| Alberta minimum wage sixth in Canada |
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| Local Content - National News |
| Written by Trevor Busch |
| Thursday, 18 February 2010 18:05 |
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Alberta’s minimum wage will remain frozen throughout 2010, in a move Alberta Employment and Immigration officials have described as protecting those in entry-level positions from losing their jobs due to the effects of the global recession. Keeping small businesses afloat was another explanation for keeping Alberta’s minimum wage at $8.80 per hour, 70 cents behind the highest wage rates in Ontario and Newfoundland and slipping to sixth of all provinces in Canada. Barrie Harrison, a spokesperson with Alberta Employment, said the decision to freeze the minimum wage was a responsible one on the part of the government considering today’s financial realities. “This is about making responsible decisions in the midst of economic challenges. It’s about looking forward and determining whether the current policy is working for both entry-level workers and small business or if there’s a better way of determining Alberta’s minimum wage as we go forward. Although low-income Albertans might benefit in the short-term from a wage increase, there is also a longer-term need to ensure that we protect jobs as the current economic challenges continue.” Thomas Lukaszuk, Minister of Employment and Immigration, has ordered an all-party committee review of current policy regarding minimum wage increases. In 2007, minimum wage increases were linked to Alberta’s average weekly earnings (AAWE) index. “A policy review will now take place,” said Harrison. “This is likely to include a study of other jurisdictions to see what works and what doesn’t. Employment and Immigration Minister Thomas Lukaszuk’s goal is to have a solid policy in place by spring 2011. An all-party committee will now review whether this (AAWE) is the best mechanism, or if there’s something better out there. I should add that approximately 20,000 working Albertans earn minimum wage. Many are 15-19 years old who work in the accommodation and food services industries. The minimum wage is an entry-level wage that provides Albertans new to the workforce an opportunity to develop their skills and gain valuable work experience.” Harrison admits freezing the minimum wage at the current level could lead to Alberta slipping well behind the other provinces. “Quite possibly. At $8.80 per hour, Alberta’s minimum wage currently ranks sixth among all provinces. We understand both Nova Scotia and New Brunswick are planning increases April 1. Their current minimum wages are both less than Alberta’s. One (Nova Scotia) could surpass Alberta and increase from $8.60 to $9.20 per hour. New Brunswick’s rate could increase from $8.25 to $8.50. Time will tell if both provinces will continue with their plans. Alberta’s decision was not taken lightly, and reflects what government feels is the best approach to support the economy and protect jobs during these uncertain economic times. Other governments may be proceeding with increases in 2010, and each province or territory has its own reason for doing so, but it is our belief that our approach is the best for our province.” According to Harrison, the province is attempting to ensure favourable economic conditions for a fast recovery. “This is about striking the right balance — ensuring Albertans in entry-level positions keep working, and that our province’s small businesses remain viable and competitive through the global economic recovery. So it’s not just about benefiting small business. Studies in other jurisdictions show that increases to the minimum wage, particularly during times of economic challenge, can force small business to lay off staff or reduce hours. Our preference is to keep as many Albertans working as possibly, including those in entry-level positions.” |