December 11, 2001

Labour and Immigration Minister Becky Barrett today released the recommendations of the Minimum Wage Board public review.

The board, appointed to advise the minister on the minimum wage, consists of a chair and an equal number of employee and employer representatives. The board was instructed to make recommendations on the level of the minimum wage and provide feedback on a tip differential, a training wage, current exemptions from the minimum wage and tying the minimum wage to an economic indicator. Manitoba's minimum wage was raised to $6.25 an hour effective April 1, 2001.

"This review has been an open process, actively seeking input from business, labour and the general public to help us effectively address the minimum wage issue," said Barrett. "The board has submitted their wide-ranging recommendations for my consideration and we are taking this opportunity to update Manitobans on our progress with the minimum wage review."

The board submitted separate reports from both the employer and employee representatives, as well as from the chair, with a total of more than 20 recommendations. Basic recommendations focused on level and timing, adoption of a standard for setting the minimum wage, differential wage rates and the inclusion of agricultural workers under minimum wage legislation.

The recommendations made by the chair include:

• an hourly minimum wage rate of $6.75 effective April 1, 2002, increasing to $7 on Oct. 1, 2002;
• adoption of the Statistics Canada Low Income Cut-off as the standard measure after October 2002;
• implementation of a sub-minimum wage equal to current minimum wage of $6.25 per hour for employees who are under 18 years of age, for employees receiving tips and employees with less than three months tenure only if Manitoba moves beyond the Acceptable Living Level Standard;
• assurances that employees receiving tips will receive the higher minimum after tips are counted; and
• inclusion of agricultural workers under minimum wage.

Recommendations made by the employee representatives include:

• an hourly minimum wage rate of $6.75 effective March 1, 2002, increasing to $7.25 per hour Oct. 1, 2002;
• adoption of a formula based on the Statistics Canada Low Income Cut-off to determine future minimum wage levels effective March 2003;
• rejecting sub-minimal wages for employees under 18 years of age, for employees receiving tips and for training; and
• including seasonal or permanent agricultural workers under minimum wage.

The employer representatives recommended:

• increasing the hourly minimum wage rate to $7 over three years only if there are sub-minimum wages levels implemented for workers under 18 years of age, for employees receiving tips and for employees with less than three months tenure;
• further study of linking the minimum wage to a standard economic indicator or adopting the Acceptable Living Level for short-term use; and
• further consultation on application of minimum wage to agricultural workers.

"We are looking for an equitable and balanced solution to this problem for the roughly 19,000 Manitobans earning minimum wage," Barrett said.

The recommendations submitted to the minister are being reviewed by government.

The board is chaired by John Godard, professor of industrial relations, I.H. Asper School of Business, University of Manitoba.

Employer representatives are:

• Tracey Epp, lawyer, Pitblado Buchwald Asper;
• Hartley Klapman, executive vice-president, MWG Apparel Corp.; and
• Bob Stevens, president and chief executive officer, Manitoba Restaurant Association.

Employee representatives are:

• Bernard Christophe, president, United Food and Commercial Workers, Local 832;
• George Harris, treasurer, Canadian Union of Public Employees, Local 2348; and
• Maria Jordan, business agent, UNITE, Local 459.

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1. LEVEL AND TIMING

1^st increase 2^nd increase Thereafter

Chairperson April 1, 2002 $6.75 Oct. 1, 2002 $7.00 Stats. Canada LICO (adjusted to Manitoba) be adopted as the standard over a period of several years

Employee Representatives March 1, 2002 6.75 Oct. 1, 2002 7.25 March 1, 2003 Stats. Canada LICO (adjusted) be basis of an adopted formula (increases March 1^st of each year)

Employer Representatives $7.00 over 3 years but only if there are sub-minimum wages for workers under age 18, for tipped employees and for employees with less than 3 months tenure.

Chairperson The Acceptable Living Level (A.L.L.) produced by Winnipeg Social Planning Council/Winnipeg Harvest (absent a computer allowance) be adopted as a minimal standard in the short term.

The Statistics Canada Low Income Cut Off (LICO) (adjusted to the cost of living in Manitoba) be adopted as the "just and favourable" low pay standard over the long term.

Employee Representatives Strongly support the use of an impartial standard so that the minimum wage is no longer a matter of political discretion.

The A.L.L. (including a computer allowance) be adopted as a minimal standard in the short term.

The Statistics Canada LICO (adjusted) be adopted as the standard used in a formula for future increases.

Employer Representatives Generally not opposed to the A.L.L. standard but believe that further study is needed.

Could possibly support linking the minimum wage to a standard but would need to evaluate the different measures to determine which one to use.

Chairperson Any sub-minimum wage should be adopted only if it is decided to move beyond the A.L.L. standard

There should be a sub-minimum wage equivalent to the current minimum ($6.25) for:

(i) workers under 18 years of age

(ii) tipped employees

(iii) employees with less than three months tenure

Tipped employees must be assured of the higher minimum after tips are counted. The sub-minimum should be adjusted periodically to ensure that it does not decline in real dollars.

Employee Representatives Reject the proposals for sub-minimum wages for employees under 18 years of age, for tipped employees and for training.

Employer Representatives Support for a minimum wage increase is conditional on the adoption of a sub-minimum wage for:

(i) workers under the age of 18

(ii) tipped employees

(iii) employees with less than three months tenure

Chairperson The exemption for agricultural workers should be eliminated.

Employee Representatives Agricultural workers who are hired on a seasonal or permanent basis must be covered by minimum wage.

Employer Representatives Did not receive enough input from this sector to make an informed decision.

Would like further consultation on this issue.