Alberta Poised to Have the Nation’s Lowest Minimum Wage
Starting Tuesday, Alberta will tie for the lowest minimum wage in Canada. While Ontario, Saskatchewan, Manitoba, and Prince Edward Island are all set to raise their minimum wages on that day—Ontario’s reaching $17.20, among the highest in the country—Saskatchewan will increase its rate to $15, matching Alberta’s.
Alberta’s minimum wage has remained unchanged since October 1, 2018, when it was the highest in the country. However, according to Bradley Lafortune from Public Interest Alberta, $15 no longer holds the value it once did. The non-profit, which advocates on public interest issues, is calling for a minimum wage increase to $25 to meet the living wage standard across most of Alberta, with the exception of higher-cost areas like Fort McMurray and tourist towns such as Banff, Canmore, and Jasper.
“A living wage is crucial in Alberta, where many are struggling to make ends meet as the cost of groceries, rent, utilities, and mortgages rises,” said Lafortune.
Gil McGowan, president of the Alberta Federation of Labour, echoed these concerns, advocating for a minimum wage of $19 per hour that adjusts with inflation. He highlighted the increasing cost of living and the lack of any wage hikes in the past six years.
However, the Canadian Federation of Independent Business (CFIB) stresses the importance of balancing wage hikes with the needs of small businesses. Bradlee Whidden, CFIB’s policy analyst for Western Canada, emphasized that wage increases should be predictable and linked to factors like median wages or labor productivity. He warned that unpredictable increases could harm small businesses, leading to higher prices and reduced labor.
Alberta’s Minister of Jobs, Economy, and Trade, Matt Jones, acknowledged the importance of minimum wage but warned that significant changes could negatively impact small businesses and part-time workers. He pointed out that Alberta already benefits from the lowest provincial income tax rates and no provincial sales tax.
Lafortune believes tax credits, grants, and job-training programs could support small businesses through the transition to a higher minimum wage, which he argues would benefit the local economy by increasing consumer spending at Alberta’s small businesses.
“We can’t afford not to raise the minimum wage,” he said. “Now is the time.”
As of Tuesday, Manitoba’s minimum wage will rise to $15.80, and P.E.I.’s will reach $16.
