Alberta NDP calls on gov’t to support increases to minimum wage – CityNews Edmonton

Legislative Proposal in Alberta Targets Decent Work and Reduced Inequalities (SDGs 8 & 10)

Introduction

A legislative proposal, Bill 201, the Protect Workers’ Pay Act, is under consideration by Alberta’s Members of the Legislative Assembly (MLAs). The bill proposes significant reforms to the province’s minimum wage structure, directly addressing several United Nations Sustainable Development Goals (SDGs), particularly those concerning poverty, inequality, and decent work.

Alignment with Sustainable Development Goals

The proposed legislation strongly aligns with a number of key SDGs:

• SDG 1: No Poverty: By increasing the minimum wage and indexing it to inflation, the bill aims to ensure that wages provide a sufficient standard of living, a critical step in poverty reduction.
• SDG 8: Decent Work and Economic Growth: The core of the bill focuses on promoting full and productive employment and decent work for all. It seeks to establish fair wages, protect workers’ earnings through tip protection, and foster inclusive economic conditions.
• SDG 10: Reduced Inequalities: A central provision of the bill is the elimination of the lower minimum wage for youth workers, a direct measure to combat age-based inequality and reduce income disparities within the province.

Key Provisions of the Protect Workers’ Pay Act

The bill outlines a multi-faceted approach to achieving its objectives, consistent with SDG targets for fair and equitable employment:

1. Phased Wage Increase: The minimum wage would increase by $1.00 annually over three years, reaching $18.00 per hour by October 2027.
2. Inflation Indexing: To maintain its value, the minimum wage would be indexed to the Consumer Price Index (CPI), ensuring wages keep pace with the cost of living.
3. Elimination of Youth Wage Differential: The bill would abolish the separate, lower minimum wage for employees under 18, standardizing pay for all workers and promoting equality (SDG 10).
4. Tip Protection: New measures would be introduced to guarantee that gratuities are directed to the workers who earn them, preventing employer skimming and securing workers’ full compensation (SDG 8).

Stakeholder Perspectives and Economic Considerations

The debate surrounding Bill 201 reflects differing views on how to best achieve sustainable economic growth and decent work for all (SDG 8).

Proponents’ Stance (NDP)

• The bill is framed as a necessary measure for worker fairness and affordability.
• Proponents argue that the current minimum wage of $15.00 per hour, unchanged since 2018, is insufficient to meet the rising cost of living, undermining progress towards SDG 1.
• They contend there is no evidence that the lower youth wage has improved youth employment, suggesting its elimination is a matter of equity.

Opponents’ Stance (UCP Government)

• The Ministry of Jobs, Economy, Trade and Immigration expresses concern that a mandated wage increase could jeopardize businesses and negatively impact youth employment.
• The government argues that previous increases led to significant job losses for young workers, posing a risk to the SDG 8 target of achieving full employment for youth.
• They cite a high-pressure job market as a reason for caution against measures that could disincentivize the hiring of entry-level workers.

Analysis of SDGs in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 1: No Poverty

   • The article discusses increasing the minimum wage to help workers cope with the “affordability of everyday things” and keep pace with the “cost of living.” This directly relates to preventing in-work poverty and ensuring individuals have sufficient income for a basic standard of living.

2. SDG 8: Decent Work and Economic Growth

   • This is the most central SDG. The proposed “Protect Workers’ Pay Act” focuses on fair wages (increasing the minimum wage), protecting income (tip-protection measures), and promoting fair employment conditions. The debate also touches on the economic impact, such as the potential effect on youth unemployment, which is a key aspect of this goal.

3. SDG 10: Reduced Inequalities

   • The article highlights a specific form of inequality: the youth minimum wage differential. The bill’s proposal to “eliminate lower pay for youth workers so employees under 18 would get paid the same as other workers” is a direct measure to reduce age-based income inequality.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Target 1.2: Reduce poverty in all its dimensions

   • By proposing to raise the minimum wage to $18 an hour by 2027 and index it to the Consumer Price Index (CPI), the bill aims to ensure that the lowest-paid workers do not fall below a nationally relevant poverty line, especially as the cost of living increases.

2. Target 8.5: Achieve full and productive employment and decent work for all, and equal pay for work of equal value

   • The article directly addresses this target. The call for a higher minimum wage and tip protection aims to provide “decent work.” The proposal to eliminate the separate, lower wage for workers under 18 is a clear effort to achieve “equal pay for work of equal value,” irrespective of age.

3. Target 10.4: Adopt policies, especially fiscal, wage and social protection policies, and progressively achieve greater equality

   • Bill 201 is a prime example of a wage policy designed to achieve greater equality. By legislating a higher minimum wage and removing the age-based pay differential, it seeks to create a more equitable wage structure for low-income and young workers.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Minimum Wage Level

   • The article explicitly provides quantifiable data points that serve as indicators: the current minimum wage ($15/hour), the lower youth wage ($13/hour), and the proposed future minimum wage ($18/hour by 2027). These figures can be used to track progress on fair pay.

2. Consumer Price Index (CPI)

   • The article mentions the proposal to “index the minimum wage to the Consumer Price Index (CPI).” The CPI is a direct indicator used to measure inflation and the cost of living, ensuring that wage growth is not eroded by rising prices.

3. Youth Unemployment Rate

   • This indicator is mentioned in the context of the debate. The Ministry’s press secretary claims past increases “cost more than 21,000 jobs for Alberta’s youth” and expresses concern about the “high youth unemployment rate.” This rate would be a key indicator to monitor the economic impact of the proposed wage increase.

4. Wage Differentials

   • The gap between the adult minimum wage ($15) and the youth minimum wage ($13) is an implied indicator of age-based inequality. The success of the bill in this regard would be measured by the elimination of this differential.

Table of SDGs, Targets, and Indicators

Source: edmonton.citynews.ca