Alberta to raise minimum wage by $1 in October

Alberta's minimum wage will rise by $1 to $12.20 per hour on Oct. 1, the first of three staged increases to reach a $15 minimum wage by 2018, the provinceannounced Thursday.

• Alberta government won't back down from minimum wage hike
• Alberta restaurant industry pushes to postpone minimum wage hike
• Alberta's minimum wage earners rejoice over raise, but worry about long-term impacts

Labour Minister Christina Gray saidthe government will also eliminate the lower pay rate forliquor servers this fall. The weekly minimum amount for a 40-hour work week will be $486. People who are paid by the month will earn a minimum of $2,316.

The minimum wagewill go up $1.40 an hour to $13.60 an hour on Oct. 1, 2017.The government will reach the $15 minimum wage by Oct. 1, 2018.

The government raised the minimum wage by $1 last fall.

"We believe that the minimum wage for full-time work should at least allow people to meet their basic needs," Gray said at a news conference in Edmonton.

"That means no one working a full-time job should have to stop at a food bank and choose between rent and buying groceries."

Opposition from business

Gray said the majority of people who earn less than $15 an hour are adults over the age of 20. Two-thirds of them are women.

Gray said the plan givescertainty tobusiness owners over the next three years.

"These steps are being phased in responsibly, giving employers time to adjust, and lower income Albertans the help they need to provide for themselves and their families," she said.

The minimum wage increase has been opposed by industry groups, including Restaurants Canada, and the Canadian Federation of Independent Business.

Restaurants Canada launched an online petition earlier this monthaskingthe government to postpone increases until the economy improves.

The group also wanted the government to keep the lower liquor server wage and introduce a lower minimumwage for youth.

Gray deflected reporters' questions about the potential forjob losses in the restaurant industry due to higher costs.

"We believe that making sure that everyAlbertanhas a fair wage is most important."

Restaurants Canada, which Gray calleda "well-funded lobby group," was heard in the recent review, in addition to low-wage earners, she said.

She said the low small business tax and the absence ofsales and payroll taxesmake Alberta one of the best places to start a business in Canada.

Job losses a concern

However, opposition parties restated their objections to the minimum wage hike.

Wildrose Leader Brian Jean said the increase comes at the worst time for the Alberta economy when thousands are losing their jobs. According to Statistics Canada, the net Alberta job loss in May was 24,000 jobs.

"Combined with a series of other tax increases, this aggressive timeline comes at the wrong time as our economy continues to suffer," Jean said in a news release.

Interim Progressive Conservative Leader Ric McIvercalled on the NDP to "hit the brakes" on the increases.

"During these tough economic times, we have seen businesses forced to lay off hard-working Albertans or shut down completely,"McIver said in a news release. "On top of the new carbon tax, a minimum wage increase will only result in more job losses."