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Tying the Minimum Wage to Average Wages is Good, Tying it to the Poverty Line Would Be Better |
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The April 1 increase in the minimum wage to $8.40 per hour should not have caught anyone by surprise.
Tying the minimum wage to changes in the average provincial wage and adjusting it annually - was announced last summer by the Stelmach government. Since average wages went up five per cent in 2007, the minimum wage is going up by the same percentage.
Many groups and individuals including the Council - concerned about reducing poverty among low income working families have been urging the government to inflation proof the minimum wage. After all, provincial MLAs have linked their annual salaries to the average earnings of Albertans for the past ten years. If MLAs dont have to worry about losing ground to inflation, why should the lowest paid workers in the province?
So while the governments decision is commendable and long overdue, $8.40 per hour is still a poverty wage. The minimum wage would need to be at least $10.00 before a single person working full-time all year would make enough to be above the poverty line, as measured by Statistics Canadas low income cut-off. If the minimum wage earner was the primary breadwinner for their family, they would be mired even deeper in poverty.
Adjusting the minimum wage to match increases in average wages is a forward step. Ensuring that no full-time minimum wage earner lives in poverty would be even better.
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