Alberta's minimum wage is "falling further and faster" behind inflation than anywhere else in Canada, says the president of Alberta Federation of Labour.
Oct. 1 is the sixth anniversary of the UCP government's minimum wage freeze.
AFL president Gil McGowan said if Alberta's minimum wage had kept up with inflation over the past six years it would be worth about $19 an hour instead of stuck at $15.
"Working Albertans are not keeping up. Statistics Canada has shown very clearly that wage growth is slowest in Alberta among all Canadian provinces," McGowan said.
Alberta is tied with Saskatchewan for the lowest minimum wage in Canada.
On Oct. 1, Ontario's minimum wage increases by 65 cents to $17.20 an hour to become the second highest in Canada.
Ontario’s minimum wage increases annually based on the Ontario Consumer Price Index, and raised the wage from $15 to $15.50 two years ago.
British Columbia has Canada's highest minimum wage at $17.40 an hour.
"If even Conservative Ontario is willing to increase its minimum wage and index for inflation, it begs the question, why can't we do it here in Alberta?" asked McGowan.
He said minimum wage earners in Alberta have lost almost 30 per cent of their purchasing power since the UCP came to power.
"That's bad news for the workers whose wages haven't been able to keep up with inflation. That's also bad news for the broader economy. If workers don't have money in their pocket, that means that there's less money being spent in the economy and that affects everyone."
The AFL is calling on the province to increase the minimum wage to make up for years of inflation, automatically tie the wage to the rate of inflation, and provide a wage that is closer to the living wage Albertans need.
He said the province has argued that a low minimum wage doesn't matter because Alberta has more jobs and a lower cost of living. But that's no longer true.
"The cost of living in Calgary is almost as high as Toronto, and communities like Edmonton, Fort McMurray and Red Deer are not far behind. We have a higher unemployment rate than the Canadian average, so the boom is over, and our costs, especially housing costs, are no longer lower than the Canadian average either," McGowan said.
In a statement, Jobs, Economy and Trade Minister Matt Jones said Albertans keep more of what they earn, as the province has the lowest provincial income tax rates, the highest personal income tax exemption levels and no provincial sales tax.
“Alberta’s government understands that significant changes to the minimum wage could negatively impact small businesses, youth and Albertans seeking their first job or part-time employment. Further, these changes also affect operational costs, which ultimately flow through to all Albertans," Jones said.
"Minimum wage is an important issue for our government. We will continue to monitor the matter closely and evaluate the appropriateness of the current calibration to best serve Albertans."
