The idea of a $20 minimum wage isn’t sitting well with business leaders, who believe such an increase could exceed $1 billion, hurting small businesses and putting pressure on real estate prices.
This calculation, conducted by the Canadian Federation of Independent Business (CFIB), based on the number of hours worked at the minimum wage in 2022, would cost employers $1.09 billion in additional costs.
“The labor minister’s decision to increase the minimum wage, which will be made soon, must aim for balance,” said François Vincent, vice-president for Quebec at the CFIB, in a press release on Tuesday.
The 31% increase in the minimum wage will certainly have a negative impact on Quebec’s economy, according to CFIB. The CFIB is asking the Legault government to assess the impact of a significant increase in the minimum hourly wage to $18 or $20.
“Such an increase would result in a direct additional cost of $11,373 for an employer that employs a single full-time minimum wage person,” the CFIB official commented.
To better support them in raising the minimum wage, Quebec SME managers suggest reducing the tax burden (79%), reducing payroll taxes (73%) or offering employment credits (58%).
“The fragility of Quebec’s SMEs and the inflation context should be of serious concern to the Quebec government. It must look at both sides of the coin and avoid a drastic increase in the minimum wage,” Mr Vincent added.