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“If I’m a supervisor making $15 an hour and I’m supervising five or six people making $12 an hour, once they get to $15, I’m not happy making the same wage...”
THE TRICKLE-UP EFFECT
Thistle raises another good point, stating that the sudden rise in minimum wage goes beyond those who fall into that category. He is referring to the trickle-up effect, which the minimum wage increase will undoubtedly have on the golf industry, and other businesses.
“If I’m a supervisor making $15 an hour and I’m supervising five or six people making $12 an hour, once they get to $15, I’m not happy making the same wage,” he said.
“It’s not like I’m making $20 an hour and the person goes from $11 to $15. If I’m making $15 an hour and the people I’m managing are making the same, I say I want more, I need an extra something, so there’s a ripple effect,” said Thistle.
“I don’t want to deny anybody a wage or a living. I like to think I’m accommodating and I think that shows through our staff retention,” said Tiffany Gordon, executive professional and general manager at Cottonwood Golf and Country Club in De Winton, Alta.
The trickle-up effect on wages is something that doesn’t get the attention with such a grandiose intro- duction of a $15 an hour minimum wage, according to Gordon.
“If you’ve got experienced employees who see a new person making $15, they’re going to say, for example, that they’re now worth $23 an hour,” she said.
REDUCTION IN STAFF AND INCREASES IN PRICE
Many golf course owners and operators are concerned that they may be left with no choice but to reduce staff or increase their prices.
“When you’re trying to maintain a 65 to 70 percent staff retention rate, then we’ve got a budget conundrum and it could be a huge hit for all businesses,” added Gordon, adding that labour is 35 percent of revenue at Cottonwood.
“We’ll have to do more with less people. I don’t have a choice and I’ve always prided myself in taking care of staff members. People are definitely concerned and it’s not just golf. It’s retail, restaurants and other businesses,” she said.
Many in the golf industry in Ontario see golf courses already on the edge, falling off the cliff and closing shop. Small price hikes may be possible, but many operations are in competitive markets and there is the traditional complaint about golf’s lack of
affordability, meaning measures must be taken.
other
Tom Arnott, general manager of the Idylwylde Golf & Country Club in Sudbury, Ont., says the added cost will be 22 percent. Arnott says his labour to revenue cost is currently about 36 percent.
“We will also see the trickle-up effect. I calculated that to be another 12 percent. We have a fair amount of staff getting paid $15 an hour now, so they will need to be topped up to maintain some separation from younger, less-experienced staff,” said Arnott, adding that tough decisions ahead will need to strike a fine balance between price increases, staffing levels and levels of service.
What Has The NGCOA Canada Done For You On This Issue?
• Sent out a position statement to all NGCOA Canada members;
• Sent a letter with the accompanying position statement directly to Ontario Premier Wynne;
• Registered to present at multiple government public consultations across Ontario;
• Sent a letter to the Standing Committee of Finance & Economic Affairs;
• Reached out to the Ontario & Alberta Chambers of Commerce to support lobbying efforts;
• Reached out to the Canadian Federation of Independent Business (CFIB) to support lobbying efforts.
For updates on the minimum wage increase and specific details contained within Bill 148, visit the government relations section at www.ngcoa.ca.
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