'It's going to kill': Small business owner concerned about larger hike to minimum wage

The Manitoba government signalled on Monday that it will likely raise the minimum wage above the set increase planned later this year to keep up with inflation and the rest of the country.

While anti-poverty groups in the province say wages are too low and should go up by three or four dollars, one small business owner fears a large jump could force her to close her doors.

Gisele Manaigre is the owner of Beausejour Restaurant and told CTV News that inflation is eating away at her bottom line all while she is still trying to recover from the pandemic.

She said she doesn't need any other expenses.

"Our profit is very, very minimal. At the best of times, it is minimal; now it's even worse," she said.

She thinks a large minimum wage hike would force her to raise her prices and add to other business costs.

"Now the business has to pay more CPP, more EI, payroll, deductions, and that is very high on every business."

She added if a large hike were put in place it would also result in current employees asking for a raise as well because otherwise they would be compensated the same as a new employee.

"It ends up being a snowball effect when it comes to paying people's wages."

She doesn't disagree that people making minimum wage need help dealing with rising prices but she feels the government needs to come up with other ways to deal with that.

"Why not take some gas tax off? That would be a huge improvement for everybody…It would stop the inflation from skyrocketing. You aren't going to be charged extra shipping, you aren't going to be charged extra for groceries," she said. 

She also suggested offering food coupons for groceries or controlling rent increases, steps that she says would still bring down the cost of living.

Anti-poverty advocates and labour groups have been pushing for a $15 minimum wage for some time.

"We just know from the data that the minimum wage is simply too low to live on," said Molly McCracken with the Canadian Centre for Policy Alternatives (CCPA).

The CCPA said because of inflation and other costs, the living wage for low-income earners now is likely north of $16 an hour and it said many low-income earners were already using food banks before the pandemic.

"So we can only imagine now, during the pandemic, how much people are relying on handouts."

The province hasn't announced how much of a hike there will be to minimum wage, noting it will be consulting with labour and business interests first.

Manaigre said if it climbs to $15 or $16 that it would drive her business into the ground.

"It's going to kill. Ninety-five per cent of businesses cannot afford that. We just can't – not the small ones," said Manaigre.

She added she would be fine with seeing Manitoba moving to a minimum wage of $13, just like Saskatchewan plans to do later this year, noting the two provinces have a lot of similarities.

"I agree $11.95 for a living wage is ridiculous, especially with the inflation that is happening, but don't raise it $3 - $4 all at once. It's not going to work."

Manitoba's minimum wage is expected to increase in October from the current rate of $11.95 an hour. It is set to become the lowest minimum wage in the country when Saskatchewan moves to $13 an hour later this year.