Minimum wage = poorhouse: Full-time workers on $8 an hour earn below poverty line
The Province
November 2, 2006
By: David Carrigg

EXCERPT

The B.C. Federation of Labour yesterday called for an increase in the minimum wage to $10 an hour.

"The provincial government likes to crow about a booming economy, but it's only booming for a few," said federation president Jim Sinclair. "B.C.'s lowest-paid workers have been left behind."

An experienced worker in B.C. must be paid at least $8 per hour.

Workers with fewer than 500 hours of work experience must be paid at least $6 an hour, the so-called "training wage" that the federation wants scrapped. A person working full time at $8 an hour earns $15,600 a year after tax. At $10 an hour, a worker earns $17,500 a year.

Statistics Canada says an individual must earn at least $17,000 a year after tax to stay above the poverty line.

Aly Woodward knows what it's like to live on the financial razor's edge. The 22-year-old mother of one quit her $8-an-hour job at McDonald's four months ago, after realizing it was cheaper for her to stay home and look after her baby to avoid daycare costs.

"An extra $2 an hour would make a difference," she said.

Dave Park, chief economist at the Vancouver Board of Trade, said increasing the minimum wage would reduce demand for workers.

"That's simple economics," Park said. "Right now, B.C. has the highest minimum wage of any province. If we are leading the pack, how far ahead do you want to go?"

Park said that due to B.C.'s booming economy, there is a labour shortage, meaning many low-income workers are already earning more than the minimum wage.

Sinclair said hiking the minimum wage would benefit 250,000 workers. The Canadian Federation of Students pointed out yesterday that while tuition costs have almost doubled in the past five years, the minimum wage has stayed the same.

The governments of Manitoba, Newfoundland, Ontario and Saskatchewan are increasing their minimum wages next year.

Labour Minister Olga Ilich said the government is considering scrapping the training wage, but there are no plans to raise the minimum wage....

He said 60 per cent of those earning minimum wage live with family and are therefore better protected from poverty.