CFIB 'urges caution' on future minimum wage rate adjustments

As Newfoundland and Labrador'sminimum wageincreases to $10.50 per hour,the Canadian Federation of Independent Business has urged "caution on future adjustments."

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Effective Thursday, every Newfoundland and Labrador employer has to pay their employees at least $10.50 an hour.

Government announced in 2013 that it would increase theminimum wage by 25 cents in 2014 and again in 2015.The move came a year after a review panel recommended the increases.

In a statement Thursday, the CFIBsaid "the provincial government must resistcalls for radical steps like those taken by the Alberta government, which has promised toincrease minimum wage to $15 per hour by 2018."

Vaughn Hammond, CFIB's Newfoundland and Labrador director of provincial affairs, said that between2005 and 2010, the minimum wage grew by twothirds.

"Many small businessesstruggled to adjust, and had to reduce hours, delay hiring or raise prices as a result," he said.

"Since that time, the provincial government has taken a more measured approach, givingbusiness owners ample time to adjust and plan within their operations."

The CFIB commended the provincial government for supportingmore low-income earners.

The federation said improved accessibilityto post-secondary education are initiatives that help low-income earners more than a largeincrease to minimum wage.

Hammond said when the minimum wage goes up, governments tend to take more, while low-income earnerskeep less.

"If the goal is to ensure low-income earners have moremoney in their pockets, the answer lies in the tax system rather than minimum wageincreases," Hammond said.

According to the Retail Council of Canada, the minimum hourly wage in the Northwest Territories is the highestin the country at $12.50,while New Brunswick is the lowest, at $10.30.