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Minimum wage hike “nowhere near adequate,” say advocates

A number of advocacy groups call a hike to the NWT’s minimum wage a step in the right direction, but they agree it’s still well below what residents need to make ends meet.

Jawah Bercier, co-owner of Birchwood Cofee Ko, said it’s still early days to determine what impact the increase to the minimum wage will have on her business. However, she expects it could affect her shop’s costs. Kirsten Fenn/NNSL photo

Education, Culture and Employment Minister Alfred Moses announced Wednesday he will be bumping up the minimum wage from $12.50 an hour to $13.46 an hour, starting April 1.

The last increase to the minimum wage was in 2015.

“Obviously any increase is a good thing, but it’s nowhere near adequate,” said Suzette Montreuil, a member of Alternatives North. “It falls paltry compared to what the cost of living is still in Yellowknife.”

Alternatives North delivered a presentation in November on the “living wage” for a Yellowknife family of four – two working adults, one child in preschool and another school-aged child.

The group determined an adult working full-time would need to earn $22.24 an hour to pay for basic living costs such as rent, food and childcare.

The head of the Public Service Alliance Canada (PSAC) North is also on board with a bigger increase to the minimum wage in the NWT.

Regional executive vice-president Jack Bourassa said the raise announced Wednesday falls short of the $15 minimum wage PSAC North is pushing for in a campaign it launched this week.

“There are all kinds of positive effects as it relates to minimum wage going up,” said Bourassa. “It’s a whole lot better in general for the economy ... and better for those people who are making more money.”

When people are earning more, they can put their dollars toward things they want rather than just the things they need, said Bourassa, adding this brings money back into the economy.

He said the GNWT wouldn’t need to increase its minimum wage to $15 an hour overnight, but could do so over the next few years.

“It’s not about creating hardship. It’s about leveling the field and making those who are most vulnerable in society – allowing them to be in a place where they can better take care of themselves,” said Bourassa.

However, the increase will have some effect on local businesses.

While the fine details have yet to be figured out, Birchwood Coffee Ko co-owner Jawah Bercier predicts the small increase to the minimum wage this spring could impact her shop’s daily costs, especially as a fairly new business.

“It will definitely affect our costs on a daily basis and the costs of our foods,” she said. “One thing goes up and another thing has to level it out.”

However, Bercier added the coffee shop already pays some employees more than minimum wage, meaning the increase won’t affect every staff member.

Approximately 700 people in the Northwest Territories currently earn minimum wage, said Andy Bevan, assistant deputy minister at the Department of Education, Culture and Employment.

Despite a push in some Canadian jurisdictions to move to a $15-per-hour minimum wage, the GNWT says the NWT’s increase to $13.46 keeps the territory below a threshold that could cause detrimental economic impacts.

That decision was based on research from a minimum wage committee comprised of representatives from business, labour and community organizations, according to the department.

They presented the minister with three confidential options during the latest review, including “retaining the status quo, implementing a moderate increase or implementing a significant increase,” stated department spokesperson Cherish Winsor in an email.

The committee was created in 2013 and is required to review the minimum wage every two years.

The next review is expected to be in 2020, said Bevan.