Introduction
An increase in the minimum wage is a highly controversial issue across the world. For example, the current minimum wage in the United States stands at 7.25 US dollars per hour, despite the concerted government efforts to raise it to 15 US dollars per hour by 2025 (Marchand et al., 2020). The current minimum wage in the US has never been raised since 2009. Previous legislation on whether or not to raise the minimum wage has died in Senate due to the controversy and politics surrounding raising the minimum wage in the country. The issue is equally controversial in British Columbia, Canada, and the efforts have been to raise the wage to 15.65 US dollars per hour. Although there has been resistance to increasing the minimum wage in British Columbia over the years, the government has committed to supporting workers and their families.
Topic Overview
For over two decades, the federal minimum wage has been a subject of the Canadian labor department in the territory or province where the worker is employed. The minimum wage is the lowest pay an employer can legally pay its workers. In this case, the minimum wage happens to be the labor standard as guided by law so that workers can have their rights regarding fair compensation (Wilson, 2021). The policy for having minimum pay varies across the board. For example, in Canada, the policy varies from province to province, and Vancouver may not have the same policy as British Columbia, Manitoba, or Quebec. The Canadian government has always had a minimum wage policy to protect the employment and compensation rights of non-unionized workers.
With its policy paper on wage, the Canadian government has had the interest in reducing the number of low-paying jobs, creating work incentives, stimulating growth, addressing inequality, and alleviating poverty. Therefore, the government has primarily advocated raising the minimum wage to acceptable levels. The minimum wage is also set and adjusted in various ways with the assistance of the government (Marchand et al., 2020). Some of the methods include government efforts, independent boards, and legislation. Factors influencing the minimum wage include economic factors, average wage rates, and inflationary pressures. The pioneer minimum wage rate was introduced in Canada at the beginning of the 20th century and was primarily applicable to children and women. For example, British Columbia and Manitoba enacted their minimum wage laws in 1918. Other provinces such as Saskatchewan, Nova Scotia, and Ontario have theirs in 1920.
The minimum wage in British Columbia has been controversial for many years. Most employers contest the minimum wage issue as advocated by the government because they are keen to control their ballooning wage bill and protect their bottom line. Many countries have their minimum wage rates based on their costs of living (Wilson, 2021). In the Canadian case, there is no minimum wage by the federal government, and every province, such as British Columbia, has its set minimum wage per law. In June 2021, the minimum wage in British Columbia was 15.20 US dollars per hour (Wilson, 2021). Therefore, every job that compensates its employees hourly, on commission, or salary must also reflect this wage.
Specific Focus Regarding the Topic
In British Columbia, numerous professionals are subject to the territory’s minimum pay and benefit when it is increased. Some positions that are subject to the minimum wage include home support workers, resident caretakers, farmhands, retail clerks, and fast-food workers and several others (Marchand et al., 2020). Therefore, many people rely on minimum wage in the territory, and raising it is relevant because it will ensure that everyone has the ability to afford to live in the territory. Otherwise, some people, particularly the lowly paid workers might be forced to move out of the province.
However, some people are not subject to such a wage in the territory. Therefore, the laws of the payments do not influence their compensation packages from their employers. Although the law requires employers to pay their workers a specific minimum compensation, this law covers not everyone (Brouillette et al., 2017). Such a rule does not apply to every position and person. For example, training for a job such as an apprentice is not subject to the minimum payment. Some of these cadres include camp leaders and caretakers who live within the premises where they work. In such positions, people may earn less than the minimum payment if their employer compensates them for board and room (Harris et al., 2018). However, a wage can only go down by a maximum of half a dollar per meal and 0.6 dollars daily for housing.
In British Columbia, the law on minimum pay is subject to most students below the age of 18 years, but there are minimal exceptions. For example, such a law does not cover those students working on-campus or those completing work-study projects. Before, British Columbia was among two other Canadian provinces that paid liquor servers and other workers who benefited from tips less than minimum pay (Barr, 2016). This was because employees who receive tips tend to raise their wages and would therefore not be subject to minimum compensation.
Arguments to Make
Having a minimum wage is very relevant for British Columbia so everyone working can have a decent living standard. Such a minimum payment is meant to ensure that everyone remains above the poverty line (Brouillette et al., 2017). In essence, it is a precautionary measure or safety net for all employees so that their employers do not exploit them. Such a wage is meant to cushion vulnerable employees to earn decently. In British Columbia, the average prices of commodities, homes, and food continue to rise, and the minimum payment must reflect the change (British Columbia, 2019). The wage in British Columbia compares favorably with other territories such as Quebec, Manitoba, and Alberta. For example, the salary is 15 US dollars in Alberta, 11.90 in Manitoba, and 13.10 in Quebec (British Columbia, 2019)
The minimum wage has a lot of variance among Canadian territories. The primary reason for such a marked variance is different living costs across the provinces. For example, Nova Scotia may not necessarily have the same living standards as British Columbia or Ontario. It is worth noting that the minimum salary in British Columbia is much higher than in a place like Manitoba due to various reasons (Barr, 2016). For example, purchasing a house, having leisure, and purchasing groceries are more expensive in British Columbia. As a result, the minimum salary is higher so that a person can have higher purchasing power and pay the living cost. The minimum wage is subject to statutory deductions by the employer according to government laws.
There are certain deductions that employers deduct from minimum pay in British Columbia. Some deductions include income tax, employment insurance, and the Canadian Pension Plan. Therefore, all employees between 18 and 65 years old and who work in pensionable organizations have CPP deductions. In this case, an approved calculation tool determines the amount of deductions from the employee. In many cases, employees in the territory also contribute to the employee’s CPP. The worker will benefit from such money when they retire from gainful employment (Brouillette et al., 2017). The minimum wage increase is usually meant to ensure low-income inequality levels in the Canadian territory. For example, vulnerable groups such as the youth, immigrants, and women benefit from the increase, lowering such inequality. Having a fair minimum wage is a relevant step in assisting in uplifting more individuals out of poverty. It is also meant to build a more robust economy and make life more affordable for British Columbians.
Conclusion
In conclusion, increasing the minimum wage is essential for every part of the world because it ensures that people keep poverty at bay. In this case, such people can be above the poverty line, which also reduces income inequality. In British Columbia, most vulnerable groups such as women and youth have significantly benefitted from a constant rise in minimum wages over the years. British Columbia’s wage policy demands an annual increase to cushion the low-income earners.
References
Barr, V. J. (2016). Planning for healthy and equitable communities in British Columbia: A critical analysis of the implementation of an equity lens in Healthy Built Environments initiatives [Doctoral dissertation, University of British Columbia]. The University of British Columbia Library. Web.
British Columbia (2019). TogetherBC: British Columbia’s Poverty Reduction Strategy. Web.
Brouillette, D., Gao, D., Gervais, O., & Cheung, C. (2017). The impacts of minimum wage increases on the Canadian economy. Bank of Canada. Web.
Harris, L., Janmaat, J., Evans, M., & Carlaw, K. (2018). Negotiating the frame for a living wage in Revelstoke, British Columbia: An econ-anthropological approach. Human Organization, 77(3), 202–213. Web.
Marchand, Y., Dubé, J., & Breau, S. (2020). Exploring the causes and consequences of regional income inequality in Canada. Economic Geography, 96(2), 83-107. Web.
Wilson, S. (2021). Living wages and the welfare state the Anglo-American social model in transition. Policy.