Ontario and Saskatchewan will raise their minimum wage on Tuesday, with Ontario’s set to reach $17.20 per hour, making it one of the highest rates in the nation. In contrast, Saskatchewan, which previously had the lowest minimum wage in Canada, will increase its rate to $15 per hour, tying it with Alberta for the lowest.
Alberta has not adjusted its minimum wage since October 1, 2018, when it was the highest in the country. “Fifteen dollars doesn’t stretch as far as it did in 2018,” noted Bradley Lafortune from Public Interest Alberta, a non-profit organization dedicated to education and advocacy on public issues in the province. Lafortune advocates for raising the minimum wage to a living wage.
“We would propose a minimum wage of $25, which would serve as a living wage throughout most of the province, except in specific areas like the far north in Fort McMurray or in tourist destinations such as Canmore, Banff, and Jasper,” Lafortune explained.
“A living wage is crucial in Alberta, as many individuals are struggling to make ends meet with minimum-wage jobs while the costs of necessities—groceries, utilities, mortgages, and rent—continue to rise.”
The president of the Alberta Federation of Labour also expressed the need for a minimum wage that keeps pace with inflation, suggesting a rate in the vicinity of $19 per hour.
“Every Albertan knows we’ve been experiencing an extraordinary surge in the cost of living,” stated Gil McGowan. “However, during these six years, there has been no increase in the minimum wage.”
“What we truly need at this moment is a minimum wage that aligns with inflation and acknowledges the rising cost of living,” emphasized Bradlee Whidden, policy analyst for Western Canada with the Canadian Federation of Independent Business (CFIB). The CFIB stressed the importance of considering small businesses when contemplating minimum wage increases.
“The organization supports raising the minimum wage, provided the adjustments are predictable, stable, and sustainable,” Whidden added. “This could involve linking the minimum wage to tangible metrics like median wages or labor productivity.”
Whidden warned that unpredictable changes in minimum wage could occur too rapidly for business owners, potentially jeopardizing their operations. “Our survey data indicated that after the last minimum wage increase in Alberta, approximately half of small businesses raised their prices, and around 30% had to reduce their workforce,” he noted. “Many simply cannot bear a substantial rise in labor costs.”
Alberta’s Minister of Jobs, Economy and Trade, Matt Jones, acknowledged that minimum wage is a significant concern for the government. However, he cautioned that “substantial changes to the minimum wage could adversely affect small businesses, young workers, and Albertans seeking their first or part-time jobs.”
He further explained that these changes impact operational costs, which ultimately affect all Albertans. “Albertans retain more of their earnings due to our province’s low provincial income tax rates, high personal income tax exemption levels, and the absence of a provincial sales tax,” Jones stated. He assured that the province would “continue to closely monitor this issue and assess whether the current approach is suitable for Albertans.”
Lafortune argues that small businesses can receive support through tax credits, grants, and job-training programs that promote cost-sharing between the government and employers when it comes to employee wages. He believes that increasing the minimum wage could actually benefit small businesses.
“Individuals earning minimum wage typically spend their income within the local economy, which means they’ll be purchasing goods from small businesses and grocery stores, helping keep that money circulating in Alberta. It’s crucial for small businesses to ensure that people have enough funds to cover their basic needs, like food, bills, and housing,” he explained.
“We simply cannot afford to neglect raising the minimum wage. The time to increase it is now, and we shouldn’t be at the bottom of the list.”
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