On June 1, the provincial government raised its minimum wage to $16.75. In just eight years, B.C. went from having one of the lowest minimum wages, at $10.25 per hour in 2015, to one of the highest. The increase is… contentious. Minimum wage workers are happy to see a pay bump, while businesses fret over increased costs. The extra cash should, in theory, go straight back into the economy, but where and how it’s spent matters. If instead of going to the local café, it goes into Shein’s deep pockets, then it’s just another expense for local businesses to incur — and ultimately pass onto consumers.
Restaurants have been especially hard hit. The ones who survived the COVID-19 lockdowns by hastily contracting with food delivery services; investing in personal protective equipment; installing plexiglass barriers; erecting ramshackle outdoor dining spaces; operating at reduced volume; fighting for limited takeout supplies; and desperately trying to conjure up willing employees. Even before this wage bump, small businesses had already taken on a number of new costs, like employer-paid sick days, increased WorkSafeBC premiums, a new employer health tax, and a new provincial holiday. Anyone who can’t understand the concerns of small business owners should take a moment and try.
Of course, inflation hits the people on the bottom rung the hardest. The B.C. Liberal government showcased just how poor a strategy it is to leave the minimum wage stagnant for a decade — but we must have a serious conversation about what the goal really is. According to Living Wage for Families BC, a living wage for Metro Vancouver is now $24.08 per hour. That’s a far cry from the new minimum of $16.75 — a $7.33 discrepancy. In 2019, when the minimum wage was $12.65 or $13.85 (depending on when you measured it), the living wage was $19.50. The gap is not shrinking — it’s widening.
If you work full time at minimum wage and lease a one-bedroom apartment in Abbotsford, nearly two-thirds of your take-home pay is going towards rent. Between 2015 and 2019, rental prices increased by an average of 34 per cent. A one-bedroom unit that was $1,245 in 2020 is $1,499 today. It’s no wonder that tipping culture has completely blown up — we’ve turned the service sector into an industry of panhandlers — and who can blame them?
The businesses that survive will adapt. Some will use new AI; others will offshore because remote work from home can also be done from Bangladesh. Grocers and oil giants will keep gouging their customers. Workers above the minimum will advocate for more cash too — especially unions and employees who’ve seen a surging wage gradually subsume years of raises and promotions. Meanwhile, those on the margins will go on in a Gatsby-esque delusion — believing “in the green light, the orgastic future that year by year recedes before us. It eluded us then, but that’s no matter — tomorrow we will run faster, stretch out our arms farther… And one fine morning —”
Long ago, when DeLoreans roamed the earth, Brad was born. In accordance with the times, he was raised in the wild every afternoon and weekend until dusk, never becoming so feral that he neglected to rewind his VHS rentals. His historical focus has assured him that civilization peaked with The Simpsons in the mid 90s. When not disappointing his parents, Brad spends his time with his dogs, regretting he didn’t learn typing in high school.