But now, as a result, retailers end up with a 6.7% increase of their largest expense item, or $0.75 per hour as of May 1 of this year, which translates to $0.87 per hour with benefits (16% in addition to the salary – see Real wage<\/a>).<\/p>\n What will be the impact of this increase? How will retailers cope with such an additional expense without any productivity gains? Will they have to cut spending or try to increase their income, and if so, how?<\/p>\n DepQu\u00e9bec<\/strong> tried to find out by exchanging with three genuine convenience store owners. And to get their true feelings, thoughts and impressions, we did so by promising not to reveal their identity.<\/p>\n For this independent c-store featuring a well-known brand, the minimum wage increase will cost $6,000 in additional operation costs per year.<\/p>\n “I plan to do two things to get this $6000 back,” the owner said. “One: cut about 10 hours of pay per week and two: increase the margin where I can.”<\/p><\/blockquote>\n This owner said he plans on taking the minimum wage increases one year at a time, as he did for previous increases.<\/p>\n But according to him, “it is certain that as time goes by, the room for maneuver decreases”.<\/p>\n For this other independent convenience store, which offers gas and a multitude of commodity services, the increase in the minimum wage is more worrying because it will cost at least $15,000 a year.<\/p>\n Indeed, the store offers several services requiring up to 12 employees in all to meet the needs of the customers throughout the week.<\/p>\n All well calculated, the owner pays around 16,000 hours in minimum wage staff during a whole year. The increase thus represents approximately $15,000 in additional operating costs that will have to be compensated somehow to stay in business.<\/p>\n However, the potential solutions are quite limited for the moment:<\/p>\n The owner highlighted that the competition on the market is very intense and that the increase in the minimum wage affects proportionately more small c-stores than larger supermarkets because they have much higher volumes. “When we hire students who live with their parents, they find the minimum wage quite high enough and they would rather work more than have a better pay but less work. The government should consider making a minimum wage distinction between full-time workers and students at work, “the owner said.<\/p><\/blockquote>\n This could be an interesting solution to consider given that the government is likely to continue, in all likelihood, to raise the minimum wage at a rate of two, three or even four times higher than inflation. for 10 years.<\/p>\n At this other convenience store with a known banner, the proportion of minimum wage earners is lower: we are talking here of about 7250 minimum wage hours paid per year.<\/p>\n Many trusted employees with long years of experience earn more than the minimum wage but also have increased responsibilities such as closing the store, supervising other employees and more.<\/p>\n Facing an extra $0.87 an hour to pay, the owner anticipates her cost at about $6,300 a year.<\/p>\n One of her concerns is about the higher-paid employees, who earn about $ 13, $ 14 or even $ 15 and more per hour.<\/p>\n “I need to think about increasing the wages of higher-paid employees to keep them happy and motivated”, said she. I fear jealousy and loss of motivation for those who would not get an increase. “<\/p><\/blockquote>\n In addition, the owner fears the impact of large surface stores and the domino effect of these on her own suppliers.<\/p>\n “Being under pressure from major chains, our suppliers will be tempted to increase prices for products sold at convenience stores to keep their large customers happy,” said she.<\/p><\/blockquote>\n This simultaneous dynamic of higher operating costs and higher retail prices does not bode well for the industry which, in her view, will accelerate the consolidation process in which the weakest disappear and the strongest strengthen.<\/p>\n To offset the rise in minimum wage, the owner intends to increase her margins on certain products by five cents here and there, especially when the suppliers will raise their prices, so as not to arouse too much attention and to distinguish themselves from the competition. .<\/p>\n This unexpected raise just 6 months prior to the next provincial elections – which nobody asked for in particular – ultimately leads to heartbreaking choices for c-stores owners that will most probably end up penalizing workers through less working time and hours.<\/p>\n What is clear, though, is that the industry will not be able to sustain such labor cost increases of the magnitude of two, three or even four times the inflation rate year after year over 10, 20 years, like it is the case now.<\/p>\n Add to that :<\/p>\n … and you will conclude like us, at DepQu\u00e9bec<\/strong>, that enough is enough!<\/p>\n In conclusion, let’s meditate on the Quebec Labour Minister’s most recent messaging.<\/p>\n![\"\"](\"https:\/\/depquebec.com\/wp-content\/uploads\/2019\/01\/silhouette2-152x300.png\")
<\/a>C-Store 1 :\u00a0 Located North Of Montreal<\/h5>\nC-Store 2 : In A Large City<\/h5>\n
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\n<\/a>C-Store 3 : Average City<\/h5>\n![\"\"](\"https:\/\/depquebec.com\/wp-content\/uploads\/2019\/01\/silhouette3-158x300.png\")
<\/p>\nThank You Mr. Couillard, We Will Remember!<\/h5>\n
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