'Living wage should be the minimum wage': Report reveals Manitobans need more to make ends meet

Manitobans need more money to hit cost of living To keep up with the high cost of living, Manitobans will need to make more money, according to new data. CTV’s Alexandra Holyk reports.

To keep up with the high costs of living, Manitobans will need to make more money, according to new data from the Canadian Centre for Policy Alternatives.

It says the current minimum wage must be increased by 25 per cent to match the living wage, which it says stands at nearly $20 per hour.

"We're seeing growing levels of working poverty in our community," said Niall Harney, a senior researcher at the centre.

In a new report, the Canadian Centre for Policy Alternatives (CCPA) in Manitoba reveals minimum wage workers need to make more money per hour to keep up with the high cost of living.

"We look at how much income has to be earned after we take into account taxes, transfers and payroll reductions that the family has to pay, as well as other benefit programs,” said Jesse Hajer, an assistant professor at the University of Manitoba’s economic and labour studies department.

In Winnipeg, the living wage is set at $19.21 per hour.

It is slightly less in Brandon, which is $15.69 per hour.

And in Thompson, workers need to make $17.48 per hour to make ends meet.

"Living wage should be the minimum wage, but that is not the case in Manitoba," Hajer said.

At this time, the minimum wage in Manitoba is $15.30 per hour. While it just went up in October, it’s still nearly $4 less than what the think tank says it should be.

Researchers say the demand is driven by the cost of food which saw an increase of 10 per cent year-over-year, and housing which was up 5 per cent from 2022.

But the CCPA said childcare costs decreased this year, falling 35 per cent from $633 to $413 per month.

"Childcare costs offsetting that increase, it's important to remember there is a constrained supply of childcare in Manitoba,” Hajer said.

The report assumes families can get a childcare space through the federal government's $10-a-day childcare program.

However, the Manitoba Childcare Association tells CTV News some centres report having more than 1,000 families on the waitlist.

"For this living wage to be meaningful, it requires someone to have access to that childcare program,” Hajer said.

The CCPA is calling on the province to shift funding towards programs that benefit families, and increase the minimum wage to match a living wage.

But local business owners say a wage increase won't decrease the cost of living.

"Minimum wage goes up, everything goes up with it,” said Munther Zeid, the owner of Food Fare.

Zeid said it could also impact operations.

"People might have to be told to do more in their shift to compensate for less people. Cost of goods are definitely going to go up."

In a statement to CTV News, Manitoba's Labour and Immigration Minister Malaya Marcelino said the province supports efforts to help Manitobans get paid a fair wage.

It plans to help increase affordability by cutting the gas tax starting in the new year.