Minimum wage hike causes major divide amongst Albertans

A divide amongst Albertans threatens to loom over as the provincial tax and minimum wage is set to increase by October 1, 2017. (CTTO: Alana Anne Labrador)

September 27, 2017

As of October 1, 2017, the general minimum wage and provincial tax for all domestic Alberta employees will be increasing.

Given the circumstances with Alberta’s growing economy, minimum wage employees will be given an increase of $1.05 more than their usual salary, increasing to an overall $13.60 per hour.

Previously set from $11.20 per hour to $12.20, the Alberta NDP provincial government has elected their main goal set in mind, hoping to have the minimum wage increase to an accumulating rate of $15.00 per hour by the year 2018.

A story from CTV news featured in 2016 takes quote from the Alberta Labour Minister, Christina Gray, who voices a positive concern to address the public.

“These increases will help insure that low wage earners can at least meet their basic needs,’ Gray said.

Since June 2016, Alberta’s NDP government has aligned themselves to increasing provincial and good services taxes [GST], in order to fully support the rise of the newly set minimum wage.

However this set wage increase is not without its criticism.

Lily Lakatos, a registered ortho technician working for Alberta Health and Services, has voiced her concern on the increasing wage rates soon to be occurring.

With one of her main concern expecting that the increasing minimum wage may lead to inflation.

“Provincially, we don’t have enough money,” Lakatos said.

“In truth, I don’t think we’ll have much purchasing power. With everything going up in prices, this will not encourage people to spend more.”

With the prices going up along with the provincial and GST taxes for the price of earning $13.60 per hour, Lakatos admits that from a buyer’s perspective, it may just not be enough.

“I believe that everyone is going to lose,” she said.

In a recent study with the Alberta Employment Standards, it shows that about 296,000 Albertans, (15.4% of workers) are currently earning less than $15.00 per hour.

Also written in the Alberta Employment Standards, the increasing minimum wage also hopes to help reduce poverty, lessen the burden of social support programs, and improve the quality of life for the vulnerable.

With the increasing minimum wage happening soon, the Alberta NDP government hopes to improve the lives of all those affected with the struggles of having low income.

Including of course, improving Alberta’s employee satisfaction.

Though despite criticism from some local Albertans, there have been many who have also voiced their eagerness and excitement for the upcoming changes to Alberta’s economic future.

Carole Crites, a retired business employee and local Albertan believes that the increasing minimum wages will affect the province in a more positive way than negative, especially with students.

She believes, most young workers who are also students balancing their work life and their studies, are not earning enough money for the work that they are being put through.

“There are so many complaints, especially with university students. They feel like they are not earning enough to help support their basic needs and necessities,” said Crites.

With that being said however, Crites was quick to admit that while it was good that the minimum wage was going up, there still may be a challenge to overcome with prices and spending options.

“Especially for the middle class and low income families, there may be a downside to the increase of the minimum wage,” Crites said.

“Because as the prices go up, so does the provincial and GST taxes. It may take awhile for people to fully grasp it.”

Sheanan Gallie, a part time student at SAIT does not have much concern when it comes to the increasing minimum wages.

She positively admits that increasing the general minimum wage is appropriate.

“The cost of living in Calgary is so high, and it’s hard enough to live off of the minimum wage right now.”

With many Albertans concerned about the increasing of provincial taxes and GST, Gallie admits that there should not be a problem to this, as the minimum wage itself is increasing.

“The more you make, the more you pay in taxes,” said Gallie.

Phillip Kim, a student majoring in IT at SAIT, also voices his excitement over the increasing minimum wages.

“Overall, I think it might increase the quality of living,” Kim said.

“I believe that this will affect the middle and low income class especially, more positively.”

Despite having the issue leaving many divided, one thing remains the same.

Many locals have openly admitted to wanting more change for the economic future of Alberta.

The greater effects that the minimum wage creates for the future of budgeting and spending, some may admit will increase–especially by 2018.

Others voice their concerns over inflation and tax increase.

However if one thing is for certain, a change is coming to Alberta.

This is a news article assignment that was submitted on Sept 30, 2017.