The Canadian Federation of Independent Business (CFIB) says Sunday's planned 5.56 per cent minimum wage increase in Quebec will have a significant negative impact on the operations of more than half of its members.
A CFIB calculation indicates that the increase in minimum wage to $14.25 per hour will result in an additional $237.1 million in costs for businesses that are already being hit by price increases.
CFIB Vice-President for Quebec François Vincent adds that the two years of health restrictions have left an average debt load of $108,000 per Quebec small and medium-sized enterprise (SME), as well as sub-par revenues for the majority of them.
A consultation by the CFIB indicates that for 79 per cent of its members, the best way to support them in the event of a minimum wage increase would be to either reduce the overall tax burden or, for 73 per cent, to lower payroll taxes.
On the other hand, 58 per cent hope for tax credits.
CFIB says if the tax burden on SMEs was reduced, they would be able to increase wage conditions more than 70 per cent of the time.
The federation suggests there are more effective measures to combat poverty than such a significant increase in minimum wage, such as improved work incentives or targetted tax credits that would directly benefit low-wage employees without creating additional pressure on already fragile SMEs.
The Canadian Federation of Independent Business reasons it has 95,000 members in all business sectors.
-- This report by The Canadian Press was first published in French on April 29, 2022.
