ALF V1

On April 1, Alberta's minimum wage increased from $8 to $8.40 per hour. In June 2007 the Alberta government announced the increase to minimum wage would be based on the average weekly wage index. The index is based on Statistics Canada's annual survey of employment, payroll and hours.

Ponoka-Lacombe MLA Ray Prins thinks that the increase is a positive move.

"I think it is a good move. It is keeping up with the general inflation with rates over the province. We have tied it to the average weekly wage index so this is a good move for people on minimum wage," said Prins. "All jobs have a value according to supply and demand and the minimum wage is basically a starting wage for young people or low skill people or part-time jobs."

Michelle Stirling, job search advisor for Ponoka Employment Services, a sub-contractor to Alberta employment and immigration thought it was a step forward. However, she thinks that the cost of living in most centres is much higher than this incremental raise.

"For the employer any change in the wage ratio has an impact on their margins so even though employees would like and need a higher raise employers always have to struggle with the consequences, especially smaller business," said Stirling.

With the current increase Alberta's minimum wage remains the highest in Canada after taxes. Before taxes, Alberta will have the third highest minimum wage among provinces behind Ontario ($8.75) and Manitoba ($8.50).

"I'd say most people are paying above that anyway it is such a volatile economy right now. I suspect we are going to see rises in things such as food with the rising prices of oil world wide," said Stirling. "So these types of increases will always be a bit behind because they are legislated and there is a whole process involved with a wage change and it takes time."

The Canadian Federation of Independent Business Alberta director Danielle Smith had a few problems with the increase. She thought that there was a lack of consultation with businesses and that businesses were not given enough time to adjust to the new announcement. In June 2007, the increase was announced, it increased from $7 to $8 on Sept. 1, 2007 and went from $8 to $8.40 on April 1, which was announced on March 18.

Prins said that in the future the notice will not be a problem.

"Industry now knows that minimum wage will be connected to the average minimum wage index and from time to time there may be an increase, if this goes down the minimum wage will not go down," said Prins.

Smith says that most of the employers have had to increase wages and that very few people are currently making minimum wage. Those who are making minimum wage are in the hospitality industry and low skill workers. She also feels that the new increase will have a large impact on all employers.

"When minimum wage goes up it causes wage inflation because somebody who is currently making $8.40 an hour they now want an increase as well," said Smith. "There are lots of occupations where they try to keep a certain differential, you can see this bump up a wage scale of a variety of contracts. It has a much broader effect on the overall cost of the salaries that are being paid to workers." The CFIB's annual Help Wanted report showed that 6.3 per cent of jobs in Alberta firms went unfilled for at least four months in 2007, the same as in 2006. They estimate that is the equivalent of 54,000 jobs.

Prins hopes that the wage increase will help the work shortage.

"In general it is a move in the right direction for people on minimum wage. The whole shortage of labour in Alberta is a problem for employers right across the board hopefully this will help a little bit to attract some workers into the work force."

The Alberta Federation of Labour approved of the increase but president Gil McGowan said it was not enough.

"We estimate that a living wage right now in the province would have to be at least $10 per hour. What the government needs is a minimum wage that actually reflects the high cost of living in Alberta," said McGowan in a press release. "A minimum wage, after all should prevent full-time workers from living below the poverty line."

The 2007 Alberta Wage and Salary Survey was commissioned by the governments of Alberta and Canada to provide information on wages and salaries for full and part-time employers by occupation, region and industry. Nearly 3,000 employers participated in the survey covering more than 400 different occupations and representing almost 200,000 full and part-time employees.

The survey found that Alberta's average wage rate was $23.90 per hour. Cashiers in Alberta were on average making $9.63, administrative clerks made $19.23, oil and gas workers $30.12 and managers in health care made $34.49.

In the Red Deer region food and beverage servers made $8.59 compared to the provincial average of $8.78. Truck drivers in the Red Deer region made $18.91 compared to the provincial average of $24.71. Accountants in the Red Deer region made $41.85 compared to the provincial average of $25.66.

Ponoka News, Wed Apr 2 2008
Byline: Tiffany Williams

When people find out they are going to be making more money, it is usually cause for celebration. The recent increase of Alberta's minimum wage however, has launched a new episode of debate on the fallout of increasing base earnings in the province.

While the Alberta Federation of Labour (AFL) was pleased with the recent minimum wage hike, they claim it still isn't enough to match the cost of living. "The province's senior labour central contends that the increase is too small because the base rate is too low." On April 1 of 2008, the minimum wage will increase from the current $8 an hour standard to $8.40.

The AFL's position is that while they welcome any increase in the minimum wage, the recent hike just isn't enough. AFL President Gil McGowan says, "We estimate that a living wage right now in the province would have to be at least $10 per hour. So the government-mandated increase to $8.40 per hour as of April 1 this year is actually very disappointing."

In 2007, average weekly earnings increased 5 per cent, so minimum wage will increase 5 per cent from $8.00 to $8.40 per hour. "The problem with linking minimum wage increases to the growth in average weekly earnings is that it assumes that the phenomenal growth taking place in some municipalities and industry sectors is happening everywhere," said the Canadian Federation of Independent Businesses, which contends that the increase will hurt small business owners. "This change could have a severely negative impact on employers in certain regions and industry sectors that are not experiencing a sharp increase in economic growth, particularly smaller municipalities and the restaurant and tourism industry."

In a resource-based economy like Alberta's, where the economy continually fluctuates, therecould easily be a situation where entry-level labour is priced too high. That could in the long run decrease the number of jobs, especially for entry-level workers.

British Columbia addressed this problem by creating a lower minimum wage for entry level workers, which is basically a "training wage" that allows business owners to compensate for the investment required to train new employees. Quebec and Nova Scotia have similar alternatives.

As of January 1, 2008, Alberta ranked near the middle of Canadian provinces in minimum wage, even though Alberta does have the lowest income taxes of any Canadian province. Ontario's minimum wage is scheduled to exceed $10 in 2009, and even with the increase, Alberta will still be below the minimum wage standards in Nunavut, Manitoba and the Yukon.

According to the Consumer Price Index (CPI) survey, in 2007 Calgary and Edmonton had the highest costs of living of any major Canadian city. That statistic is very surprising, in light of the fact that Calgary and Edmonton were being compared to cities who are generally thought of as having higher costs of living: cities like Toronto, Vancouver, and Ottawa. The CPI statistics are based on the costs of housing, household items, food, transportation, etc. In fact, the index showed that Alberta cities hadmuch higher costs of living than did any of the cities with a higher minimum wage.

Those that oppose minimum wage increases say that it leads to major problems, especially for small business owners. A higher minimum wage, they claim, can lead to higher unemployment, increases in prices to consumers, less recruitment of new employees, and less employee benefits.

The AFL says that right now in Alberta, there are only about 70,000 workers making minimum wage, with many more earning an hourly wage just above the minimum. "What Alberta workers need is a minimum wage that actually reflects the high cost of living in Alberta," said McGowan. "A minimum wage, after all, should prevent full-time workers from living below the poverty line."

That poverty line in the year 2000, for a family of four, was just above $32,000 in the city of Calgary. After the increase in April, making $8.40 an hour, the average worker putting in 40 hours a week with no vacation would gross little over $17,000 annually, before taxes. It should also be noted that Edmonton has recently experienced the highest increase in poverty of any Alberta city.

Premier Stelmach has said that only 3.5 per cent of Albertans earn minimum wage, with most of those being teenagers. However, raising the minimum wage has an impact on all hourly wage earners. Even with a minimum wage increase to $10 an hour, working 40 hours a week with no vacation, the Alberta worker earning minimum wage would barely eclipse the $21,000 annual earnings mark, still well below the year 2000 poverty line.

While it is a relatively low number of workers in the province that currently earn minimum wage, it is apparent that those workers are not able to sustain themselves, and that conclusion is reached using eight-year-old statistics. Since the year 2000, the cost of living has climbed dramatically. While there are consequences for increases in minimum wages, it does go a long way in improving the quality of life for those Albertans presently earning minimum wage who can barely get by, and has recipricol effects on thousands of other workers.

Barrhead Leader, Tues Apr 1 2008
Byline: Andrew Coffey

EDMONTON - Alberta's minimum wage hike kicks in on April Fool's Day, but an organization representing labour groups suggests $8.40 cents an hour is still a sad joke.

The Alberta Federation of Labour says the province's high cost of living means the minimum wage should be set closer to $12 an hour. Alberta's minimum wage was previously $8 an hour.

Premier Ed Stelmach announced the increase earlier this month, saying it will ensure that people on the low end of the wage scale share in the province's prosperity.

But federation president Gil McGowan says Alberta should be leading the country when it comes to minimum wages, given its booming economy.

With the increase, Alberta's minimum wage is the third highest in Canada behind Ontario's rate of $8.75 and Manitoba's $8.50.

"At the new level of $8.40 our minimum wage won't even come close to being a living wage," McGowan said Monday in a news release.

Alberta sets its minimum wage based on Statistics Canada survey information and the average weekly wage index.

McGowan says that's a good thing, but adds the government needs to get the base right.

Stelmach estimates that about 70,000 people earn the minimum wage in Alberta, most of them teenagers working in the restaurant and hospitality industries.

Many businesses in the fast-food industry already pay their employees more than the minimum wage because of the province's labour shortage.

Brandon Sun, Tues Apr 1 2008

An Alberta labour organization says the province's 40-cent wage hike on April Fool's Day is a sad joke.

The increase, effective Tuesday, boosts Alberta's minimum wage to $8.40 an hour from $8.

The Alberta Federation of Labour said the province's high cost of living means the minimum wage should be set closer to $12 an hour.

"At the new level of $8.40, our minimum wage won't even come close to being a living wage," Federation president Gil McGowan said in a release issued Monday.

He said Alberta should be leading the country in terms of minimum wage, given its booming economy.

With the hike, the province boasts the third highest minimum wage in Canada, behind Ontario with $8.75 and Manitoba at $8.50.

The province automatically adjusts its minimum wage every April based on the average weekly wage index that consists of data on jobs, payroll and hours compiled by Statistics Canada.

McGowan says that's a good thing, but adds the government needs to get the base right.

According to the province, about 3.5 per cent of working Albertans, or 70,000 people, make minimum wage. The majority are teenagers working in the food and hospitality industries.

Many businesses in the fast-food industry already pay their employees more than the minimum wage because of the province's labour shortage.

CBC.ca, Tues Apr 1 2008

The head of Alberta's largest labour group is calling out the provincial government for what he says is a "drop in the bucket" when it comes to the minimum wage.

The rate increases as of Tuesday, April 1st is from $8 to $8.40 an hour.
The Alberta Federation of Labour says with the cost of living so high in this province, the minimum wage should be at least $12.

Federation President Gill McGowan says he doesn't buy the provincial government's argument only a small number of Albertans actually get paid the minimum.

Alberta Employment and Immigration spokesperson Janice Schroeder says they look at the average weekly wage and adjust the minimum based on that.

Not factoring in taxes, Alberta's minimum wage is third in the country behind Ontario and Manitoba.

CHQR Newsroom, Tues Apr 1 2008

Cochrane Times - As of April 1, Alberta's minimum wage will increase from $8 to $8.40 per hour. According to Premier Ed Stelmach, the wage increase will ensure that it keeps pace with other salary increases in Alberta.

"Alberta's experiencing a time of great prosperity," Stelmach said. "Wages have increased about five per cent and we're ensuring minimum wage earners are sharing in this growth."

Last June, the provincial government announced that increases to the minimum wage would be based on the average weekly wage index and would come into effect April 1, 2008. The index is based on Statistics Canada's annual survey of employment, payroll and hours.

"With Alberta's vibrant economy and low unemployment, most employers are already paying more than minimum wage," Minister of Employment and Immigration Hector Goudreau said.

However, not everyone in Alberta is impressed with the increase. The Alberta Federation of Labour (AFL) contends that the increase is too small, because the base rate is too low.

"Alberta's current minimum wage is simply too low," AFL president Gil McGowan said. "We estimate that a living wage right now in the province would have to be at least $10 per hour, so the government-mandated increase to $8.40 per hour as of April 1 this year is actually very disappointing."

McGowan added that Alberta workers need a minimum wage that actually reflects the high cost of living in the province.

"A minimum wage, after all, should prevent full-time workers from living below the poverty line," he said.

About 70,000 people, or 3.5 per cent, of working Albertans make minimum wage.

The majority are 15- to 19-year-olds working in the food service and hospitality industries.

Despite the fact that with the increase, Alberta's minimum wage remains the highest in Canada after taxes, McGowan proposes to first raise the minimum wage to $10 per hour and then index it.

"Let's start with a realistic and fair minimum wage - and then take it from there," he said.

Even before taxes, Alberta will have the third-highest minimum wage among the provinces, behind only Ontario ($8.75) and Manitoba ($8.50).
Employers and employees with questions about minimum wage can contact the Employment Standards contact centre at 780-427-3731 (toll-free in Alberta by first dialing 310-0000) or visit: www.employment.alberta.ca/es for more information.

Cochrane Times, Wed Mar 26 2008
Byline: Stacie Snow

Alberta's minimum wage will increase from $8 to $8.40 per hour on April 1.

"Alberta's experiencing a time of great prosperity," said Premier Ed Stelmach, adding that the wage increase will ensure that it keeps pace with other salary increases in Alberta.

"Wages have increased about five per cent and we're ensuring minimum wage earners are sharing in this growth."

Last June, government announced increases to minimum wage would be based on the average weekly wage index and come into effect on April 1.

The index is based on Statistics Canada's annual survey of employment, payroll and hours.

"With Alberta's vibrant economy and low unemployment, most employers are already paying more than minimum wage," said Hector Goudreau, Minister of Employment and Immigration.

However, not everyone in Alberta is impressed with the increase.

The Alberta Federation of Labour (AFL) contends that the increase is too small because the base rate is too low.

"Alberta's current minimum wage is simply too low," said AFL president Gil McGowan.

"We estimate that a living wage right now in the province would have to be at least $10 per hour. So the government-mandated increase to $8.40 per hour as of April 1 this year is actually very disappointing."

McGowan added that Alberta workers need a minimum wage that actually reflects the high cost of living in Alberta.

"A minimum wage, after all, should prevent full-time workers from living below the poverty line."

About 70,000 or 3.5 per cent of working Albertans make minimum wage.

The majority are 15 to 19 year olds working in the food service and hospitality industries.

Despite the fact that with the increase, Alberta's minimum wage remains the highest in Canada after taxes, McGowan proposes to first raise the minimum wage to $10 per hour and then index it.

"Let's start with a realistic and fair minimum wage -- and then take it from there," he said.

Even before taxes, Alberta will have the third highest minimum wage among provinces, behind only Ontario ($8.75) and Manitoba ($8.50).

Employers and employees with questions about minimum wage can contact the Employment Standards Contact Centre at 780-427-3731 (toll free in Alberta by first dialing 310-0000) or visit employment.alberta.ca/es for more information.

Alberta's minimum wage will jump to $8.40 per hour from $8 per hour on April 1, making it the highest minimum wage in Canada after taxes, but the Alberta Federation of Labour says it's still not enough.

Last June, the province announced that the minimum wage would be adjusted according to the average weekly wage index beginning in April. The index is based on an annual survey of employment, payroll and hours provided by Statistics Canada.

This year's five per cent increase is due to a 4.7 per cent increase in Alberta's average weekly wages from January 2007 through December 2007, according to Stephanie Francis of Alberta Employment and Education.

"It was rounded up to make it easier for payroll, for employers. And it's also more understandable for everyone as well," she said.

Because minimum wages are based on the average weekly wage index there are two possible outcomes, according to Francis.

If the average weekly wage increases, the minimum wage increases by the same per cent. If it remains the same or decreases, the minimum wage will stay the same.

"The minimum wage will never decrease," Francis said.

Though Gil McGowan, president of the Alberta Federation of Labour, approves of the government's decision to have minimum wage increased according to the average weekly wage index, he said it still doesn't allow for an adequate income.

He said the minimum wage should have been adjusted to the average weekly wage index years ago and it has limited effect now because the base rate is too low.

"The real value of the minimum wage has eroded substantially," McGowan said.

"Eight dollars and forty cents is simply not enough to keep someone out of poverty anywhere in Alberta, especially in high-cost locations like Fort McMurray, Calgary, Edmonton, even Fort Saskatchewan," he said.

"At that wage you would have to work 100 hours per week to keep yourself above the poverty line."

McGowan said he would like to see the base rate increased to about $11 to $12 per hour and then have it indexed as it is.

"Until that happens, the minimum wage in this province still won't be doing what it is supposed to be doing."

But Francis said the majority of those earning minimum wage are younger than 20 years old.

"Many of them are still living at home and this is a way for them to earn a little extra money that they might like to have," she said, adding that Alberta's minimum wage is meant to keep pace with minimum wages across the country.

Before taxes, Alberta will have the third highest minimum wage in the country come April 1. Only Ontario and Manitoba have higher minimum wages.

According to Alberta Employment and Immigration, 3.5 per cent of Alberta workers, about 70,000 people, are earning minimum wage. The majority are 15 to 19 years old and are working in food services and hospitality.

Francis said the next potential increase could come in April 2009.

Fort Saskatchewan Record, Tues Mar 25 2008
Byline: Paul Grigaitis

CALGARY -- Alberta's higher minimum wage set to kick in April 1 is progress but condemns the lowest earners to continued poverty, a union leader said yesterday.

Premier Ed Stelmach hailed the increase of the bottom wage to $8.40 from $8 as a means of helping mainly service industry workers keep pace with the booming province's rising cost of living.

"This will ensure minimum-wage earners share in Alberta's continued economic prosperity," said Stelmach, adding the 4.6% hike reflects the general increase in Alberta wages over the past year.

While welcoming the increase, Alberta Federation of Labour president Gil McGowan said the rate level puts low-income earners permanently behind the economic curve.

Edmonton Journal, Wed Mar 19 2008

Edmonton--Although the Alberta Federation of Labour (AFL) wholeheartedly approves of the Alberta government's announcement of an automatic increase to the minimum wage in the province, the province's senior labour central contends that the increase is too small because the base rate is too low.

"I commend the government for having put in place an automatic mechanism to increase the minimum wage every year," says AFL President Gil McGowan. "Labour has been asking for that for a long time and it is gratifying to see it in action. It will prevent the real minimum wage from shrinking constantly due to inflation - as it did so often in the past."

"However, Alberta's current minimum wage of $8.00 per hour is simply too low," says AFL President Gil McGowan. "We estimate that a living wage right now in the province would have to be at least $10.00 per hour. So the government- mandated increase to $8.40 per hour as of April 1^st this year is actually very disappointing."

"What Alberta workers need is a minimum wage that actually reflects the high cost of living in Alberta," says McGowan. "A minimum wage, after all, should prevent full-time workers from living below the poverty line."

McGowan also points out that although only about 70,000 workers are currently at the minimum wage, any increase in the minimum has a ripple-through effect that raises the wages of many, many thousands more workers who are currently earning near the minimum wage.

McGowan proposes first raising the minimum wage to $10.00 per hour and then indexing it. "Let's start with a realistic and fair minimum wage - and then take it from there," concludes McGowan.

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For more information contact:

Gil McGowan, AFL President @ 780.483-3021 (office) or 780.218-9888 (cell)