The province's announcement that minimum wage will rise by 50 cents this fall is being greeted with support from workers while some small businesses fear it will take a toll.
The increase will take effect on Oct. 1 and bring the minimum hourly rate to $9.50 an hour.
Anna Huard is a restaurant server and says the increase is good news for workers.
"It means I can probably afford groceries," says Huard.
"I'm working two jobs right now and going to school full time so it really is quite hard to sustain myself since I'm not living at home as well," says Huard.
Haillie Coulombe, assistant general manager at Stella's Café, says the rise in minimum wage is a concern for small business owners.
"We have to up the prices and we might lose customers because every time that minimum wage goes up, we have to bump the price of our food to accommodate the payroll," says Coulombe.
Tony Siwicki, owner of the Silver Heights Restaurant, says the increase will cost his restaurant about $18,000 a year.
"We'll think twice about hiring any more people…you just got to juggle," says Siwicki.
Shannon Martin of the Independent Business Federation says the impact will be felt.
"On rare occasions, you are going to see some businesses shutting their doors…it has been a tough year for a lot of businesses," says Martin.
Martin also questions why the government is freezing the salaries of its own employees, while asking businesses to increase wages.
The province counters that raising minimum wage will have a positive effect.
"I'm confident that this wage increase is going to help the people who earn the least and help them continue to spend money in the economy, which helps the economy overall," says Jennifer Howard, the province's minister of labour.
The province says that while the minimum wage increase does raise the cost for businesses, the government will be eliminating the small business tax in December.
Manitoba currently ranks in the middle of the pack nationally for minimum wage rates, behind Newfoundland, Ontario, Saskatchewan and Nova Scotia.
- with a report from CTV's Karen Rocznik
