'Everyone's struggling': Nova Scotia resort announces $15 per hour minimum wage

A resort on Nova Scotia's South Shore has announced plans to introduce a minimum wage next month of $15 per hour, more than $2 higher than what is mandated by provincial law, saying it's unreasonable to expect families to survive on less.

White Point Beach Resort's decision to boost the minimum wage is part of a growing trend across the province and the country as the market adjusts to new conditions, including labour shortages exacerbated by the COVID-19 pandemic, said a senior director at the Canadian Federation of Independent Business.

"If you look at the salaries on offer in Nova Scotia, they have increased and are continuing to increase," said Louis-Philippe Gauthier.

The surprise wage increase, which kicks in Sept. 5, was announced Wednesday to staff at White Point Beach Resort in Queen's County.

'Everyone's struggling'

"We had several people across the property cry," said general manager Dylan Meisner. "We just felt it was time to increase the wage to everyone across [the] property in an hourly role because everyone was struggling.

"Everyone struggles with COVID, everyone's struggling with life."

Meisner said the idea came from resort owners Robert and Alicia Risley. In a news release, Robert Risley said with increases in the cost of groceries, gas and accommodations, they don't understand how a minimum wage family "could even come close to a reasonable existence."

Higher wage a gamble, says GM

Meisner said the wage increase is a "huge financial gamble," but he considers it an investment in the resort's staff. He said it's hoped improving morale and job satisfaction will help with recruitment and retention of employees and translate into a better experience for guests, too.

"We live in a rural community. A lot of our people drive 30-plus minutes to come to work," he said. "And we don't want their wage to be a reason that they would want to look somewhere else to work." 

Not all businesses able to offer more

Gauthier said data shows labour shortages across Nova Scotia, particularly in the hospitality and retail industries.

He said increased wages are one way of confronting that shortage, with some companies using this approach to differentiate themselves and attract employees. This can lead to healthy competition, he said, but whether it prompts more businesses in Nova Scotia to follow suit remains to be seen.

"It's not always a solution that's possible and it's not always a solution that allows the business to make a go at it effectively," Gauthier said. 

Staffing shortages

White Point has not been exempt from the staffing challenges felt across the province.

In the three years Meisner has been at the resort, he said there's never been a full complement of staff. White Point now employs about 145 people, but in the past it's had up to 225 employees.

Meisner said the resort will not increase its prices or reduce employees' hours in order to pay for the wage increase. 

Earlier this year, Nova Scotia increased the minimum wage by 40 cents to $12.95 per hour, making it the second highest minimum wage in Atlantic Canada. P.E.I. has set a minimum rate of $13 an hour.