CCPA Policy Note

BC’s minimum wage the lowest in Canada

August 31st, 2009 · Iglika Ivanova · 6 Comments · Employment & labour

Tomorrow, September 1, officially marks the day that BC will become the province with the lowest minimum wage in the entire country ($8 per hour). This is because New Brunswick is proceeding with their plans to increase their minimum wage to $8.25.

Meanwhile, BC’s government has repeatedly refused to increase the minimum wage here, claiming that the increase in costs for employers would kill jobs in the service sector (although apparently service sector jobs were not a big concern when the government decided to introduce the HST, bringing in a 7% increase in the cost of restaurant meals).

The best place on earth?

Not for those trying to eke out a living on a minimum wage.

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6 Comments so far ↓

  • Keith Reynolds

    The following is from a government of New Brunswick press release – “Post-Secondary Education, Training and Labour Minister Donald Arseneault said it is important to continue to give individuals and families the opportunity to have a better standard of living; it is also important to help them build a better future in New Brunswick.”

    Imagine BC’s labour minister saying something like that.

  • Ali T

    We have the lowest minimum wage in the country and the highest rate of child poverty. Is there a relationship between the two???

  • Iglika Ivanova

    Keith, the BC Labour Minister Murray Coell was quoted in Metro News yesterday saying: “(Businesses) have got to produce a profit, and if they’ve got more costs they’ll have to look at their employees for layoffs.”

    Clearly, the priorities in the two provinces are different. NB appears to care about people’s livelihoods, BC focuses on business profits.

  • Iglika Ivanova

    I am so fed up with hearing that if we increase minimum wages, the costs for businesses would rise so much that they’d have to lay off workers. First of all, there is a debate among economists about how large this disemployment effect is in practice.

    Second, similar arguments are routinely dismissed when other policy measures are being considered. The HST, for example, will increase costs for the restaurant sector. But have you heard about this causing job losses? How come all the minimum wage nay-sayers are not all over this one? The Vancouver Sun editorial from September 1 explains:

    Money not spent on restaurant meals will be diverted to other uses. There’s no negative macro-economic hit if the restaurant industry contracts, as one analyst bluntly put it.

    This piece essentially argues that productivity and GDP growth in BC is driven by higher-paying goods producing industries that will benefit from the HST. The same point has been made by the BC Business Council.

    Presumably higher-paying industries would not be affected by increases in the minimum wage so why not just be done with it and stop worrying about increasing costs to lower-paying industries? Seriously, if your profit margin is only maintained by paying poverty wages, perhaps you should look for another business plan. But you won’t hear business groups like the BC Business Council making these arguments anytime soon.

    Double standards anyone?

  • Teri

    How does anyone with a family get by on minumum wage? Surely, this is not even possible.

    I would love to see the B.C. cabinet try to make it through a single month on minimum wage. I don’t think they would get very far…..

  • Stace

    This is so sad, it is like the “great depression”. It is like the government is yelling everyone not to bring children into the world. Well, it is not possible to live off $8.00/hour, unless you slave yourself away to 60-80 hours a week just to pay rent or a mortgage, bills, car insurance/gas, food, and other necessities in life. We’re not working in the underground mines, are we? (because it sure seems like it) I haven’t even gotten to the part that is really sad. After paying rent and bills, there is no money left for education. The average university degree costs $40,000.00. The poverty level makes me feel emotional and it’s sad that everyone has to live with everyone else in apartments and condos. That’s not even living anymore. I can honestly say it is discusting to have to hear your neighbours coughing, showering/flushing the toilet, mating, talking, etc. The government needs to step up to the plate and help us to get our houses back or buy a home and live a REAL life, since life on Earth is temporary too.

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