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Restaurateurs Disappointed with Liquor Server Wage Phase Out

Vancouver, April 19, 2018 (GLOBE NEWSWIRE) -- Restaurants Canada supports reasonable minimum wage increases to ensure employees can keep up with the cost of living. Licensed restaurant members also support British Columbia’s liquor server wage as it enables restaurateurs to provide higher wages to non-gratuity earning career oriented back of the house staff.

“British Columbia’s licensed restaurant industry is extremely disappointed with today’s short sighted announcement that phases out British Columbia’s liquor server wage”, said Mark von Schellwitz, Restaurants Canada’s Vice President for Western Canada. “Clearly the Fair Wages Commission has no understanding of how our industry works as their recommendations will make life less, not more affordable for both liquor servers and non-tipped employees,” added von Schellwitz.   Restaurants Canada is also disappointed that the Commission did not consider a youth wage to encourage small businesses to hire first time youth workers rather than rely on more experienced employees as the minimum wage increases.

The liquor server wage will be phased out over the next four years in step with general minimum wage increases. British Columbia’s liquor server wage will increase $1.30 from $10.10 to $1140 effective June 1st 2018 followed by another $1.30 increase to $12.70 in 2019. The liquor sever wage then increases by $1.25 in 2020 to $13.95 and will be eliminated completely in 2021 moving up another $1.25 to match the general minimum wage of $15.20. 

“Liquor servers have by far the highest earnings of all hourly employees in a licensed restaurant or bar when you factor in their gratuities,” said von Schellwitz. “The liquor server wage is important to our licensed members, as it allows licensed restaurateurs to provide higher wages to attract and retain skilled non-gratuity earning kitchen staff, especially during the current labour shortage,” concluded von Schellwitz.

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Comparing GMW increases with LSW phase out
Year Liquor Server Wage General Minimum Wage
2018 $11.40 $12.65
2019 $12.70 $13.85
2020 $13.95 $14.60
2021 $15.20 $15.20


Restaurants Canada doesn’t want to see a repeat of the significant industry job losses in Alberta, where an arbitrary push for a $15/hour minimum wage and the elimination of the liquor server wage was too much too fast and came at the exactly the wrong time during Alberta’s economic downturn.
 
Restaurants Canada is a growing community of 30,000 foodservice businesses, including restaurants, bars, caterers, institutions and suppliers. We connect our members from coast to coast, through services, research and advocacy for a strong and vibrant restaurant industry. British Columbia's restaurant industry directly employs 174,000 British Columbians and has total annual sales of $13 billion.

Mark von Schellwitz
                    Restaurants Canada
                    Phone: 604-685-9655 or cell 604 809 5719
                    Mark@RestaurantsCanada.org
                    

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