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By Josh Hall (Twitter: @Vancan19)

alberta living wage network

No plans to hike minimum wage, says gov’t, as Red Deer’s living wage rises 14%

Nov 16, 2022 | 9:58 AM

The living wage in Red Deer is now $19.65 per hour, according to new numbers from the Alberta Living Wage Network (ALWN).

A living wage is defined as the hourly wage a worker needs to earn to cover their basic expenses and participate in the community.

Red Deer’s number last year was $17.15, meaning a 14.6 per cent increase locally. Meantime, Alberta’s minimum wage is still $15 per hour.

This year, the ALWN adjusted its methodology for determining the living wage.

Last year, calculations were based on the Canadian Living Wage Framework, which primarily focuses on a family of four. The new method finds a weighted average for three household types: 1) a two-parent family with two young children, 2) a lone parent with one child and 3) a single individual living alone.

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“What we’ve seen in the past year is record inflation across the province, which means prices for goods and services have increased more than usual,” explains Bobby-Jo Stannard, Superintendent, Community Development, at The City of Red Deer’s Safe and Healthy Communities department.

Stannard represents the City on the Central Alberta Poverty Reduction Alliance (CAPRA) which is a member of ALWN.

“The ALWN is encouraging employers to provide a living wage to employees. Education is needed about what costs are for a family, to not only live above the poverty line, but fully participate in community. That means covering not just basic expenses, but being able to participate in recreation opportunities or have children be able to buy their friend a birthday present. These are all part of the conversation,” says Stannard.

“Red Deer is on the lower end in terms of the living wage calculations across the province, and that’s in part because of our extensive transit system which allows individuals to fully participate in community without needing to own a car.”

Stannard clarifies that $19.65 means before taxes and dues. It’s also not the same thing as the poverty line.

“When we talk about living wages, we mean wages that don’t force someone to choose between paying rent and getting groceries, or skipping a meal versus picking up medicine,” she says.

“We believe communities support the ability for individuals to partake in community and not make those choices. The challenge is working with businesses and corporations to meet that need, but we also know businesses have faced unprecedented challenges the last two years. This is about starting a conversation with them about the realities out there.”

Extended health benefits and staff discounts can, to a degree, make up the gap between one’s wages and the living wage, Stannard acknowledges.

2022 numbers across Alberta (2021 in parentheses)

• Calgary: $22.40 ($18.60) ⬆20.4%
• Canmore: $32.75 ($37.40) ⬇12.4%
• Cochrane: $22.35
• Drayton Valley: $19.65
• Drumheller: $21.20 ($19.70) ⬆7.6%
• Edmonton: $21.40 ($18.10) ⬆18.2%
• Fort McMurray: $22.50 ($27.35) ⬇17.7%
• Grande Prairie: $19.65
• Lethbridge: $20.30 ($19.00) ⬆6.8%
• Medicine Hat: $17.50
• Red Deer: $19.65 ($17.15) ⬆14.6%
• Rocky Mountain House: $21.85 ($18.05) ⬆21.1%
• Spruce Grove: $20.70
• St. Albert: $22.40
• Stony Plain: $20.40 ($17.20) ⬆18.6%

“Alberta’s government has already taken a number of steps to make life more affordable, including a fuel tax pause, offering over 1.9 million Albertans with monthly electricity rebates, and protecting over 1.6 million Albertans from rising natural gas prices through that rebate. We know there is more work to do. We are working on a plan that will help save families and businesses money as costs continue to rise,” a statement from the Ministry of Jobs, Economy and Northern Development reads.

“Alberta is one of the most affordable places in the country to live, work and raise your family. Albertans pay less in overall taxes with no PST, payroll tax or health premium and a low provincial income tax indexed for inflation. Our economy has momentum, and that momentum supports wages and creates jobs. At this time the government of Alberta has not looked into raising the minimum wage.”

The Opposition NDP doesn’t buy the positive spin, however.

“The UCP removed caps on auto insurance and electricity, causing Albertans’ bills to skyrocket. The UCP cut upwards of $700 million from post-secondary which resulted in increased tuition,” says Christina Gray, Critic for Labour and Immigration.

“And not only did the UCP cancel the $25/day child care pilot program when parents were begging them not to, now we see Danielle Smith threatening our province’s agreement with the federal government to bring in $10/day child care with her Sovereignty Act. These choices by the government are having direct and immediate impacts on Alberta families, and it needs to stop.”

The Alberta Living Wage Network was launched in Nov. 2021, and is made up of 16 community-based networks. Currently, there are 75 living wage employers certified by ALWN.

More information is at livingwagealberta.ca.