The Government of Alberta said it has no plans to make changes to the minimum wage following the release of a report, March 18, 2023. (Photo: Lethbridge News Now)

By David Opinko

Government indicates no plans to change minimum wage in Alberta

Mar 18, 2023 | 9:44 AM

EDMONTON, AB – Despite some negative findings in a government-commissioned report, the province said it has no plans to change the current minimum wage structure in Alberta.

The Minimum Wage Expert Panel report has been made publicly available as of March 17, 2023.

Minister of Jobs, Economy, and Northern Development Brian Jean said in a news release, “Maintaining the current minimum wage gives employees and employers predictability and stability during a time of economic growth and labour shortages.”

Between October 1, 2015, and October 1, 2018, the Government of Alberta increased the general minimum wage from $10.20 per hour to $15.00 per hour. It also eliminated the lower liquor server minimum wage and brought it up to the same amount at the general minimum.

The report examines the macro-level impacts that these changes had on businesses and the Alberta economy as a whole.

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It found that the increases to minimum wage were responsible for approximately 23,000 jobs being lost across the province from 2015-2018.

The job losses were reported the greatest among younger workers.

According to the report, survey data from Alberta business owners shows that they experienced severe escalations in labour costs, which impacted the levels of employment they were able to maintain.

“The responses included: reducing the number of employees, reducing or eliminating plans to hire new or additional workers, reducing or eliminating plans to hire young workers, postponing renovation and expansion plans and raising prices,” reads a section of the report.

The authors of the report say many liquor servers ended up taking home less money, despite the increase to their minimum wage.

They say this is at least partially because liquor servers make large portions of their incomes from tips and some customers would tip less when they know the workers have a higher wage.

The report states that “the vast majority of Alberta restaurants signal that they would increase shifts and hours for liquor servers if a liquor server wage was re-established in Alberta.”

Following the release of the report, Jean said his biggest takeaway is that making large, unexpected changes to minimum wages can hurt employment.

However, he adds, “Contrary to the Opposition’s claims, Alberta’s government has no plans to change the current minimum wage structure or introduce a separate liquor server minimum wage.”

The full report can be accessed on the Government of Alberta website.

READ MORE: Lethbridge News Now