Alberta minimum wage to increase by $1 this October

The minimum wage in Alberta is going up by $1 starting this October, with the goal of an increase to $15 an hour by 2018.

Minister of Jobs, Skills, Training and LabourLori Sigurdsonoutlined the changes on Monday morning.

"We believe minimum wage should at least allow people to meet their basic needs," saidSigurdson.

The changes also affect liquor servers, who will earn an additional $1.50 an hour starting in October. By 2016, they will earn the same wage as other minimum wage earners. Currently, employers in Alberta and several other provincesare allowed to pay liquor servers less than the generalminimum wage, on the assumption that they get tips.

During the election campaign, RachelNotley pledged to raisethe hourly rate from the current $10.20 to $15, which would take it from the lowest to the highest in Canada.

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Shortly after Notley's NDP won a majority in the provincial election, the governmentspent two days in June talking to industry representatives andlabour and public interestadvocacy organizations.

"I guess the best thing that you can say is that it wasn't two dollars," said Ken Kobly, presidentandCEO of the Alberta Chambers of Commerce, who attended Sigurdson's news conference.

Kobly's organizationreceived 1,600 responses to a survey about the proposed changes. While some said the increase wouldn't affect them at all, many others warned they would have to take action.

Businesses warn

"You probably will see a reduction in employment, particularly with students," Kobly said.

"The recurring theme that we're hearing from our members is that they'll raise prices wherever they possibly can."

Kobly said the changes will also have an effect on non-profit organizations. Parents who put their children in daycare may also pay higher costs, he added.

If poverty reductionis the goal, Kobly said, the government should consider changes to theAlberta family employment benefit so people who need help get it.

Sigurdsonsaidlayoffs haven'toccurred in U.S. jurisdictions that have gone to a $15 minimum wage. She downplayed concerns that Alberta businesses areexpressing.

"I really feel like that is just a bit of fear-mongering going on in the community," she said.

Karen Thiessen,owner of Edmonton restaurantDadeo,said she was relieved the wage will be phased in over three years.

Thiessen said she had become accustomed to an annual $1increase each September. When she first heard about the proposed $15 minimum, she wasalarmed.

"Fifteen dollars from $10.20 is kind of shocking to most people," she said, adding that incremental wage increases are a must.

"I don't know how some people survive working minimum wage. I think it's a good idea, as long as it's not $15 right away."

Single parent making minimum wage

The effect of low wages can be seen at the Edmonton Food Bank. Gloria, who only gave her first name because she is a food bank client, earns minimum wage as a cashier.

After paying the rent, there isn't much left over for her and her daughter.

Gloriauses the food bank to make ends meetbetween paycheques. She supports the government's effort to increase the minimum wage.

"I think it's a great idea, because a lot of people have to juggle two jobs just to try to make ends meet," she said.

It'snot clear how thegovernment will phase in theincreases.

Sigurdsondid not outlinewhen the next bump in minimum wage will come, but said consultations on the increases will continue.

She said the government is still committed to getting the minimum wage to$15 by 2018.