From The Sherwood Park-Strathcona County News (Dave Quest - MLA's Report, Friday, June 10, 2011)
The earnings of 20,000 Albertans will rise Sept. 1 when the province increases minimum wage and introduces a new differential system recognizing the tips earned by workers who serve liquor as a regular part of their job.
Alberta Employment and Immigration Minister Thomas Lukaszuk announced the province's new approach to minimum wages on June 1.
The goal of the government is to strike a balance between a reasonable wage for entry-level jobs, and ensuring employers remain competitive. It is our responsibility to provide certainty and stability for workers, as well as predictability and long-term viability for their employers.
The new general minimum wage will be $9.40 per hour. At the same time a new minimum wage of $9.05 per hour will be established for employees who serve liquor as a regular part of their job.
The current minimum wage is $8.80 per hour. The increases (6.8 per cent for general workers and 2.8 per cent for liquor servers) reflect the first change in minimum wage in Alberta since April 2009.
Having a differential rate for alcohol servers recognizes that employees serving alcohol generally receive a considerable portion of their earnings from tips.
It will also provide their employers with greater flexibility on how they pay the rest of their staffs, including cooks and dishwashers.
The differential wage for alcohol servers will remain at $9.05 per hour until the general minimum wage reaches $10.05 per hour. From then on, both wage rates will increase and a $1 differential between the two wages will be maintained.
Also beginning Sept. 1, government will use a new formula as the basis for decisions about future increases to Alberta's minimum wage.
The new formula will be a simple average of changes to Alberta's average weekly earnings and changes to the Consumer Price Index in Alberta.
The previous formula for determining changes was based on Alberta's average weekly earnings only.
For example, if the average weekly earnings for Albertans has risen two per cent in the last year, and the Consumer Price Index in Alberta has risen one per cent, the provincial minimum wage will be increased by 1.5 per cent.
Changes to minimum wage will occur Sept. 1 of each year if warranted. The provincial government will retain the ability to deviate from the new formula should the need arise.
The changes follow a review of the minimum wage by the Standing Committee on the Economy, an all-party committee of the Legislature.
The group heard from over 200 Albertans and received 14 oral presentations from organizations and individuals.
I'm confident our new minimum wage strategy serves both the short and long-term needs of minimum wage earners and their employers.
Minimum wage facts
• The percentage of Alberta employees earning minimum wage in 2010 was 1.4 per cent, the lowest in the country.
• Of those earning minimum wage in Alberta, the largest group (36.4 per cent) is between 15 and 24 years of age.
• Ontario has had a differential rate for liquor servers for many years. British Columbia has recently announced a differential rate for later this year. Quebec has a differential rate for all workers earning tips, not just liquor servers.
• Ontario has the highest minimum wage at $10.25 per hour. B.C. has the lowest at $8.75 per hour (as of June 1).
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