Now that the B.C. minimum wage has gone from $12.65 to $13.85 effective June 1, I believe franchise operations such as McDonald’s, Wendy’s, A and W, Burger King, Dairy Queen, and Tim Horton’s will suffer from the new pay rates.
Why? Owners of these franchise operations cannot increase their menu pricing because the menu pricing is set by the head office corporation outlets of these franchise operations. This pay raise comes directly out of the bottom line profit of these franchise owners. The only solution I see is to send some employees to the unemployment office, and reduce hours for other employees.
Also, some employees in these franchise operations are already paid higher than minimum wage because of years worked; so shouldn’t these employees also be given a pay raise to maintain their level above minimum wage?
Some taxpayers voted for a change in government in the last B.C. provincial election, but I feel as though the new B.C. NDP minority government does not have any business sense. I guess all of us customers to the retail sector will now have to wait longer at the cash out counters because there will be less cash checkouts open because of these new unexpected consequences of the minimum wage increase.
The new B.C. government fails to realize that minimum wage pertains to small business; and they also fail to realize that along with the new minimum wage comes employer paid benefits that amount to 35 per cent. Add that additional cost to the wage, this now makes the minimum wage $18.70 per hour for employers, all coming out of the franchisee bottom line profit.
In closing, do not get frustrated when waiting in a line at a cash out counter, as it is not the problem of the retailers, but rather, the longer wait lines were created by the B.C. NDP minority government, in my opinion, which is totally unbelievable!