| New Brunswick announces largest one-time minimum wage hike |
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(Nov. 14/07) The minimum wage in New Brunswick will jump from $7.25/hour to $7.75/hour on March 31, 2008. This marks the third rate increase announced since October 2006, and means the minimum wage will have jumped almost 16% in only 18 months.
Because of the labour-intensive nature of foodservice, repeated increases to the minimum wage make it difficult for business owners to grow their business and make further investments in their communities. Nearly 31 cents of every dollar spent at a restaurant goes directly to payroll costs.
Adjusted for menu inflation, foodservice sales in New Brunswick have fallen 4.8% so far in 2007, leaving operators with little financial flexibility to absorb yet another minimum wage increase.
In meetings with the government, CRFA outlined the need to provide employers with adequate notice of wage increases and recommended that any increases be incremental and phased in over a longer period of time, to allow business owners to adapt to rising wage costs. CRFA also called for training and tip differentials to recognize the significant cost of training new employees and the greater earning potential of tipped employees. |
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