Minimum wage to hit $12.25
The Island’s minimum wage is going up by 70 cents on April 1.
The province announced the increase on Friday, meaning that the new hourly rate will rise to $12.25 in the spring. Barring raises from other provinces, the Island will maintain its claim to having the highest wage in Atlantic Canada.
Workforce and Advanced Learning Minister Sonny Gallant said the government is focused on helping Island families and supporting low-income workers by raising the minimum wage.
“This increase provides support to those most in need, puts more money into the pockets of Islanders and stimulates our provincial economy,” Gallant said in a media statement.
The announcement followed a recommendation of the Employment Standards Board, which reviews the minimum wage rate each year. The province said the decision was based on public input, as well as economic factors. The Island has seen continuous economic growth since 2008.
“Thanks to hard-working Islanders, the Prince Edward Island economy is stronger than ever before,” said Premier Wade MacLauchlan in a statement.
“This means more jobs for Islanders, more money in the pockets of Islanders and more Island goods being showcased around the world.”
But, NDP Leader Joe Byrne said the rise of the minimum wage will not be enough to pull Islanders out of poverty.
“I’m glad it’s going up. It’s not enough for working Islanders to live on,” Byrne said.
The P.E.I. NDP has called for the minimum wage to be raised to $15 an hour, which Byrne said would constitute a “liveable wage.”.
Byrne also said the shortage of affordable housing in Charlottetown is providing extra pressure for Island workers. He said the planned rise in the minimum wage will still not be enough for families to afford the average rent for an apartment, while paying for basic necessities like food, internet and transportation.
“How do you pay $900 a month for rent on a weekly salary of $450?” he said.
Others raised concern about the impact the planned wage increases would have on local businesses.
Penny Walsh-McGuire, CEO of the Greater Charlottetown Area Chamber of Commerce, said rising costs for local businesses often result in lower profit margins or higher prices being offloaded on consumers.
“If neither is an option, they may reduce employee hours and be forced to work more hours themselves,” Walsh-McGuire said.
“It’s a matter of businesses having to make decisions about how they will react to rising costs.”
Walsh-McGuire said she welcomed the six-month warning granted to businesses to adjust to the rising wages.
In a media statement, the Chamber of Commerce said the spring rise will mark an almost 53 per cent increase in P.E.I.’s minimum wage over the last 10 years. The cost of living has risen 16 per cent over the same period, according to the release.
P.E.I. has the lowest average weekly earnings in Canada, according to Statistics Canada.