B.C. raising minimum wage by 45 cents, will still be below living wage

In three months, B.C.’s minimum wage will be rising once again, but it still won’t be enough to match the living wage in Metro Vancouver.

As of June 1, the minimum wage will be $15.65, an increase of 45 cents. That was calculated based on the rate of inflation, which was 2.8 per cent last year.

“This is so wages keep pace in a predictable way. This provides certainty for businesses as well,” Labour Minister Harry Bains said Monday.

Although $15.65 will be the highest minimum wage in Canada, it falls $4.87 short of a living wage as indicated by a report from Living Wage for Families BC.

That group calculated its living wage of $20.52 by factoring in the cost of groceries, housing, and travel costs. Yet, many British Columbians are not making close to this amount.

According to Bains, B.C.’s inflation rate this past year was the highest it’s been since 1993. B.C. is the first province to increase its minimum wage based on inflation rates.

”B.C. had one of the lowest minimum wages in the country prior to 2017, but was one of the most expensive places to live,” Bains said.

In 2017, B.C.’s minimum wage was $11.35.

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At an annual minimum wage increase of 45 cents, Living Wage for Families BC says it would take over five years for it to match the basic cost of living in Metro Vancouver.

Anastasia French, lead organizer of the group, says although she is happy to see the increase, says this isn’t good enough.

“In recent months, the cost of living has shot up. The cost of food, the cost of gas, the cost of everything. We know there is a $5/hr gap between the minimum wage and what families actually need to be able to survive.”

French says the government needs to make strides to achieve a living wage for most people, to end poverty cycles, and ensure a better quality of life.

However, with B.C. having the highest minimum wage of all the provinces, French says it is up to British Columbians to stand up for increased wages.

“Workers that are earning minimum wage often have to work an extra day a week to be able to make ends meet to afford what they need. They are not spending money in their community, in local businesses. It’s not good for their health, and it’s not good for well-being.”

However, Bains suggests the increase will help the lowest paid workers keep up with increased cost of living and ensure they are not forgotten.

“We do not want our lowest-paid workers to fall behind. The minimum wage increases tied to inflation are part of our plan to build an economy that works for everyone.”