REGINA – Government of Saskatchewan has announced that it will increase minimum wage to $10 per hour effective Dec. 2012, leaving foodservice operators to foot the bill.
“The contributions of Saskatchewan’s working population are essential to ongoing economic growth and prosperity in the province,” Labour Relations and Workplace Safety Minister Don Morgan said in a statement.
“This increase in minimum wage, together with the significant tax reductions our government has provided to low income earners, means that Saskatchewan will have one of the highest rates of take-home pay in Canada for minimum wage earners.”
Meanwhile, Canadian Restaurant and Foodservice Association has issued a statement saying that the decision was a major disappointment for the province’s foodservice businesses. “Unfortunately, government made this announcement without any meaningful consultation with the business sectors most impacted by its decision,” said Dwayne Marling, Manitoba-Saskatchewan vice president for the Canadian Restaurant and Foodservice Association (CRFA). “Imposing a 50-cent-per-hour minimum wage hike, effective Dec.1, will cost Saskatchewan’s 2,000 restaurant operators approximately $14 million. Government, on the other hand, will collect 15 per cent more in income tax from the average minimum wage earner.”
The increase is part of an overall review of labour relations and workplace safety legislation currently underway in the province and is also the fifth wage increase over the last five years.