The province of Alberta is looking into raising the minimum wage for employees throughout the province and recently launched a consultation process to gain feedback on the proposed change.
The government launched the consultation process last week, saying it is committed to listening to employers and employees on how to move forward with changes to the minimum wage.
“We’re committed to bringing Alberta’s general minimum wage up to $15 per hour to give lower-income Albertans the ability to support their families,” said Minister of Labour Christina Gray. “We want to take the time to listen to the people directly involved and make sure we get this right.”
The NDP government, elected last spring, has committed to reaching a $15 minimum wage by the end of its term in office three years from now. The discussions being held as part of this consultation will include future increases, meal and lodging deductions and the phase-out of the differential liquor server rate.
Increasing the minimum wage has been a concern for employers in the Bow Valley. Regional director for Fairmont hotels David Roberts recently expressed his company’s concerns around the approach being taken to increasing the minimum wage.
With a lot of unskilled, seasonal labour in the hotel sector, Roberts told Minister of Finance Joe Ceci, the increased minimum wage affects that industry acutely.
“We in the private sector are faced with minimum wage increases mandated by yourself, which does not give us the same relief you have,” he said.
Ceci said the goal of increasing the minimum wage in Alberta is to create a better economy for everyone and stimulate positive gross domestic product growth.
“Higher minimum wages … that will go back directly into our economy,” Ceci said. “People will buy groceries and supplies and improve their overall quality of life, which will also benefit us because we will invest less in social supports of people.”
He said a higher cost to employers is recognized, but that increased minimum wage also benefits employers with more satisfied workers.
The Canadian Federation of Independent Business has also raised concerns with the increased minimum wage and the impact it will have on small business owners. When it comes to the consultation process, CFIB’s Alberta director, Amber Ruddy, said she welcomes the opportunity to share concerns about the policy. Ruddy said recent analysis of Statistics Canada data has shown almost one in three Canadian business owners are earning effectively $15 or less an hour.
“CFIB will be first in line to raise concerns on the government’s drastic, job killing minimum wage plan,” said Ruddy. “Myths continue to persist at the highest levels and we will use these consultations to show the government and Albertans that small business owners are hard-working members of Canada’s middle class. There are better ways to help Alberta’s low-income earners without putting employers out of business.”
Approximately 59,000 people in Alberta earn minimum wage and about 61 per cent are women. Approximately 43 per cent of minimum-wage earners are full time and nearly 77 per cent have permanent jobs.
Further statistics offered by the government show over 300,000 Albertans earn $15 per hour or less and over 33,000 of those are single earners with children.
In October, the hourly minimum wage was raised to $11.20 an hour for most employees. Those who serve liquor as part of their job earn $10.70 an hour as minimum wage.
