Two-tiered minimum wage: is it fair? Before government does anything, it should ensure it has the support of Islanders.
The Guardian
Islanders should respond to government's invitation to discuss the concept of a two-tiered minimium wage. It's a provocative idea, and one that's bound to generate controversy among the supporters and detractors of the idea. If government intends to adopt it, it should make sure it has the support of Islanders.
The provincial government is making sweeping changes to the Employment Standards Act, and as part of this, it's preparing legislation that would allow for a two-tiered minimum wage. Labour Minster Carolyn Bertram made it clear recently that the idea isn't a done deal yet; she'd like to hear from Islanders first before any decision to adopt a two-tiered minimum wage.
There's much to discuss. In other provinces where there's a two-tiered wage structure, experienced and inexperienced workers get paid differently. In Nova Scotia, for example, the minimum wage for experienced workers is $8.60 an hour, while for inexperienced workers, it is $8.10 an hour. Ontario's minimum wage is $9.50 an hour, but students make only $8.90 an hour.
Supporters of the idea say this rewards experience and gives inexperienced workers something to strive for. Detractors, however, say such a system is simply an excuse to allow employers to pay their workers less.
If Prince Edward Island is considering such a system, it needs to have a thorough debate about the fine print of such a system. There are some key questions that need to be answered. Would the current minimum wage of $8.40 be lowered for inexperienced workers, or would the wage for experienced workers be raised? What would be the definition of an experienced worker and who would make the call on who is and who isn't in that category?
Let's be clear. At $8.40 an hour, many minimum wage workers in the province are already struggling to pay the bills. It would also be fair to assert that many aren't in a position to challenge an employer if they happen to disagree with the boss's decision to put them in a lower, inexperienced pay category.
If the province does adopt a two-tiered minimum wage system, government must ensure that the interests of both employees and employers are fairly reflected in the law. It's these kinds of issues that need to be discussed in a public consultation process.
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Stephen from Stratford, PEI writes: Experience, experience, experience. How many times have we all been confronted with this when applying for a job? Sorry, you must have experience , but how can you gain experience if you need experience to be hired to begin with? What ever happened to just hiring someone and taking the time to train them the way you like? There are no set bad habits already and you get what you want, or end up with what you are willing to train.
Why is it fair to pay someone more for doing the exact same job? If I was a business owner put in this position, id hire all new people to save money and all the experienced people would be left with no jobs. On the other hand a business who wants all experienced people is leaving the inexperienced people with nothing. How does that help our unemployment rate? How does this help with our future employees? If this plan is put into place will there be a mandatory ratio of veterans VS rookies?
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Blair MacDonald FCA from Rothesay, NB writes: It has been 40 plus years since I experienced the two-tiered wage system as a resident and student on PEI but my feelings are that it was not justified then and is not justified now.In the first year of a summer job,myself and the other students were paid $1.00 per hour and the adults $1.25 an hour for back breaking labour work.As students ,we were keen to do a good job and always wanted to be doing something.Lets just say in terms of output,we worked at least as hard as the adults whose life was seasonal work.
The next summer when the supervisor approached me to go back,my response was that I would if I made the same as the adults-the answer was yes and I went back and 40 years later this busiess still prospers.
When we are talking a two -tiered wage system,we are really talking about paying students less because they are inexperienced .The reality is that we are not usually talking about positions requiring the skills of a rocket scientist.I would argue that the skill level-if proper training is done by the employer-would be equal for both groups after a short period and students bring the extra traits of a keeness to do a good job and prove themselves as they start into their working life.
The bottom line is that if an employer cannot recover a fair cost of labour through the price of their product or service then are other issues with their business other than wage rates.
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absolutely fair from PEI writes: Its as fair as 5.00 for a designer coffee or 8.00 for a greasy burger and fries !
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ken from chtown, pei writes: I wonder if the M.L.A. would go for a 2 tier system until they get experience?
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Shakin' Mahead from Charlottetown, PEI writes: I agree with most here, that there should be no difference between experienced and unexperienced wages when you are talking a minimum wage. If the job is something that is a salaried position based on previous experience, then yes, there is room for that difference between the two entry level salaries. I would not expect a lawyer with no experience to be paid the same as one with cases upon cases under their belt.
Where I do believe in the two tiered system is in the tippable positions. Restaurants are very much a nickel and dime business, profit lines getting smaller and smaller with the rising cost of commodities. But as wages increase, these margins become smaller and smaller to the point where an operator either a)raises the prices on their menu to offset the increase in wages and gets blasted for overpricing their menu or b)run their operations with fewer bodies resulting in a poor guest experience. When I see servers/bartenders walking out with a small amount of money, and then complain that they are underpaid, it makes me sick. On a very mild estimate, let's say a server working 30 hours a week earns $300 in tips (and trust me, that is a mild estimation), that in essence takes that minimum wage position from $8.40/hr to $18.40/hr. So where is the harm in having a two tier system for these positions? If they get paid $6/hr, they are still walking out with a $16/hr position in a restaurant. That would free up money for these owners to either pay their non-tipped positions a more competitive wage (cooks, greeters, dishwashers) so that they can continue to deliver the expected level of guest experience that Islanders demand without running the risk of losing their margins and ending up closing their doors.
Long story short, two tier works for some industries and not others. I know it sounds like a double standard, but it's true. And I know that tips are never a guarantee, never! I have been stiffed so many times after what I know has been great service. But that is why you work in an industry like the food and beverage. You highlight your strengths like your personality and attention to detail Islanders are extremely generous by nature and that is no different when they dine in a restaurant. A small decrease in tippable position wages would be a lesser strain on an employer so they can continue to provide a venue for you to make a paycheque.
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bernard pyke from charlottetown, pei writes: It doesn't matter what the pei government does with this idea, they will do whatever they like as they have with every other employment thought for the province.
They can say they will insure that both parties are equally satisfied, but we all know the employer sets the rule, and you can't afford to fight it.
I have worked for so many companies here in prince edward island who say, they WILL NOT PAY OVERTIME , even if you have gone beyond in your weekly hours.
I have talked with employment standards about this and they do nothing, always say you need a second or third employee for support, and today, no one is secure enough to stand behind you on that issue. So you deal with it until something better comes along if it ever does.
So we as the public have to continue to look for employer who cares about the EMPLOYEE and not for the ALLMIGHTY CHECKBOOK as we all know they do.
Without great workers, no employer can succeed, today or tomorrow.
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nitpicker from Charlottetown, PEI writes: no need to reinvent the wheel totally. My memory is a bit vague, but I am pretty sure we had a two-tiered system here about 20 years ago.
We can start by asking, how did that work out? Why did we change? What can we improve upon?
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