Saskatchewan NDP says $15 not enough for minimum wage

While Saskatchewan’s NDP is glad to see a $15 minimum wage on the way for the province, the party’s labour critic said the increase is too little and coming too late.

“It’s important that we’re seeing an increase for workers at a time of crucial affordability crisis in this province, so I do want to recognize that it will be a good step for workers,” conceded Jennifer Bowes. “But (it’s) not going far enough for workers at a very crucial time where they’re struggling in our province.”

The government announced Tuesday the minimum wage will increase from $11.81 per hour to $13 per hour on Oct. 1. It then will increase to $14 on Oct. 1, 2023, and $15 on Oct. 1, 2024.

Bowes pointed out that when the minimum wage goes up this fall, Saskatchewan will then have the second-lowest minimum wage in the country instead of the lowest, the province’s current place.

The NDP campaigned on a $15 minimum wage in the 2020 provincial election. Bowes does see this move as a partial win but said that’s no longer a living wage in Saskatchewan – it has gone up.

Bowes quoted the Canadian Centre for Policy Alternatives, which puts a living wage in Regina and Saskatoon at between $16 and $17 an hour, but the province won’t get to $15 for a minimum until 2024.

“It should have been $15 an hour years ago,” said Bowes.

The labour critic also thinks the increase should be implemented immediately to help people who are struggling instead of seven months into the future.

Don Morgan, Saskatchewan’s labour relations minister, defended the minimum wage moves on Tuesday. He said the government had been watching other provinces’ minimum wages.

“We were watching and as other provinces were increasing, we realized we were falling to the back and now, in recent times, we’ve had a very serious round of inflation and we thought it was time to make a market adjustment,” said Morgan.

The previous formula took the midpoint between the average hourly wage in the province and the Consumer Price Index. Morgan admits it had the province falling behind, but claims the formula served the province well for almost a decade.

Saskatchewan will resume using the formula after this increase schedule is finished in 2024. Morgan said if there’s a reason to adjust the formula at that time, then the government will look at it.

The minimum wage rising to $15 an hour wasn’t precipitated by any calculations, according to Morgan. He said it’s where other provinces seemed to be headed and it seemed reasonable.

The increase is phased in over the next 2 1/2 years, which Morgan believes will give businesses time.

“It gives a bit of a cushion and a timing for people to do it and we think it should be a workable compromise,” said Morgan.

Among the changes businesses might have to make, according to Morgan, is increasing prices.

“We’re dealing now with a fairly inflationary spiral that’s moving faster than most people had anticipated. Workers are mostly affected. We want to give some time to employers and businesses to adjust,” said Morgan.

Five of the 13 provinces and territories currently have a minimum wage of at least $15 an hour. Nova Scotia is currently at $13.35 but also has a plan to get to $15 an hour in 2024 and will adjust the minimum wage with inflation plus one per cent after that.