Alberta may have the highest minimum wage in the nation when it will increase to $13.60 an hour on Sunday and people in favour and opposed to the transfer are voicing their opinions.
Alberta Federation of Labour president Gil McGowan is a proponent of the rise. He stated there are two main upsides to rising the minimum wage: it reduces worker turnover, which will increase productiveness and income, and it outcomes in minimum wage staff spending more cash on the native economic system.
“They don’t hoard that money, they don’t save it, they don’t spend it on lavish trips abroad like wealthier people might, instead they spend it and they spend it on the local economy,” McGowan stated.
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Local companies have argued a minimum wage enhance will drive them to minimize employees or minimize hours, and an Alberta economist revealed a report with the C.D. Howe Institute prompt elevating minimum wage to $15 an hour by 2018 may lead to the loss of roughly 25,000 jobs.
“That’s a lot of jobs,” Joseph Marchand, economist and University of Alberta affiliate professor of economics, stated. “If you look at individuals geographically between the 15 to 24 age group, they’ve already lost 27,000 jobs over the last two years since the policy was implemented.”
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University of Calgary affiliate professor of economics Trevor Tombe disputed the numbers, arguing the quantity of jobs misplaced can be about 15,000.
McGowan stated these are false, dire threats.
“We have literally 100 years of experience with these kind of predictions and you know what? It’s never happened. The sky has never fallen, massive job losses never occurred as a result in the increase in the minimum wage, whether those increases are small or large.”
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McGowan stated a rise in minimum wage in Alberta may have the influence of injecting almost $1 billion into the provincial economic system, which can develop the economic system and create jobs.
“It’s useful to compare performance and our labour markets to Saskatchewan which has a very similar economy,” McGowan stated.
“If the minimum wage was a job killer, what you should see is job loss in low-wage service sector jobs here in Alberta and nothing similar in Saskatchewan, but that’s not happening. Our labour markets are on a very similar trajectory.”
Those who oppose and assist the minimum wage enhance are anticipated to proceed to weigh in on the difficulty.
During a media availability on Friday morning, members of the United Conservastive Party, together with interim chief Nathan Cooper, are anticipated to urge the federal government to not observe by way of with the rise.
On Friday afternoon, Alberta Labour Minister Christina Gray will talk about Sunday’s enhance.
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