Categories
Alberta Politics

253,900 Albertans got a raise this month

Labour Minister Christina Gray with Lynsae Moon, co-owner of the Nook Café. (Photo: Government of Alberta)

Alberta’s minimum wage jumped to $15 per hour on October 1, 2018, making our province the first in Canada to reach this mark. The New Democratic Party promised to raise the minimum wage as part of its platform in the 2015 election and quickly began a 3-year phased increase to the minimum wage shortly after Premier Rachel Notley formed her government.

Rachel Notley Alberta Premier NDP
Rachel Notley

The $15 minimum wage will make life more affordable for women, single parents, families and everyone who has been working a full-time job or more but is still struggling to put food on the table and pay their rent,” Labour Minister Christina Gray said in a September 28 press release.

According to the Alberta Low Wage Profile, the number of employees with average hourly earnings of less than $15 per hour in Alberta decreased from 292,400 in 2016 to 253,900 in 2018. The profile also shows that Alberta has the lowest percentage of low wage earners among the Canadian provinces, followed by Saskatchewan.

The phased-in increase to minimum wage is a challenge that business owners who pay poverty level wages had been forced to confront. And not surprisingly, business owners and their lobby groups have taken issue with the increases since they began after 2015.

Some business owners have warned that pay increases could lead to increased costs for consumers. There is no doubt that an increase to the minimum wage will increase costs for employers, but I am sure they have already found many Albertans will not mind paying a little bit more knowing that the employees who serve their coffee, prepare their lunches, or stock their grocery store shelves are paid better than they were last month.

The leaders of Alberta’s two main conservative parties, Jason Kenney of the United Conservative Party and Stephen Mandel of the Alberta Party, have floated the idea of a lower minimum wage for workers under the age of 18 or workers in the service industry.

Stephen Mandel Health Minister Alberta Edmonton Whitemud MLA
Stephen Mandel

Mandel went into detail with his proposal to lower the minimum wage for certain Alberta workers, lowering the rate to $13.60 an hour for workers 17 and under and to $14 an hour for servers who earn tips.

It makes little sense to penalize or devalue the work of the lowest paid workers in Alberta because of their age or the industry they work in. This kind of thinking presumes that most young workers are just earning pocket money to buy V-Bucks for Fortnite and not saving to pay for post-secondary education, helping pay the bills at home or trying to raise their own families.

Around 63 per cent of minimum wage earners are women, more than 37 per cent of minimum wage earners are parents, including around 14,300 who are single parents.

A pay cut for low wage workers could be part of Bill 1: The Free Enterprise Act, which Mandel announced at a gathering of the Edmonton Chamber of Commerce earlier this month would be the first law passed by an Alberta Party government. He was mum on what else would be included in this bill, but as the NDP have already lowered the small business tax rate from 3 per cent to 2 per cent, it is possible Mandel would like to see the tax completely abolished.

Kenney initially played coy on the topic, saying he had no plans to roll back the $15 per hour wage but in a speech to the Calgary Chamber of Commerce last week he went into detail about his willingness to adopt a system of lower minimum wages based on age or industry.

Jason Kenney Alberta Politics
Jason Kenney

While Kenney was not specific about how far be would roll back wages for young workers, recent UCP leadership candidate Doug Schweitzer, who is now the party’s star candidate in Calgary-Elbow, said last year that he would cut Alberta’s minimum wage by 18.7 per cent from $15 per hour to $12.20 per hour, because it is the “right choice for Albertans whose livelihoods count on it the most.

Kenney also stated he plans to repeal labour law reforms implemented by the NDP, which updated many Alberta laws not changed since the 1970s. It is not clear whether this would include the occupational health and safety code updates, or other changes expanding compassionate care leave, maternal and paternal leave, holiday pay, and the clarification of termination and temporary layoff rules.

While most media attention is focused on small and medium sized businesses who have had to increase their staff salaries, poverty level wages are not just unique to the private sector.

Support staff including educational and financial assistants, library clerks, maintenance staff, secretaries, typists and custodians who work for the Living Waters Catholic School District in Edson, Whitecourt and Slave Lake are on strike because they were fed up with irregular working hours and low salaries. Some staff members have been turning to their local food bank to make ends meet, according to the Alberta Union of Provincial Employees, the union representing these workers.

Doug Schweitzer Calgary Alberta Conservative
Doug Schweitzer

The $15 per hour minimum wage was a step in the right direction, but it is still lower than the what is considered to be a living wage in some of Alberta’s urban areas.  Vibrant Communities Calgary estimated in 2017 that the Living Wage in Calgary is $18.15 per hour, the Edmonton Social Planning Council says a living wage in the province’s capital city is $16.31 per hour, the City of Grande Prairie estimated $17.35 per hour, while in 2016 Central Alberta Poverty estimated that the living wage in Red Deer and Central Alberta was between $13.71 and $14.10 per hour.

Increasing the minimum wage is not a silver bullet to eliminating poverty in our province, but raising the minimum wage to $15 per hour will make a big difference in the lives of a lot of working Albertans. 


While the current crop of conservative political leaders have decried the wage increase for Alberta’s lowest paid workers, conservative politicians in the recent past have praised increases to the minimum wage:

This increase to Alberta’s minimum wage is good news for Albertans,” said Premier Ed Stelmach in June 2007, when the minimum wage was raised from $7 per hour to $8 per hour.

Minimum wage offers protection for workers,” said Minister of Employment, Immigration and Industry Iris Evans, also in June 2007. “It sets the minimum rate of pay that employers must meet and ensures that workers, especially women and youth, who traditionally are in the lower income occupations, are making a better wage.”

We want to ensure that Albertans earning the minimum wage are as protected as possible during these changing times,” Minister of Employment and Immigration Hector Goudreau said in March 2009, when the minimum wage increased from $8.40 per hour to $8.80 per hour.


RAGE against the Government

Luke Ouellette Alberta MLA Innisfail-Sylvan Lake
Luke Ouellette

In light of Kenney’s comments this week about decreasing the minimum wage for young workers, the UCP leader also floated the idea of creating a Minister responsible for de-regulation and cutting red tape. This is not a new idea.

In November 2004, Premier Ralph Klein appointed Innisfail-Sylvan Lake MLA Luke Ouellette as Alberta’s only-ever Minister of Restructuring and Government Efficiency. Known by the nickname the “Ministry of RAGE,” the department quickly became an oxymoronic joke because was a government bureaucracy created for the purpose of cutting government’s bureaucracy.

Aside from some responsibilities related to the Alberta SuperNet that were previously handled by another government department, it was never clear what exactly the RAGE Ministry ever accomplished. And before Albertans could ever find out, the position was eliminated and, in December 2006, Ouellette was appointed Minister of Infrastructure and Transportation.

History will show that the Ministry of Restructuring and Government Efficiency was most notable for eliminating the Office of the Minister of Restructuring and Government Efficiency.

Categories
Alberta Politics

Child poverty a problem worth eliminating in wealthy Alberta

November 24, 2014 marked 25 years since members of the Canadian Parliament voted unanimously to end child poverty in our country. The motion introduced by then-NDP leader Ed Broadbent supported abolishing child poverty in Canada by the year 2000.

Twenty-five years later, we are far away from reaching this goal.

Although Alberta has benefited from rapid economic growth, not everyone has shared in this prosperity. The Edmonton Social Planning Council, Alberta College of Social Workers and Public Interest Alberta released a new report on Nov. 24 showing that 143,200 children in our province lived below the low-income measure in 2012.

Alberta Child PovertyThe numbers in the report are depressing but important to recognize. According to the report, the percentage of Alberta children living in poverty is essentially unchanged since Mr. Broadbent’s motion was passed in 1989.

Unemployment is not necessarily the main cause of child poverty in Alberta. The report shows that in 2011, a record high of 59.2% of children in poverty lived in a household where one or more persons were working full-time job.

According to the report, Alberta’s income inequality has increased faster than the national average, with the top 1% of earners seeing real income increases of over 60% since 1982 while the bottom half of income earners only saw a small increase of 3.4%.

The report also shows that in March 2014, more than forty-nine thousand Albertans accessed food banks, an increase of 2.3% from  2013 and 48.2% higher than in 2008.

The recent Homeless Count found 2,252 people without a home in Edmonton, an increase of 3.5% from 2012. The number of youth increased by 17% from 481 to 562. Of all those counted in the survey (including non-youth), 47% identified as being of Aboriginal heritage.

But despite an intense political focus in Alberta on low taxes and oil pipeline expansion, the discussion around income-inequality and eliminating poverty has gained some attention in recent years.

Poverty Parents Working Alberta

In March 2014, Edmonton Mayor Don Iveson named a task force on Poverty Elimination to develop a plan with recommendations to eliminate poverty in the city.

“There are over 100,000 Edmontonians living below the poverty line, 30,000 of whom are children. For me, that is not acceptable,” Mr. Iveson said in a press release earlier this year.

Speaking to a group of Edmontonians during a break from budget hearings last week, Mr. Iveson explained some of the ways Edmonton can help contribute to the reduction of child poverty through public library education programs and reduced-fee transit passes for low-income parents.

“Poverty elimination will be the result of good prevention,” Mr. Iveson said, as he explained the need for a renewed focus on the social determinants of health.

“If we don’t deal with some of those things proactively they can become policing challenges, which is the most expensive thing we do,” he said.

As city governments are limited in their resources compared to provincial and federal governments, he spoke to the need for municipalities to pressure MLAs to make much needed funding increases to Family and Community Support Services.

During the 2012 election, Progressive Conservative leader Alison Redford promised the creation of a ten year strategy to end poverty in Alberta, which would include a five-year plan to eliminate child poverty and a plan to address the root causes of poverty. Following Ms. Redford’s departure, it is suspected that a strategy will not be released until next year. But it remains unclear how Premier Jim Prentice will approach this issue.

Despite our prosperity, Mr. Prentice is pleading poverty due to slightly deflating world oil prices and is already suggesting education funding cuts are likely in next year’s budget.

It is shameful that child poverty in Canada still exits in 2014, twenty-five years after every Member of Parliament stood and committed to eliminating it by 2000. And in a wealthy and prosperous jurisdiction like Alberta, where we have the financial means and ingenuity to ensure every resident can live outside of poverty, there is no excuse why child poverty still exists.

Read the reportNo Change: After 25 years of Promises it is Time to Eliminate Child Poverty.

Listen: Ed Broadbent’s interview with CBC’s The Current on the 25th anniversary of the motion to end child poverty