Minimum wage delay leaves a million workers in Canada wallowing in poverty

Minimum wage delay leaves a million workers in Canada wallowing in poverty

Ontario Finance Minister Greg Sorbara bowing to public pressure to raise the minimum wage to $10.00 has recently announced the phasing in of .75 annual increases starting next March 31 with the rate becoming $10.25 in 2010. But critics from the labor sector and other political parties argued that the plan leaves a million people working at poverty wage level for approximately three more years.

Already, a million Ontarians earn less than $10.00 an hour. Despite the fact that Ontario has relatively enjoyed strong economic growth since the 1990’s, the province’s minimum wage has remained stagnant at $6.85 for eight long years far behind inflationary rates.

In 1995, the Harris government froze minimum wage. At the time, the minimum wage was worth $7.89. In addition, the 2003 inflation exacted its toll on the workers take home pay and eroded minimum wage level to $6.85.

A study by the Canadian Centre for Policy Alternative (CCPA) indicated that workers earning minimum wage “even full-time for a year” practically live in poverty. Ontario’s minimum wage was raised to $8.00 per hour only last February 1, 2007 after labor and concerned sectors held concerted and widespread campaigns against government inaction. The raise, however, is barely enough to scratch a fraction of the rise in consumer prices brought about by the gasoline price hikes. Gas prices have skyrocketed to more than $ 1.05 per liter in recent months with inadequate government intervention or price ceiling control in place. The gasoline and diesel price increases have further reduced the take home pay of workers already reeling from oppressive and exploitative working conditions.

The province’s minimum wage legislation is supposed to protect workers from exploitation and ensure workers earn income wage levels to support themselves.

Today’s inadequate minimum wage, however, ensures continuing poverty for one million workers. There is, therefore, an urgent need for all workers of Ontario, labor unions and allied organizations to unite and continue the campaign to raise the minimum wage to $10.00 per hour

BULATLAT