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By Josh Hall | @Vancan19

covering basic expenses & modest living

Alberta living wages far exceed minimum wage; province ‘actively assessing’ wage structure

Nov 10, 2023 | 4:35 PM

Red Deer’s living wage is now at $18.75/hour, according to the latest report from the Alberta Living Wage Network (ALWN).

A living wage is defined as:

“…what people need to earn to cover the actual costs of living in their community. It assumes that each adult is working full time (35 hours/week) and includes more than the basics of food, clothing, and shelter – it also considers unexpected costs, small investments in education, childcare, and participating in the community.”

The new number of $18.75 for Red Deer, which is a weighted average, is actually lower than last year’s report from the ALWN, which had it pegged at $19.65/hour. But it’s still higher than any of the living wages reported for Red Deer in 2018, 2016 or 2014 (see below).

A chart shows living wage estimates for Red Deer in 2018, 2016 and 2014, broken down into three categories. (City of Red Deer)

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Keeping in mind the actual minimum wage in Alberta is $15/hour.

Broken down for Red Deer in 2023, the living wage is $16.65/hour for a family of four, $21.78 for a lone parent, and $21.38 for a single individual.

The new report, which covers 16 Alberta municipalities, takes into account inflation and the rising cost of shelter and food, as well as new and increased government benefits.

Of the latter, there were about $3,000 to $4,000 worth of an increase in the past year, but shelter and food costs also rose several percentage points.

The report suggests a family of four in Red Deer will spend $14,159 just to buy food for one year. That’s compared to $12,825 in 2018, according to a report done by the City of Red Deer.

Take into account clothing, shelter, transportation, child care, health care, tuition, other household costs and having a contingency fund, and the yearly income a Red Deer family of four needs is $78,601. In the 2018 City report, that number was $73,013, a change of 7.7 per cent.

“Despite increasing costs on just about everything – particularly shelter – we did see some things that put downward pressure on the living wages,” says Ryan Lacanilao, coordinator, ALWN. “Government affordability measures and the Canada Dental Benefit have helped families. What’s missing in Alberta is any real action on increasing minimum wage despite every single other province making increases.”

Andrea Smith, press secretary for Alberta’s Ministry of Jobs, Economy and Trade, says the government acknowledges the significant pressures Albertans are facing amidst high inflation and interest rate increases.

“We are also aware of the potential consequences of altering the minimum wage, affecting not only workers and small businesses but also leading to increased costs which are ultimately flowed through to all Albertans,” says Smith. “We are actively assessing the appropriateness of the current wage structure.”

Smith says the economy is gaining momentum, and notes actions the province has taken to help, including new legislation which states that income taxes cannot be increased without Albertans voting in a referendum, as well as maintaining no provincial sales tax. Smith also notes the fuel tax suspension, re-indexing of payments for seniors and those with disabilities, support for food banks and increased funding for transit pass programs.

Smith also says the federal carbon tax continues to hurt Albertans.

“We of course support moving up the minimum wage, which has been frozen for five years and is certainly below the living wage in all parts of the province,” says Karen Kuprys, secretary treasurer for the Alberta Federation of Labour (AFL).

“Raising the minimum wage would help address issues such as higher housing costs, rising energy costs and increasing mortgage costs. Minimum wage matters, but so do other government policies.”

Kuprys says raising the minimum wage, while a necessary step, would only be a bandaid solution if the government doesn’t also take other avenues to help Albertans.

The AFL also believes, she says, that there needs to be more legislation that would make it easier for employees to unionize.

“This would help solve the affordability crisis, and it’s a way to address the gender wage gap,” she says.

Kuprys says the latest data shows 483,800 Albertans, or 22 per cent of the population, are unionized, which is the lowest rate in Canada.

While Red Deer’s weighted average is $18.75/hour, others like Brooks are at $19.05, Edmonton is at $22.25, Calgary sits at $23.70, and Canmore is at a whopping $38.80.

Alberta has one of the lowest minimum wages in Canada, level with Newfoundland & Labrador, Nova Scotia and PEI (set to rise April 1). The highest are the Yukon at $16.77 (set to rise April 1) and B.C. at $16.75. Only Saskatchewan is lower at $14.00.

To read the full 2023 ALWN Living Wage report, visit livingwagealberta.ca.

READ MORE

• 2022: No plans to hike minimum wage, says gov’t, as Red Deer’s living wage rises 14%