Manitoba’s minimum wage still inadequate: CCPA-MB

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This article was published 13/12/2024 (278 days ago), so information in it may no longer be current.

A report released by a Winnipeg-based think tank says the province’s minimum wage is still too low.

However, provincial and federal initiatives targeting low-income earners are playing an integral role in reducing poverty and improving quality of life for Canadians, the report released by the Canadian Centre for Policy Alternatives – Manitoba (CCPA-MB) found.

Speaking to the Sun about the positive impact of these initiatives, Niall Harney, a senior researcher at CCPA-MB, said low-income individuals and families should take advantage of these programs.

“What we’re seeing now in terms of our living wage calculations is that there is a big impact on low-wage earners from federal benefits, particularly the Canada Child Benefit, or the Canada Worker Benefit. If you’re a low-income worker with children, you need to make sure that you’re taking full advantage of the Canada Child Benefit, as well as provincial benefits like Rent Assist or the childcare subsidy. If you’re a single person, and you don’t have kids, accessing programs like the Canada Worker Benefit which has been increased in the last two years, can make a positive difference in people’s lives.”

CCPA-MB’s 2024 living wages report pointed out that the living wage in the City of Brandon increased by 59 cents to $16.28 per hour, compared with last year. Similarly, the city of Thompson’s living wage for 2024 increased by 42 cents, compared with 2023, to reach an hourly pay-rate of $17.90. However, the living wage in Winnipeg fell by 46 cents to $18.75 per hour.

CCPA-MB’s research also concluded that the current minimum wage rate of $15.80 per hour will keep workers in poverty, and the centre urged the province to raise it to $18.75 in order to make it a livable pay rate. The centre also believes that Manitoba’s minimum wage should be adjusted from year to year, depending on the living wages report that is released annually.

After factoring in the high inflation rates seen last year, federal benefits, such as the Canada Child Benefit and Canada Worker Benefit were adjusted and helped add between $1,548 and $3,408 to annual family incomes, the report added.

However, even as these programs have helped workers cope with inflationary cost pressures, they are not enough to offset the continuing cost of living pressures experienced by most low-income families. Add to that, the impacts of the COVID-19 pandemic in particular, daily cost of living is still high for many communities in Manitoba, especially compared with the pre-pandemic years, the report added.

Harney also spoke about some of the ways in which the government can help reduce inflation. “Governments can help its people overcome inflation by raising benefits, which we have seen already, but also (by) providing universal public goods like the 10 dollar-per-day child-care benefit, which has had a huge impact on reducing costs for households with children.” But Harney also pointed to some of the negative approaches used by the Bank of Canada to try and curb inflation.

“We have seen that the Bank of Canada’s approach during the pandemic was to raise interest rates, and that has had a really devastating impact on the economy as a whole. It has increased unemployment, and it’s placed a lot more pressure on households with debt or with mortgages, and it’s really slowed down spending in the economy,” he said.

» dstein@brandonsun.com

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