Alberta already taking broad approach to poverty issues, labour minister says

By Collin Gallant on October 4, 2018.

cgallant@medicinehatnews.com @CollinGallant

Alberta’s labour minister says her government is ahead of the game when it comes to addressing a wide range of poverty causes, which the local chamber and an anti-poverty group say are more effective than minimum wage increases.

On Monday, that wage rose to $15 per hour, up $1.40 from the previous figure, and $4.80 more than when the New Democrats took power in the spring of 2015.

That’s drawn not only criticism from business groups about not only the effect on the business climate, but also claims that higher wages for the lowest paid workers aren’t the most effective way to alleviate poverty.

Local anti-poverty group, Thrive, has downplayed the minimum wage, and instead continually points to the group’s goals in a variety of areas, which include housing and transportation, as well as income security.

Labour Minister Christina Grey tells the News that higher minimum wage is part of a raft of policies brought in by her government that shows they have “the backs of everyday Albertans.

“We know raising the minimum wage isn’t the only thing we can do to make life better,” Grey wrote in a statement to the News.

“That’s why we introduced the Alberta Child Benefit, brought in $25-a-day childcare, capped electricity rates, doubled affordable housing, reduced school fees and froze tuition, among many other initiatives.”

As well, the province has introduced a school lunch program, and in the area of low-income, subsidized housing changed qualifications and brought in graduated rents — moves that some community agencies have applauded.

The issue garnered debate in Medicine Hat last month when Thrive contributed to a local Chamber of Commerce policy paper that called for minimum wage to be halted at $13.60, then indexed to inflation.

The paper stated “solely focusing on minimum wage as … a one size fits all solution … has the potential to result in unintended consequences to both employers and employees.”

Thrive officials softened its stance last week, telling the News it supports a broad approach.

“Focusing on minimum wage increases alone represent a short-sighted solution that will not have a long lasting impact on poverty,” said Karen Danielson, the executive director of Thrive Southeastern Alberta. “We have never been opposed to minimum wage increases, but instead advocate for a more robust response to poverty.”

Think tanks have also weighed in on the subject.

The left-leaning group Public Interest Alberta has said the increase will help business as more money will enter local economies, and one quarter of the Medicine Hat workforce earns less than $15 per hour.

A report from the right-leaning Fraser Institute claims Alberta’s minimum wage is out of step with other provinces (it is the highest in the nation), and can lead to job losses as employers grapple with higher costs.

It instead points to income supports as more effective at targeting those in financial straights, specifically Ottawa’s Canada Worker’s Benefit and Alberta’s Child Family Employment Tax Credit, which was increased in 2015.

“While raising minimum wage reduces job opportunities, a work-based subsidy encourages employment,” the institute’s report claims.

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