Newfoundland and Labrador approach to minimum wage will protect jobs


St. John's, Feb. 21, 2018 (GLOBE NEWSWIRE) -- Effective April 1, the Newfoundland and Labrador government will increase the provincial minimum wage by $0.15/hour, bringing it up to $11.15/hour.  This is the third minimum wage increase for the province within the past year. As advocated by Restaurants Canada, the provincial government announced that future increases will be tied to the Consumer Price Index (CPI).

“Restaurant operators are hard pressed to deal with three minimum wage increases in one year and a sluggish economy,” says Luc Erjavec, Atlantic Canada Vice President for Restaurants Canada. “Restaurants Canada applauds the government’s commitment to link minimum wage increases to an economic indicator such as the CPI.”

“Restaurants provide more first-time jobs than any other industry in Canada, and are a stepping stone to the broader labour force including thousands of opportunities for youth in foodservice in Newfoundland and Labrador,” says Erjavec. “Linking wage increases to the CPI will bring a level of transparency and predictability which will help our industry protect and grow job opportunities.” 

Nearly 75 per cent of minimum wage earners in the restaurant industry are young people under the age of 25, and well over two-thirds work part-time. In most cases, these individuals live at home, are students or are secondary-income earners. Approximately 40 per cent of Newfoundland and Labrador minimum wage earners in foodservice also earn tips, which helps increase their standard of living.

Restaurants Canada is one of Canada’s largest business associations, with more than 30,000 members representing restaurants, bars, caterers, institutions and other foodservice providers. In Newfoundland and Labrador the foodservice industry is the 3rd largest private sector employer providing 15,300 jobs, 5,800 of them which are youth.

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