The NDP government’s hike of the minimum wage in the province by a loonie to $11.20 on Oct. 1 has come under fire by local opposition politicians, who call the increase an “unnecessary risk.”
“I talked to a small business owner in Olds that is fearful if the NDP continues on this path, they’ll actually have to close their business,” Olds-Didsbury-Three Hills MLA and Wildrose House Leader Nathan Cooper said. “This is just the wrong approach to solving a problem.
“It’s going to create numerous other problems and this is (just) not the right time.”
The increase follows an NDP plan to raise the minimum wage to $15 per hour by 2018. As part of this year’s increase, on Oct. 1 liquor servers will see their wages increase to $10.70 per hour, up from $9.20 and the current general minimum wage in the province will increase from $10.20 to $11.20 per hour. Differences between the two minimum wages will be eliminated by 2016, leaving Alberta with just one minimum wage.
Lori Sigurdson, Alberta Minister for Jobs, Skills, Training and Labour, said this year’s increase was the first step to fulfilling a campaign promise.
“Minimum wage in Alberta has fallen behind the earnings of Albertans in general,” she said in an email to the Rocky View Weekly. “It is our skilled, educated, ambitious people who make Alberta a great place to start a business and create jobs, not the lowest minimum wage in Canada.
“A fairer, sensibly-implemented minimum wage will continue to make Alberta great.”
Cooper said the general wage increase neglected alternative support systems for low-income Albertans, and suggested a “moderate approach” in the province, including a proposed small business tax decrease.
“(We can also) identify those folks who are in need and create (more) government spending to meet their needs, as opposed to, across the board, increasing the minimum wage,” he said. “In just a few short years, (small businesses) are facing pressures of the minimum wage being $15 an hour. That is going to impact their ability to pay employees.”
Following the Oct. 1 increase, Alberta’s minimum wage will be the second highest in Canada. Ontario is set to increase its minimum wage to $11.25 on Oct. 1.
“Alberta’s minimum wage is currently the lowest in the country, yet we have one of the highest costs of living,” said Premier Rachel Notley in a press release. “We promised Albertans we would raise minimum wage to $15 per hour by 2018, and we will stick to that promise.
“We’re taking a significant step towards our goal for 2015 and will continue this path in future years.”
