Friday, April 30, 2010

"A reason to celebrate: The lowest paid in Ontario just got a raise"

http://www.theglobeandmail.com/news/opinions/a-reason-to-celebrate-the-lowest-paid-in-ontario-just-got-a-raise/article1517697/
http://ccapvancouver.wordpress.com/2009/01/19/bc-has-the-worst-poverty-rate-in-canada-for-5th-straight-year/


Summary
As promised three years ago, the Ontario government has finally increased their province's minimum wage by seventy-five cents to $10.25 an hour.  Not only is this the first time that minimum wage surpasses ten dollars; it is also the highest amount in Canada.  Other provincial governments, such as Newfoundland and New Brunswick, will follow this practice by inflating their minimum wage to ten dollars an hour by September of next year.  Although the average wages only increased by four percent in 2009, our country's minimum wages on average have risen up by twenty percent.  However, other provincial governments have allowed their minimum wages to decline.  BC is one example.  Although BC had the national highest minimum wage of $8 in 2001, this wage has remained the same for nearly a decade and is presently the lowest in Canada.  To make matters worse, Premier Campbell has introduced a $6 training wage for new employees, which ultimately lowers the purchasing power of low-paid workers.

Connection
From an economic perspective, a company can hire more employees with a lower minimum wage. Employers doing payroll welcome lower minimum wages as they can contribute less for their employees' CPP, RPP and EI.  Unemployment rate will also decrease as there is a large demand for low wage workers.  With low wages, the cost of producing goods will be less expensive for employers, signifying that they can reap more profit for themselves.  Employers need to follow the Employment Standards Regulation, set by the BC's Ministry of Labor.  To ensure that their employees get the minimum wage of $8 an hour, employers need to have all documents that their employees have at least 500 hours of paid work experience.

Reflection
Although Vancouver is one of the cities with the highest standard of living, it is unfair that our province's minimum wage has remained the same since 2001.  Even if a single person works full-time for fifty-two weeks, earning $16 640 a year is not an acceptable 'living wage'.  It can only provide a person with enough food and some necessities.  Mortgaging a house is definitely out of the picture.  According to a blog entry in 2009 by Carnegie Community Action Project, BC has the worst poverty rate in Canada for five consecutive years.  Single parents, women, visible minorities, part-timers, immigrants and people with disabilities are usually paid the minimum wage.  Since BC is one of the provinces with the highest poverty rates and housing issues, the government can solve these problems by increasing the minimum wage.  Just by boosting the amount to $10 will make a big difference to the workers.  Low-income families can step out of the poverty-line, thus they no longer need to rely on the government for financial support.  They will have enough money to pay for food, children's tuition, rent payments, and possibly start an investment.





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