On June 1, people who earn minimum wage in British Columbia saw an increase in their general hourly wage, moving from $11.35 per hour to $12.65.
The $1.30 increase comes as a result of a recommendation from the independent Fair Wages Commission, which was established in 2017, for the goal of advising Canadian provincial governments to provide minimum wage workers with an hourly wage that is regular, measured and predictable.
This increase also stems from the BC NDP’s election promise of raising the minimum wage to at least $15 per hour. According to Premier John Horgan, this is the first of four annual increases that will occur every year on June 1 until 2021, aiming to fulfill the aforementioned promise which will ultimately result in a $15.20 per hour minimum wage.
On June 1 of next year, the new minimum wage $12.65 per hour will see another $1.20 increase, bringing the wage to $13.85 per hour. In subsequent years, the wage will increase to $14.60 per hour in 2020 and finally $15.20 per hour in 2021.
“We have strong economic growth in British Columbia and the (Fair Wages Commission’s) rationale for front-end loading the increases was because we have a robust economy in British Columbia and the expectation is that’s going to going to continue for the next two years,” says Horgan. “Looking beyond that, forecasters will tell you that the only thing certain about forecasts is that they will be wrong.”
Liquor servers also saw a $1.30 per hour increase which resulted in a minimum wage of $11.40. Some employers have voiced concern and disputed the wage increase, as liquor servers tend to receive a substantial amount more in tips.
That argument was dismissed, however, as not all servers who work in establishments that do have a liquor license can comfortably rely on that supplementary income. Ultimately, BC NDP hopes to scrap the separate lower liquor server wage altogether.
Resident caretakers and live-in camp leaders also saw an 11.5 per cent increase to their respective minimum wages. Furthermore, the alternate minimum wage for live-in home support workers has been eliminated, as general minimum wage will now apply for all hours they have worked.
However, per a report issued by the Fraser Institute, this minimum wage increase will not realistically help those most in need.
Per the major findings of the report, the Fraser Institute states that despite the good intentions on behalf of the BC NDP, raising the minimum wage is not an effective way to alleviate poverty primarily because the policy fails to provide help targeted to families living in poverty.
The Fraser Institute report continues to state that per the most recent data, 84.3 per cent of workers earning minimum wage in British Columbia do not come from or live in a low-income family, with the findings reporting that only 2 per cent of minimum wage earners in the province are single parents with young children.
Charles Lamman, one of the authors of the report, believes that raising the minimum wage is an ineffective way of targeting those most in need, as data shows that the 55.7 per cent of workers who earn minimum wage are under the age of 25, with 77.9 per cent of those still living with a parent, guardian or other relative.
Instead, Lamman suggests that a work-based subsidy is a far more effective policy, since it effectively targets those in need without the potential negative economic consequences, such as higher prices, that a minimum wage increase can create.
Nonetheless, British Columbia now boasts the fifth highest minimum wage in Canada, sitting behind Ontario at $14 per hour, Alberta at $13.60 per hour, the Northwest Territories at $13.46 per hour and Nunavut at $13 per hour, respectively.
