Business and anti-poverty advocates are preparing to share feedback on the future of New Brunswick’s minimum hourly wage, with public consultations underway for the first time in a decade. The consultations, announced on Tuesday, will continue until Oct. 9. New Brunswick currently has the lowest minimum wage in Atlantic Canada at $15.90 per hour. Newfoundland and Labrador’s minimum wage is $16.35 per hour, Nova Scotia’s rate is $16.75 per hour, and P.E.I.’s rate is $17 per hour. New Brunswick’s minimum wage is updated every April and is tied to the consumer price index. The province says its review will look at the costs of basic necessities in New Brunswick, along with a timeline for any changes being made to the minimum wage. The province says it will also consider if minimum wage rates in the rest of the region should factor into New Brunswick’s decision-making process. The Canadian Federation of Independent Business says it will try to convey a message to the provincial government that raising the minimum wage has cascading effects throughout the economy. “For example, if you raise the minimum wage, what happens almost immediately after is everybody not making minimum wage at a company will be asking for an increase in their in their income, in their salaries,” says Frédéric Gionet, the federation’s director of legislative affairs in Atlantic Canada. “So, over time, it just increases the overall labor costs because it just kind of moves the bar.” Gionet says small business owners have no choice but to pass those costs over to consumers, adding that 90 per cent of the federation’s membership pays above minimum wage for most positions. “What we will be submitting to the government is the fact that minimum wages should be set as a percentage of the prevalent wages or the median wages that are actually held by most New Brunswickers,” says Gionet. “So, therefore, if the economy is going well, the wages are going up, the minimum wage will go up in proportion.” The Saint John-based Human Development Council’s most recent study on living wages found full-time working parents with two kids in New Brunswick need to make at least $24.77 an hour each to make ends meet. Randy Hatfield, executive director of the council, says the organization will push for a path to have the minimum wage meet the living wage. “I think a predictable, staged increase to move towards the living wage is a proper response given current circumstances in the province,” says Hatfield. “There are a number of inputs you could take into consideration. I think it’s safe to say the current rate is inadequate.” Hatfield says many who receive a minimum hourly wage of $15.90 are working multiple jobs to try and get by. “If you crunch the numbers and you look at full-time work at that rate, I think that’s inadequate for safe and affordable accommodation, for nutritious food, for energy costs,” says Hatfield. “We know that low-income workers, those relying on the minimum wage, are falling further behind and having more difficulty in trying to reach those basic needs.” The government says in addition to consulting with employers, workers and organizations, it will also accept feedback online and through a toll-free number. “And after that, we’ll take all of those things and try to measure and balance all of the different positions to come up with a potentially new minimum wage,” says Alyson Townsend, the province’s labour minister. “Or maybe not. But that’s a possibility.” With files from CTV News Atlantic’s Sean Mott and Avery MacRae For more New Brunswick news, visit our dedicated provincial page.
