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“This abrupt introduction of a new payroll tax is of real concern to manufacturers,” said Andrew Wynn-Williams, Divisional Vice President, B.C. of Canadian Manufacturers & Exporters (CME). “At a time when our most significant competitor is lowering taxes, this will impede competitiveness and act as a drag on job creation.”

“This new tax of up to 1.95% of payroll will hit employers for $1.85 billion in 2019,” explained Wynn-Williams. “That is before the MSP is even fully eliminated. That is going to be a challenge.”

“There is some good news in this budget,” said Wynn-Williams. “But there are few direct measures to support manufacturers, particularly to help offset the increase in payroll and carbon taxation.”

“Encouraging more women to consider manufacturing careers is a significant issue for CME across the country,” said the CME Divisional Vice President, “so the increase in childcare options could provide more opportunities to increase their participation in well-paid manufacturing occupations.”

Other potentially positive measures that were identified by CME will help address the challenge in finding and retaining employees. These include addressing the cost of housing and increases to the Labour Market Development Agreement and Workforce Development Agreement with the federal government.

“We look forward to working with government on a couple of initiatives identified in this budget,” went on Wynn-Williams. “This includes the new training dollars and how to use carbon tax revenue to support manufacturers in transitioning to greener practices that will allow them to remain innovative and competitive.”

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Read Full Analysis of 2018 BC Provincial Budget

For further information please contact:    

Andrew Wynn-Williams
Divisional Vice President, British Columbia
Phone: 778-828-8207

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