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Mixed opinion on UCP minimum wage plan

Cochrane workers and business owners have mixed opinion on the United Conservative Party's minimum wage platform If elected, the UCP has indicated it will seek to reduce Alberta’s minimum wage for employees under the age of 18.
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Cochrane workers and business owners have mixed opinion on the United Conservative Party's minimum wage platform

If elected, the UCP has indicated it will seek to reduce Alberta’s minimum wage for employees under the age of 18.

The wage cut is part of the UCP’s Open for Business Act, which aims to lower costs for employers and as a result increase youth employment rates.

The act also includes plans to repeal rules on statutory holiday pay and reintroduce a lower minimum wage for liquor servers.

Kenney also plans to freeze minimum wage to prevent further increases.

Other parties have not announced their stances on Alberta’s minimum wage yet. However, The Alberta Party position statements promise that the party will “grow Alberta’s entrepreneurial innovations culture and business climate.”

The New Democratic Party (NDP) implemented yearly increases to minimum wage, which brought Alberta from having one of the lowest minimum wages at $10.20 in 2015 to the highest minimum wage in the country at $15/hr as of 2018.

The increase was introduced to create a living wage for the adults and families that live off minimum wage.

Currently, living wage for Calgary is calculated to be $17.70/hr for 2018, according to Vibrant Communities Calgary.

Some people believe that it’s wrong to be cutting anyone’s wages while the cost of living continues to increase.

“That’s not a good idea,” said Kham Magar, supervisor at Winks convenience store.

“Look at the [price of] pop and how much it was and how much it is. Everything is going up now.”

However, some small businesses say the rapid increase to minimum wage in the past few years has been particularly hard.

"It's been tough," said Kyle Heier, restaurant manager for Half-Hitch Brewing Company.

The Half-Hitch brewery has been open since June of 2016, with the restaurant having opened in the beginning of 2017.

Raises in minimum wage over the two years of operation have increased costs for the restaurant by about $20,000 according to Heier.

Half-Hitch has reduced the number of employees they have, as well as looked into changing suppliers for products they buy for the restaurant.

"We've been going through every effort to cut costs," said Heier.

A minimum wage cut is also seen as a positive for the business, which does employ some underage staff in their kitchen.

"People that age aren't typically living on their own," said Heier.

However, when hiring for a liquor serving establishment, wages aren't the only factor that come into play.

"It's about finding the best workers for those positions and versatility is key," said Heier.

Minors cannot legally serve liquor and are therefore restricted to back of house duties in an establishment like Half-Hitch's.

While business owner see the cut as having benefits, youth workers say it could also put a financial strain on youth who often have bills to pay.

“A reduced minimum wage for me would mean needing to take on more hours at work in order to pay for necessities like a cell phone bill and gas to go school and after-school sports and extracurricular commitments and, should the gas gauge permit, social outings with friends,” said Georgia Hargreaves-Kessler, youth council member for the Boys and Girls Club of Cochrane and minimum wage worker.

Hargreaves-Kessler added that teens typically pay a higher rate for car insurance than adults and lower wages would reduce their ability to cover that cost.

Hargreaves-Kessler sees no justification for a minimum wage pay gap to exist between minors and adults.

“There is no reason why an underage individual should be paid less for doing the same job and quality of work as an adult.”

Lowering wages could also affect future prospects for youth in addition to their current circumstances.

“We have a dishwasher. She’s 16. She’s trying to save for college,” said Nancy Lallier, server at the Texas Gate Bar & Grill.

Lallier, who has been a server there for the past two years, added she has not noticed a loss of tips or hours as a result of the minimum wage increases.

Although she enjoys having more money in her pocket, Lallier sympathizes with small business owners.

“For corporate businesses it’s fine [but] these little store owners are trying to make a buck but they can’t afford labourers,” said Lallier.

Some businesses believe a lower wage is justifiable given that young people don’t stay with a company for very long.

“They usually work part-time and short term. They’re not very stable,” said Wendy Zheng, manager for Winks.

“If an employer is looking for a long-term employee then employees under 18 are not good for them.”

Tuesday, April 16, is the official date for the provincial election. Advance polls run from April 9 to 3.

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