| Minimum wage to rise in Newfoundland and Labrador |
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(Jul. 15/08) Newfoundland and Labrador’s minimum wage will rise from $8.00/hour to $8.50/hour on Jan. 1, 2009, with further increases planned over the next two years:
| July 1, 2009 |
$9.00/hour |
| Jan. 2, 2010 |
$9.50/hour |
| July 1, 2010 |
$10.00/hour |
Although staged increases in the minimum wage give employers some advance notice on rising labour costs, minimum wage hikes remain difficult for foodservice operators to absorb because of the labour-intensive nature of the industry. In Newfoundland and Labrador, nearly 31 cents of every dollar spent at a restaurant goes directly to payroll costs.
In meetings with the government, CRFA expressed its concern about the magnitude of these increases, and underscored the importance of providing employers with adequate notice of wage increases. 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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