The Canadian Restaurant and Food Services Association wants to establish a tip differential in Nova Scotia and freeze minimum wage at $8.60 for employees who serve food and liquor. Photo illustration: Geoff Davies

Minimum wage increase tough blow for student servers

Anthony Rosborough, a student and part-time server, says the wage increase will cost his employer money – enough to cut shifts and staff.

A wage hike in the food service industry may mean a pay-drain for student servers.

Minimum wage will increase by 12.2 per cent this year and could cost food service companies as much as $31 million, says Luc Erjavec, vice-president of the Canadian Restaurant and Food Services Association.

Starting wages are scheduled to increase $1.05 an hour this year – by 60 cents on April 1 and by an additional 45 cents on Oct. 1 — bringing the total to $9.65 from $8.60.

Erjavec said boosting starting wages at a time when inflation is running at 1.2 per cent is likely to leave employers “with some tough choices." He said restaurants may start cutting cutting shifts and staff. Anthony Rosborough, a political science and law student at Dalhousie University, and a part-time Halifax Metro Centre skybox server, said raising his hourly pay would mean less work and less money.

Rosborough makes about $60 in tips per five-hour shift. Combined with the current minimum wage, that’s about $20 an hour.

He said raising the minimum, combined with what he said was currently poor attendance at Metro Centre events, will likely cause his usual three shifts a week to dwindle.

“I’d rather be there for twice as long, make half as much hourly, and make twice the tips,” he said. “It’s already at a point now where our food and drink sales aren’t making up for the amount of people we have working every night.”

“We’re sitting around all night reading magazines and newspapers.”

Victor Syperek, owner of the Economy Shoe Shop, said this is a severe blow to his business.

“It’s going to cost me tens of thousands of dollars a year… which of course we will pass on to the consumers so everyone is going to pay,” he said.

On average food service companies in Nova Scotia make a 2.3 per cent profit per year, according to Erjavec.

But Syperek’s busy bar will not compensate for lost dollars by cutting shifts – he just can’t afford to lose the labour. 

“I am the owner of the place and provide them with everything they need to do their job. They walk out making a lot of money,” he said. “This is being counterproductive to business.”

Erjavec wants to remedy the situation by establishing a tip differential in Nova Scotia – that would mean a wage freeze at $8.60 for employees who serve food and liquor.

“(Servers) work for their tips. For them it’s the most important part of their income,” he said, explaining a freeze would prevent employees from losing hours and restaurants from losing the money.

Syperek agrees with the freeze, adding he is also dealing with a 10 per cent rent increase. 

The association is proposing a number of other possible options by circulating more than 300 petitions that include:

• Reducing the income tax burden on low-income earners

• Bringing increases to the minimum wage in line with other income indicators

• Leaving the inexperience wage at the current rate.

Erjavec said the petitions were submitted last Friday, and government officials said they will have 30 days to assess the proposed changes and make a decision.

According to an association news release, about three quarters of minimum wage earners in the food service industry are under 25 years of age, and more than two-thirds work part-time.

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