Minimum wage increase would be insufficient, workers say

The minimum wage in Saskatchewan rose to $15 per hour on Tuesday, an increase of $1 from its previous level. Many workers believe, however, that this increase is insufficient to cope with the rising cost of living.

This increase follows a promise made by the Saskatchewan Party during the 2022 election campaign. The government then increased the minimum wage from $11.81 to $13 and promised an increase of an additional $1 each year until 2024.

However, despite this increase, Saskatchewan maintains the lowest minimum wage in the country.

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Christian Nwoye, a newcomer to Saskatchewan, is one of the workers who believes this increase is insufficient. The latter moved to the province two weeks ago and works for minimum wage.

The new arrival says he is already struggling to make ends meet.

You need to find a side job or something else to do on the weekends or in your free time […] to make ends meet or to eatexplique Christian Nwoye.

Mr. Nwoye also highlights the repercussions of this situation on the mental and physical health of many workers who experience similar circumstances.

It affects us mentally and physically because our bodies are so exhausted from working.

Pushpinder Kaur, an international student at the University of Regina, faces similar challenges. She also earns a minimum wage and is forced to rely on financial support from her parents in India to meet her needs.

Sometimes I feel depressed because there are exams and I also have to work. Sometimes I forget to eat.

A minimum wage that does not keep up with inflation

Peter Gilmer, a spokesperson for the anti-poverty organization Regina Anti-Poverty Ministrybelieves that this increase does not take into account the increase in the cost of living in the province. According to him, the new salary is much lower to what is necessary.

Mr. Gilmer is advocating for the minimum wage in Saskatchewan to be readjusted to a living wage level. He explains that inflation has particularly hit areas where low-income households typically spend most of their resources.

We’ve been competing for a long time with the lowest minimum wage in the country, and I think that’s not a good indicator for the province. In fact, it hurt people a lothe said.

Peter Gilmer cites a study published in September 2023 by the Canadian Center for Policy Alternatives (CCPA) which estimates that the minimum wage should be $17.80 in Regina and $18.95 in Saskatoon.

The most recent Consumer Price Index data from Statistics Canada reveals that in August, Saskatchewan saw rents increase by 6.8 per cent compared to the previous year. At the same time, the price of food purchased in stores increased by 3.2% in the province during the same period.

According to Mr. Gilmer, human rights advocates have been advocating for a $15 minimum wage for more than a decade.

Even if we are here, it is far too late. These days, the real cost of a decent wage is significantly higher, and that’s what we should aim forhe emphasizes.

Small businesses under pressure

The increase in the minimum wage is also a source of concern for Saskatchewan businesses.

The director of provincial affairs for the Prairies and Northern Canada at the Canadian Federation of Independent Business (CFIB), Brianna Solberg, points out that every salary increase imposes challenges on small businesses.

According to her, some companies are forced to increase salaries, even if they already pay their employees above the legal minimum.

The FCEI which represents 4,000 business owners in Saskatchewan conducted a survey in September revealing that 57% of its members believe that salary costs are their main expense.

Solberg is calling on the provincial government to take steps to improve affordability for residents, saying the burden of this issue should not fall solely on businesses.

I think the government needs to do a better job of mitigating inflationary pressures and helping make things more affordablesaid Ms. Solberg.

She adds that this increase in the minimum wage adds to existing inflationary pressures.

This is another straw that could be the final straw for many small businessesshe warns.

The province declined to comment due to restrictions imposed by the Elections Act after a provincial election was called Tuesday.

With information from Shlok Talati