CCPA says too many workers 'trapped in low wage gap' but government cites minimum wage increase June 1
One-third of workers in British Columbia — or 740,000 people — are not earning enough to meet the basic needs of their families, according to a report by the Canadian Centre for Policy Alternatives.
In analyzing recent data from Statistics Canada, they also say that over 400,000 individuals in the province are earning less than $20 per hour.
B.C. is raising its minimum wage on June 1 to $17.40 per hour.
But even with the increase, “far too many workers will remain trapped in the low wage gap, earning less than it costs to live in our province,” writes author Iglika Ivanova, senior economist and public interest researcher at the CCPA-BC.
The living wage is the hourly rate required for full-time workers to support a family, based on the actual costs of living.
While over 400 BC employers are living wage employers, the BC government needs to take steps to both lift wages and lower the cost pressures people face so that all workers can thrive, says the CCPA report, in partnership with Living Wages for Families B.C. and Understanding Precarity in BC.
“Boosting the earnings of low wage workers will stimulate the local economy because these workers are likely to spend almost all of their extra income in their communities, supporting local businesses.”
Minimum wage 'highest of all provinces,' says ministry
B.C.'s Ministry of Labour said it is reviewing the report, according to Yahoo News, and acknowledged people "across the province are finding it difficult to make ends meet" while global inflation is adding pressure.
"This government has made consistent increases to the minimum wage since 2017 to prevent the lowest paid workers from falling behind," it said in an emailed statement.
"The minimum wage had been frozen for most of a decade and was one of the lowest in Canada as recently as 2016. With this increase, it will be the highest of all provinces."
Future increases will continue to be tied to inflation, said the government in the article, and it has taken action on affordability through reduced costs for child care, electricity, and car insurance, along with a cap on rental increases and measures to address food insecurity.
Living wage policies ‘miss the mark’
Back in May, the Canadian Federation of Independent Business (CFIB) said that mandating a $20-an-hour living wage would put more than 75,000 small businesses in B.C. at risk of becoming unprofitable.
"Minimum wage and living wage policies often miss the mark when it comes to truly supporting the most vulnerable workers. Governments are setting these wages with no anchor in economic reality, relying on subjective and unpredictable criteria,” said Beatrix Abdul Azeez, CFIB policy analyst. “Governments should shift away from relying on these blunt tools and instead adopt a new approach to ensure workers can cope with the rising cost of living, while also guaranteeing that small businesses aren't unfairly burdened.”
