I have a populist piece in The Tyee this morning on how last week’s paltry $0.20 minimum wage increase in British Columbia actually reflects stagnant wages across the economy and why the Fight for 15 is everyone’s fight. Here it is in full.
Last week, the B.C. government reacted to the increasing push for a higher minimum wage… by giving minimum wage workers a 20 cent raise. Even Business in Vancouver magazine quoted UBC labour economist David Green calling the new higher wage “laughably low.” What perhaps hasn’t received enough attention is that the two-dime bump in the minimum wage — the first in three years — is not that far out of line with stagnant wages across the economy. For instance, the average wage in British Columbia grew by 14 cents in 2014! While 20 cents over three years doesn’t even allow minimum wage earners to account for inflation, the fact is most of us have been barely keeping up with price increases. Real wages, those adjusted for inflation, have been mostly stagnant.
While Canada-wide statistics paint a picture of modest wage growth since the end of the last recession in June 2009, much of this growth is due to the three oil boom provinces, Alberta, Saskatchewan and Newfoundland and Labrador. In fact, for the more than 80 per cent of workers outside the oil boom provinces, average real wages have grown just two per cent since that period. Median wages, which are not dragged upwards by the disproportionately large increases in wages for the wealthy, have seen just 0.4 per cent growth outside the oil provinces. This is stagnation loud and clear (see this earlier post for a closer look at the numbers). (more…)