Advocacy & Policy

RCC Notice:

Minimum Wage Advisory Committee in Newfoundland and Labrador Recommends Increase and Formula for Future Minimum Wage Increases: Minister Likely to Approve Recommendations

January 14, 2013

ISSUE:
On December 6, 2012, the Newfoundland and Labrador Minimum Wage Advisory Committee outlined two recommendations for the Provincial Government to consider:

  1. That the minimum wage be increased in 2013 to reflect the loss of purchasing power in the minimum wage since 2010. The increase should be preceded by at least six months notice to stakeholders and the public; and,
  2. Beginning in 2014, that the minimum wage be adjusted annually based on the previous year’s all-items Consumer Price Index for Newfoundland and Labrador. Adjustments would be announced to the public by January 31 of each year and implemented on May 1 of each year. They would be rounded to the nearest $0.05.

Source: Press Release: Newfoundland and Labrador Labour Relations Agency
Given recent government history in Newfoundland and Labrador, Hon. Darin King, Minister responsible for the Labour Relations Agency is likely to accept this recommendation.

OBJECTIVE:

Communicate to members RCC’s success in convincing the Newfoundland and Labrador Minimum Wage Advisory Committee of the need for the provincial government to at least recognize that an increase in minimum wage, "…should be preceded by at least six months notice to stakeholders and the public."

Communicate to members that despite RCC’s advocacy against a minimum wage increase at this time, RCC members should prepare for the likelihood that Minister King will accept the Advisory Committee’s recommendations.

BACKGROUND:

In September 2012, RCC contributed to the stakeholder consultation undertaken by the Newfoundland and Labrador Minimum Wage Advisory Committee and opposed a minimum wage increase.

RCC argued that in light of continued economic challenges in Canada and in Newfoundland and Labrador, combined with the fact that Newfoundland and Labrador already has one of the highest provincial minimum wages in the country, now is not the right time to increase the province’s minimum wage.

RCC’s submission to the Newfoundland and Labrador Minimum Wage Advisory Committee is available here.

CURRENT STATUS:

Despite the fact that the province’s minimum wage has increased 67 per cent since 2005, the Advisory Committee has decided to recommend additional minimum wage increases.
The December 6th press release can be found on the Newfoundland and Labrador Labour Relations Agency website at the following link:
http://www.releases.gov.nl.ca/releases/2012/just/1206n06.htm

The Newfoundland and Labrador Minimum Wage Advisory Committee Observations and Findings report can be found on the Newfoundland and Labrador Labour Relations Agency website at the following link:
http://www.gov.nl.ca/lra/min_wage_review_2012/MWReport.pdf

NEXT STEPS:

Minister Darin King should make a decision regarding minimum wage and the recommendations of the Minimum Wage Advisory Committee before the end of January 2013.  It is expected that Minister King will follow the recommendations of the Advisory Committee.
RCC will alert its members of the decision made by Minister King.

If you have any questions or concerns, please don’t hesitate to contact Jim Cormier at:  jcormier@retailcouncil.org or (902) 422-4144