The minimum wage is one of the basic labour standards. It identifies the lowest wage rate that an employer can pay their workers.

Today, one of its main functions is to protect workers in non-unionized workplaces, but it also influences the level of compensation for all workers.

Minimum wage laws were first introduced in 1918 in the provinces of British Columbia and Manitoba. While these laws have had many changes over the years, every province and territory now has a minimum wage law. The rates vary between each jurisdiction.

On April 1, the Government of the Northwest Territories raised the minimum wage for the first time in seven years. On this date, the old rate of $8.25 per hour was replaced by $9 per hour, representing a mere nine per cent increase (or less than 1.3 per cent per year with no compounding). In this same time frame, our members of the legislative assembly have enjoyed a 21 per cent increase in their salaries.

Assuming that $8.25 an hour was an adequate wage in 2003 (which I dare say it wasn't), the cost of living index would have incrementally increased the rate to $9.63 by now. Sadly, by October of this year, eight of the other 12 provinces and territories will have higher minimum wage rates than the NWT, with Ontario at $10.25 per hour. While I am certainly not implying that the setting of wage rates should be a competition, I do believe that the wage rates need to be reflective of the cost of living in the province or territory where the worker resides.

When you consider that based on a 40-hour work week, the annual gross income of a minimum wage earner is only $18,720, this falls far short of the Low Income Cut Off identified by Citizenship and Immigration Canada of $22,171.

Given that it took more than four years to even start a consultation process, and then another two years to actually establish an increase, workers cannot afford to wait again. I truly hope that Minister Lafferty's following statement becomes a reality:

Moving forward, the department is considering ways to implement future increases that will see regular and reasonable increases linked to other economic factors such as inflation and the cost of living.

Inflation and rising costs of living do not remain stagnant for years on end waiting for governments to raise minimum wages. We need laws in place that will protect workers. Unfortunately, workers in the NWT will have to wait until April 2011 to see $10 per hour; and then will have to wait and see how the government considers future increases. The Northern Territories Federation of Labour promises to make this an important election issue in 2011. Workers are done waiting!

• Mary Lou Cherwaty is president of the Northern Territories Federation of Labour