CANADA | Restaurants across Nova Scotia have struggled with a lack of financial assistance from the government.
Restaurants Canada has asked the Nova Scotia government to follow the lead of Newfoundland and Labrador’s government in providing financial aid to restaurants struggling with a string of minimum wage increases.
Newfoundland and Labrador, like Manitoba, has recognised the need to provide support to help small businesses transition to these higher minimum wage rates. The provincial government has provided over CAD two million through the Canada-Newfoundland and Labrador Labour Market Development Agreement as direct financial assistance to an estimated 600 small and medium-sized businesses.
“We are asking the government of Nova Scotia to look at what their counterparts are doing and follow their lead,” said Jordi Morgan, Vice President of Atlantic for Restaurants Canada.
“Seven consecutive mandated wage hikes are making it very difficult for our restaurants to survive as the wage increases come directly off their bottom line. Over 62 percent of restaurants in this country are now either losing money or barely breaking even.”
Restaurants Canada added that minimum wage increases have unintended consequences. Back-of-house and kitchen staff are being denied increases because they often make more than minimum wage.
“Their front-of-house colleagues, whose compensation is made up of a minimum wage – plus tips, must receive the mandated increase, but with their tips, these employees are already earning a much higher paycheck.”
A server in a mid-range, full-service family restaurant in Canada earns, on average, a total of CAD 62 per hour. It is unfair when employers are forced to provide mandated minimum wage increases to tipped employees – resulting in less money to provide raises for others.
Restaurants Canada has remained hopeful that the government of Nova Scotia, like Newfoundland and Labrador, will demonstrate it also recognises the additional burden they have put on operators during this difficult period and provide help for the recovery of the sector.
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