Saturday, April 03, 2010

MLA denies need for wage increase Grits should do the math

Richard Rolke - Vernon Morning Star Published: April 03, 2010 12:00 PM

Vernon-Monashee MLA Eric Foster believes there is considerable misinformation over the minimum wage. The B.C. Federation of Labour is demanding that the provincial government raise the minimum wage from $8 to $10 an hour, saying that B.C. has fallen behind every other jurisdiction across the country. “We have one of the highest average wages in the country,” said Foster, who represents the Liberals in Victoria. “Many people who get minimum wage work in the service sector and they get tips. They don’t earn minimum wage.” He added that many employers also pay more than they are required to under law. “To say there are hundreds of thousands of people on minimum wage is misleading.”

On Wednesday, Ontario increased its minimum wage to $10.25 an hour while it went to $9.20 in Nova Scotia Thursday. New Brunswick’s minimum wage is going to $8.50 and it will climb to $9 in September. “The Campbell government has abandoned its responsibility to establish a minimum wage that is fair to the hundreds of thousands of low-wage workers in B.C.,” said Jim Sinclair, federation president, in a release. “It’s time for the MLAs in the Liberal caucus to accept their responsibility and speak on behalf of their constituents and demand that the minimum wage be increased to $10.” B.C.’s minimum wage has not risen since 2001, but Foster insists no action should be taken now because of the ongoing economic challenges. “There’s a huge cost to business,” he said of government-mandated increases. “Some small retailers that hire young people can’t afford to pay more. Our business people are telling us this is the worst time to increase minimum wage.” But Sinclair disagrees with that stance. “Provincial governments across the country are facing the same economic realities and they have decided to increase their minimum wages,” he said. “Other provinces have increased minimum wages as part of an anti-poverty strategy.”

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What’s wrong with the following scenario? It’s 2001 and you get your first job and you make minimum wage and it’s eight bucks an hour. Actually there’s nothing wrong with that, first jobs should pay minimum wage and that seems like a decent amount of money for the market nine years ago. Fast forward to 2010 and it’s your first job and again, appropriately, you make minimum wage, except it’s still eight bucks an hour. Ah, there’s the problem. No increase to the minimum wage in this province in nearly a decade? Tough to justify no matter what spin you put on it. Certainly many employers, perhaps most, pay more than minimum wage for entry-level jobs or service-industry employment that is compensated by gratuities. However, the minimum wage still acts as a guideline for business and acts as a ground floor for proper compensation. Yes, there is a recession going on in this country and it’s difficult for all employers, let alone the service sector, to possibly endure higher costs of doing business. However, the recession is also in Ontario, which recently hiked their minimum wage to $10.25 an hour, and Nova Scotia ($9.20 an hour) and New Brunswick (soon to be $9 an hour). If other provincial governments have been able to increase the minimum wage in their respective jurisdictions without economic chaos, it seems only reasonable that Victoria can follow suit without serious repercussions.Indeed, it just seems like the right thing to do for all concerned.

1 comment:

Anonymous said...

I'm thinking we should reform all levels of politics. Pay them all minimum wage only for the hours actually worked, not attending social functions, ribbon-cuttings, etc.
Give them an unlimited expense account, but publish quarterly detailed line by line summaries of expense items claimed.
Enough of this nonsense about attracting the best and the brightest to politics by high wages. All it has led to is a bunch of power-hungry money-grubbers. You are never going to separate the power-hungry part out, so recognize it for what it is and pay them at the lowest wage for the plebs.
Then you know what you are getting when you vote. They are either in it for community need (snicker) or to control things in their own interest.