According to recently released data from Statistics Canada, the average weekly earnings of Alberta workers went up ... wait for it... a total of 1.2% in 2009 compared to a year earlier.* While no great surprise since the Alberta economy was mired in recession for most of last year, it makes the provincial government's February 5 announcement of a minimum wage freeze even more perplexing and unnecessary.

Perplexing because the government didn't even wait for the final Stats Can numbers before pulling the plug on a policy adopted three years earlier indexing the level of the provincial minimum wage to the average earnings of Albertans. Moreover, while the policy to link the minimum wage to average earnings was adopted after extensive consultation, the announcement to freeze it was made in a Friday news release.

The freeze was also unnecessary because the 1.2% increase in Average Weekly Earnings last year would have triggered an increase of only 10 cents in Alberta's minimum wage on April 1, 2010. Can the government credibly claim that an increase of 10 cents per hour in the wage of Alberta's most vulnerable workers is unaffordable to employers?

Linking the minimum wage to average weekly earnings is transparent and fair. It takes the politics out of setting the minimum wage, and allows employers to plan for predictable, smaller increases each year, rather than facing a larger increase when its politically expedient. It's also fair because during recessionary periods like today increases in the minimum wage are likely to be small and thereby affordable for employers.

And if not a link to the average earnings of Albertans, then what? The Minister of Employment and Immigration has promised to appoint an all-party committee to study the issue. Hopefully, the committee will get an earful from Albertans seeking a higher minimum wage as well as indexing.

* the 1.4% increase mentioned in a February 5, 2010 ESPC news release was based on earlier Statistics Canada information. The final number was 1.2%.