Manitoba Coalition Fights for Just Minimum Wage

by Tara Rudy

The Just Income Coalition formed in the fall of 2002 when a group of representatives from labour, human services, faith, women’s, and Aboriginal organizations came together out of a shared concern over the inadequate minimum wage and its impact on low income Manitobans. They recognized that low wages are a major source of poverty in our province and organized around the idea that a strong minimum wage can be an effective tool for promoting economic justice.

In 1987, Manitoba’s minimum wage was the highest in the country. Since then, the minimum wage has increased to its current level of $6.75, but the increases have not kept pace with the cost of living. If it had risen with inflation, it would be more than $9.50 today. While Manitoba’s minimum wage is comparable to other provinces, it still does not allow a Manitoban to live above the poverty line. In fact, a single person would have to work 56 hours per week at minimum wage just to reach the poverty line and a single parent with two children would have to work 85.31 hours per week. As a result, many families with at least one adult in full time employment often find themselves living in poverty. Having a job is simply no longer a guarantee that one can escape being poor.

There are many misconceptions about minimum wage workers in Manitoba. The assumption that they are teenagers living at home, single people with no family responsibilities, or people with little education and few skills is inaccurate. In Manitoba, 46.2% of minimum wage earners are adults over twenty, the majority of whom are women. In fact, there are more women in every age category working for minimum wage then men. While many minimum wage workers are high school and university students trying to finance their education, 24.6% of minimum wage workers already have some form of post secondary education. The Manitoba Federation of Labour reports that 20% of minimum wage earners are family heads, some of whom are single parents with children under eighteen years of age. This means an increase in the minimum wage would make a real difference for many individuals and families in Manitoba.

Those who oppose minimum wage increases generally argue that it is a ‘job killer’ and does more harm than good because of negative employment effects. However, recent studies suggest that negative employment effects of an increase are very small to non-existent. There are even positive impacts. While there is no evidence to suggest that minimum wage increases have anything but marginal employment effects, we do know that there are enormous immediate and long-term benefits for low-income workers and their families. Increased minimum wages overwhelmingly benefit all low-wage workers by increasing their total wages and putting more money in their pockets. An increase in the minimum wage is an immediate spur to the local economy but more importantly, it improves the health and well being of individuals and families across Manitoba by enhancing their ability to afford adequate housing, nutritious food, and to move out of poverty.

Over the past year, the Coalition has been actively promoting the idea of a just minimum wage. Activities have included meeting with Provincial Ministers and members of the business community, letter writing, issuing media releases, creating and maintaining the Just-Income website, developing fact sheets on the minimum wage in Manitoba, and circulating a petition calling on Manitoba’s political party leaders to commit to the Coalition’s recommendations. Currently, planning is underway for the Coalition’s upcoming fall campaign. The ‘Just Income Week’, will be a seven-day event in October featuring activities throughout the City of Winnipeg such as media releases, newspaper articles, guest speakers, street theatre and art, concerts, public forums, poverty workshops, and the presentation of the petition to the Manitoba Legislature.

While it is encouraging that the Government of Manitoba has committed to "continue to improve the minimum wage", the Just Income Coalition is concerned it will not go far enough. The Coalition believes the government should:

• immediately increase the minimum wage to $7.00 per hour followed by an increase to $7.75 by the end of 2003
• implement regular increases until the minimum wage reaches 60% of the average industrial wage
• index the minimum wage to a commonly accepted indicator to ensure its value is not lost over time

The Coalition believes these measures are required to counter the effects of years of neglect and to ensure a just income for all Manitobans.

For more information on the Coalition and their activities, or to sign the online petition (Manitobans only) please visit www.just-income.ca.