The new minimum wage rates represent a 6.8 per cent increase for general workers and a 2.8 per cent increase for liquor servers, the first changes to minimum wage in Alberta since April 2009. The rate changes will impact about 20,000 people, which is approximately less than 1 per cent of the population, and with the increase, minimum wage in Alberta is still the lowest in the country.

The increases are part of what is happening right across other jurisdictions in Canada including recent changes in British Columbia (from $8, eventually to $10.25 in May 2012), Saskatchewan ($9.50 on September 1), Manitoba ($10 on October 1), New Brunswick ($10 on September 1) and PEI ($9.60 on October 1). Earlier in 2011, Yukon raised its minimum wage ($9 on April 1), Northwest Territories ($10 on April 1), and Quebec ($9.65 on May 1).

Also beginning September 1, government will use a new formula as the basis for decisions about future increases to Alberta’s minimum wage. The new formula will be a simple average of changes to Alberta’s annual average weekly earnings and changes to the Consumer Price Index in Alberta. The previous formula for determining changes was based on Alberta’s average weekly earnings only. Changes would occur September 1 of each year and would be announced with three months’ notice.

For your information, back in November 2010, RCC had urged the Government of Alberta to hold off on increasing minimum wage in the aftermath of the global recession and the fragile economic recovery as retailers did what they could to control their costs. We had also supported a move to publish the formula used to calculate the minimum wage so that it is transparent to Albertans, and the businesses that employ them.

In February 2010, Employment Minister Thomas Lukaszuk froze the minimum wage at $8.80 an hour, a move he said was necessary to keep people employed, keep small business competitive and help address unemployment during the global recession.

Furthermore, the report by the Standing Committee on the Economy recommended a formula be enshrined in legislation, so the process of calculating minimum wage is transparent, and said the province should work with the federal government to exempt minimum-wage workers from paying income tax.

Full Release and Backgrounder

If you have any questions, please contact:
Mark Startup,
CEO & President
Shelfspace, The Association for Retail Entrepreneurs
Ph: 604-730-5252
Email: mark@shelfspace.ca