Alberta freezes minimum wage

EDMONTON—Minimum wage rates in Alberta have been frozen for the rest of 2010.

The province’s $8.80 wage, sixth highest in the country after Manitoba, will be the subject of a minimum wage policy review.

“This decision reflects what government feels will both protect jobs during these uncertain economic times and support the economy,” said Alberta’s employment and immigration minister, Thomas Lukaszuk, in a press release.

“In addition to freezing the minimum wage, I will also request an all-party committee review of our current policy, ensuring that our approach is what’s best for Albertans.”

Ontario has the highest minimum wage in the country, at $9.50, with British Columbia at the bottom of the list at $8 per hour.

Mark von Schellwitz, western vice-president for the Canadian Restaurant and Foodservices Association, welcomed the decision to temporarily hold off on more increases.

Alberta is crippled by a massive $4.7 billion budget deficit in 2010-11, a number the province wants to eliminate by 2012-13.

In a statement, von Schellwitz indicated that the CRFA is looking for the province to end its policy linking minimum wage increases to the rate of wage inflation the previous year.

“It does not reflect current market conditions,” the statement reads. “This policy also fails to provide operators with enough notice to revise labour budgets and implement the minimum wage adjustment.”

Alberta’s policy of basing the minimum wage on the province’s average weekly earnings came into effect in the summer of 2007.

Von Schellwitz said members of the province’s restaurant and food service industry are being sought to participate and provide input in upcoming minimum wage policy consultations.

It is expected that the CRFA will push the government to bring in tip and training wage differentials the next time Alberta’s minimum wage is scheduled to increase.