N.B. Government brews weak Minimum Wage Policy
Apparently New Brunswick Labour Minister Martine Coulombe is considering some rather poor policy decision that will negatively affect the majority of service sector employees in the province.
According to a CBC article, the Minister is considering a “two-tier system that would pay workers younger than 18 or trainees a lower wage”. Now, most people may initially think, “Who cares?”, but this is likely to have a negative effect on those over 18 working in the service sector.
Assuming that there are plenty of under-18 workers in the province (which I think is a safe bet) the result will be employers hiring these young employees into positions where they are directly substitutable for older workers.
For example, grocery stores like ‘Superstore’ will be more inclined to hire young workers as they, for the most part, can do just as good a job ringing through food as a 35 year old employee. The result will be not only a younger workforce being hired for these types of jobs, but some employers may be biased to give these cheaper employees more hours, pushing out the older workforce.
This could result in the older workforce heading to school to receive more training, finding jobs that better utilize their skills, or increased poverty as they can produce no greater benefit to a company than a sub-18 worker, making them unattractive to employers. As those under 18 would tend to live at home, whereas those above that age are more likely to live independently, poverty would rise. An unemployed, uneducated workforce is also much more likely to turn to crime than otherwise.
While this policy is likely meant to appease small business, its effects will likely have a negative net effect if implemented.
