Minimum wage increases could create wage compression, add complexity for national employers: expert
Recent minimum wage increases could create wage compression for certain employees and add another layer of complexity for employers with workers in different provinces, says Monty Verlint, partner at Littler Mendelson P.C.
On Oct. 1, minimum wages increased in Saskatchewan, Manitoba, Ontario, Nova Scotia and Prince Edward Island. These increases could lead to wage compression, especially in industries like retail, hospitality and the food industry, notes Verlint.
“Employers need to [consider] if they have to increase minimum wage for certain workers, how do they deal with everyone else? How is everybody else going to feel? What kind of employee morale issues are going to occur if some people are getting an uptick........
