The minimum wage in Saskatchewan will increase to $11.32 on Oct. 1. (Ian Gustafson/paNOW Staff)

By Ian Gustafson

Income Matters

Saskatchewan to see minimum wage increase on Oct. 1

Sep 25, 2019 | 4:27 PM

Saskatchewan’s minimum wage will be increased to $11.32 as of Oct. 1.

Nicole Rancourt, the New Democratic Party (NDP) MLA for Prince Albert Northcote told paNOW it’s unfortunate Saskatchewan will still have the lowest minimum wage in the country.

“The government formula that they are using is obviously broken and we have an economy that is struggling, and we have working families who are working full time and still living in poverty,” Rancourt said. “So, I think the government needs to review their formula because we shouldn’t have working families who are utilizing the food bank.”

Rancourt said the NDP supports a $15 minimum wage and said in their first term in government they would make sure it would happen. She also said the annual minimum wage increase hasn’t been reflective of living costs.

“The current minimum wage is definitely not meeting the needs of families. We know that the cost of living has been increasing and families are struggling,” Rancourt explained. “It would be nice to see Saskatchewan leading with regards to supporting our working families with minimum wage.”

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Thus far according to the Retail Council of Canada, Alberta is the only province with a $15 minimum wage.

“That’s what individuals in the front-line services are saying is that in order to go above the poverty line $15 per hour wage would help,” she said.

Steve McLellan, CEO of the Saskatchewan Chamber of Commerce said he acknowledges it’s not a substantial increase.

“Well it’s not a surprise we have an indexed formula that allows the businesses to know in advance essentially what the wage is going to be that it’s not a swing of any great significance upwards and so it’s predictability and that’s what business wants,” McLellan said.

He thinks the increase will help a lot of people who make the minimum wage.

“Certainly, it will make a difference to those people who are making the minimum wage,” McLellan said. “It’s used most actively in a student environment or a part-time learning skills environment now days but indeed any pay increase will help someone no question.”

“The predictability of the system we now have in Saskatchewan has been a good thing. It allows business to plan more effectively their expenditures and because of the fact we don’t have huge upward swings anymore, it means there are less people making minimum wage. They’re not getting laid off and that’s positive for them,” McLellan added.

“The important thing is not what the minimum wage is, it’s how productive the employees are and the more productive they are. The greater skills they have, the better they will be paid because they’re simply generating more income for the companies,” McLellan said.

According to a media release, the change was announced in June.

The minimum wage is calculated every year using an indexation formula, which according to a release from the province, gives equal weight to changes to the Consumer Price Index and Average Hourly Wage for Saskatchewan.

Last October, the wage was increased to $11.06. Effective on Oct. 1, 2019 employees will see a 26-cent increase to minimum wage.

“Our government continues to introduce minimum wages that are sustainable and predictable,” Labour Relations and Workplace Safety Minister Don Morgan said in the release.

“Since 2007 our government has increased the minimum wage by more than 40 per cent. We have also taken approximately 112,000 Saskatchewan residents off the provincial income tax roll, to help families keep more of their paycheques in their pockets.”

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ian.gustafson@jpbg.ca

On Twitter: @iangustafson12