P.E.I. minimum wage freeze pitched by industry

The Prince Edward Island government should consider freezing the minimum wage for workers who are in training, according to a restaurant industry association.

Luc Erjavec, the Canadian Restaurant and Foodservices Association's vice-president in Atlantic Canada, told a legislative committee studying the future of the Island's minimum wage policy that more wages put a strain on his clients.

'We have never suggested rolling anybody's wage back. What we are suggesting is: freeze the wage at the current rate.' Luc Erjavec, Canadian Restaurant and Foodservices Association

"The real issue with our industry is profitability is getting lower and lower," Erjavec said Friday.

The P.E.I. legislative committee is looking at changing the minimum wage system and has held a series of public meetings to gather ideas. The province's hourlyminimum wage is $8.40.

The province recently passed legislation that could see different "classes" of employees, which would likely mean those in training and in the service industry would be paid less.

Erjavec said the last 50-cent an hour increase in minimum wage cost the industry $2.3 million.He said the industry fears another increase would cause more financial pain.

So the industry association is proposing the provincial government freeze the minimum wage for workers who are in training.

"We have never suggested rolling anybody's wage back. What we are suggestingis: freeze the wage at the current rate. And when minimum wage goes up, you just freeze it where it is currently," he said.

The industry association is also recommending that servers who sell alcohol and receive tips should stay at $8.40 an hour, arguing they would see a larger wage in the end.

Unfair idea

But some students are not convinced that the restaurant association's idea is fair.

Mark Bernard told the committee of MLAs that it is unfair to consider tips as part of a person's wages.

"You will have those waiters who get about $150 a night waiting on people, but then you'll get some nights where you will only get $20 a night waiting on people," Bernard said.

The committee also heard that some students who have service industry jobs in the summer are concerned they would likely fall into that lower wage category of being trained every year even if they aren't new to the industry.

Many students say living on P.E.I.'s minimum wage, which is the fourth lowest in the country at $8.40, is hard enough. If it were to go even lower, they would be in trouble, they say.

They also said that the tips aren't as good as many in the business industry would like the public to believe.

There were other concerns voiced by presenters who worry about how the definitions of work experience may vary by employers.

"I'm a student at the age of 46, my stepdaughter is a student at the age of 16," Susan Thomas told the committee.

"Am I to understand that if I were to start a job at McDonald's I would get less than her because I would be deemed inexperienced?"

The committee still has another three meetings scheduledin order to give all 50 interested parties a chance to speak before the politicians make their recommendation on the minimum wage policy.

By comparison, New Brunswick announced in January that it would raise its minimum wage to $10 per hour by Sept. 1, 2011.