Manitoba will soon have one of the highest minimum wages in the country and at least one business group wants to see a two-tiered wage system on the menu.

Manitoba's minimum wage goes up to $8.50 per hour April 1, up 50 cents and the third hike since 2006.

The Winnipeg Chamber of Commerce said a two-tired system will level the playing field between those workers who earn strictly minimum wage, and those who earn their wage plus tips, such as those who work in the hospitality industry.

"Depending on the restaurant you are working at, it could be two or three times your actual wage you're making in gratuities," said President and CEO of the Winnipeg Chamber of Commerce Dave Angus. "So we think it would be appropriate to protect some restaurants -- to have a differentiating minimum wage where one side of the minimum wage would go up and the other side might not go up as much."

Angus said the Chamber worries that restaurants might start cutting jobs as a result of the increased labour cost.

Hike could raise menu prices

At least one restaurant owners said the wage hike will mean higher prices for his customers.

"Every year is the increase with cheese, with the milk and all that - so we have to raise our prices a little bit so we don't feel it," said John Kolevris, who owns Saffron's.

Labour minister Nancy Allan said there is no plan to adopt a two-tiered system, similar to B.C. and Nova Scotia, and several U.S. states.

"Tips are actually owned by the employer," she told CTV's Alana Pona. "So the employer makes the decision how those tips are handled -- sometimes the employee gets all the tips -- sometimes the tips are shared, particularly in the restaurant industry."

Alberta is hiking its minimum wage to $8.40 per hour, and Saskatchewan's is going up to $8.60 April 1, while Quebec's is going up to $8.50 per hour and Yukon will go up to $8.58 on May 1.

After May 1, 2008, provincial minimum wages will look like this:

  • Ontario $8.75
  • Saskatchewan $8.60
  • Yukon $8.58
  • Manitoba, Nunavut, Quebec $8.50
  • Alberta $8.40
  • NWT and Saskatchewan $8.25
  • B.C., Newfoundland and Labrador $8.00
  • New Brunswick $7.75
  • Nova Scotia $7.60
  • Prince Edward Island $7.50

With a report from CTV's Alana Pona.