality says that people are unable to meet their basic needs, ”reacted Wednesday Virginie Larivière, spokesperson for the Collective.
“When citizens are forced to go to the food bank, but they have a job, there is a problem. The problem is even more glaring with the current inflation,” she added.
“Exploding” costs for SMEs
The Quebec vice-president of the Canadian Federation of Independent Business (CFIB), François Vincent, underlines the “pragmatic” nature of the increase presented Wednesday by Quebec, but warns that it will still harm small businesses that do not already have more leeway in the current inflationary environment.
“Quebec SMEs are seeing their costs explode everywhere and they are not included in the anti-inflation shield. There is a limit to what the small business can raise its prices. The more it raises its prices, the more it pushes the customer to reduce their consumer spending or to choose large American chains,” he said.
Mr. Vincent regrets that the government has not announced policies to help SMEs cope with inflation and the new increase in the minimum wage while companies have still not recovered from the consequences of the pandemic.