WINNIPEG, May 26, 2011 /CNW/ - The Manitoba government's decision to
raise the minimum wage to $10.00/hour in October will once again hit
small businesses and youth job creation across the province.
"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 within foodservice in Manitoba," says Dwayne
Marling, Manitoba-Saskatchewan Vice President for the Canadian
Restaurant and Foodservices Association (CRFA). "Unfortunately the
Manitoba government seems determined to pursue a policy of wage
inflation, rather than job creation."
"Restaurant operators are already struggling with escalating food,
energy and beverage alcohol costs," says Marling. "Another increase in
the minimum wage, the twelfth in 11 years, hits an industry which is
already operating on tight margins."
Last year's 50-cent minimum wage hike hit Manitoba's restaurant
operators with an estimated $16 million - or $7,000 per restaurant - in
increased labour costs. This year's increase is expected to have a
"The province holds up the elimination of the small business tax and
cuts to the general corporate capital tax as solutions to every
business owner's challenges," adds Marling. "But this is only helpful
when businesses are actually making money. And in Manitoba, not only
are margins tight, we have the lowest per capita foodservice sales in
the country. Real sales in the province's restaurants were flat in
2010, compared to an increase of 1.4% nationally."
Manitoba's $1.7-billion restaurant and foodservice industry is one of
the largest employers in the province. More than 41,000 people are
directly employed in foodservice, making it the third-largest
private-sector employer in Manitoba. More than half of these employees
are young people under the age of 25.
CRFA is one of Canada's largest business associations, with more than
30,000 members representing restaurants, bars, caterers, institutions
and other foodservice providers. Canada's $60-billion foodservice
industry employs more than one million people in communities across the
SOURCE Canadian Restaurant and Foodservices Association
For further information:
Dwayne Marling, Vice President, Canadian Restaurant and Foodservices Association, 204-926-8557 or firstname.lastname@example.org; Prasanthi Vasanthakumar, Communications Specialist, 1-800-387-5649, ext. 4254 or email@example.com.