April 8, 2008
Minimum Wage Increases: Should More People Get a Boost?

I read in the newspaper today that the minimum wage in Nova Scotia will be going up May 1st, from $7.60 to $8.10 per hour. The $7.60 we currently receive is the second lowest in the entire country, and even at $8.10 we will be lower than 7 other provinces, assuming other provinces don’t increase their minimum wage. I hate to reinforce the stereotype that we, in the Atlantic provinces, are poor (we round out the bottom 4, in terms of minimum wage) but there’s no dancing around the fact that $7.60 (and $8.10) per hour is not a living wage. It’s an existing wage. It’s difficult for anyone to have a fulfilling life when 40 hours per week only yields $304 (BEFORE taxes).

My main gripe isn’t even how low the minimum wage is or that the increase still doesn’t lead to much of an actual difference. What I couldn’t help but wonder, considering I do have another job at which I earn a tad bit more than minimum wage, is whether those people in MY situation will also get a raise. I understand the intention is to ensure that people earning the absolute minimum can get a boost, but even DOLLARS more than our minimum wage is still not enough for most people to live happily on.

This is my reasoning. Let’s say that a person earns 75 cents more than minimum wage (which equates to approximately 10% more than our current $7.60). If the minimum then increases to $8.10, should that person continue to earn 75 cents (or 10% more)? The 10% would then be 81 cents, and therefore the better deal for the employee. Either way, I imagine that employee would take either. And I should know, I am one of them. If not, that sounds to me like that person was once worth 75 cents more than minimum wage, but now someone else can walk in and make almost as much as that person - BY LAW. So after working for a company for a while and learning how to do the job, one would think that an employee might be worth even more than the original 75 cents above minimum wage rather than a mere quarter above a brand new employee earning the NEW minimum wage.

I know what some of you are thinking – where is the cut-off right? If someone making 75 cents above the old minimum wage wants to get bumped, then where does it end? $1 above the old minimum? $2? Do we just give EVERYONE a boost? That doesn’t seem to make sense. I do think, however, that a bump is in order for anyone who worked a job where it was possible for them to have earned minimum wage, but due to experience or past performance they were given higher than THAT minimum wage. Otherwise, seems like a person who doesn’t know the job is worth almost as much as someone who has been with the company for a while.

Thoughts? I know many of you reading this work, or have worked, for minimum wage or just above it. Let me know what you think.

Comments (6)

My first job: $5.15/hour x 40 hours per week. Calculate that! :P After 3 months I made it to 5.50. Than after a few years I was earning a solid 6 *yayness* This was 1996-1998 of course, but only 10 years ago.

There is a real issue with wages in Nova Scotia in comparison to other provinces. Just the fact that I made $12/hour at a "good" job downtown Halifax 2 years ago (something that could have totally become a career) and jumped to $29/hour after moving to Ontario says a lot. I was still the same person with the same experience and education...!!! In Halifax there is so much competition for jobs (I am guessing due to the ratio of people with actual educations - too many - and the # of jobs available - not enough) that employers can keep the wages lower...people are more desperate so they accept the lower wage because someone will just creep right in behind them to snatch the job up. I took a look at some jobs in Halifax very similar to what I do here in Sudbury and there is about a 10k difference per year. And the cost of living is slightly higher in Halifax than where I live now. How much sense does that make?

But money truly isn't everything. I would be happy just to find the "balance"...be back home and make a wage I can live on. It just sucks to know that if I move back home I have to settle for less.

rule

All great points Michelle. It really is sad that we settle for so much less than we are actually worth in Nova Scotia (or anywhere, for that matter). Like you say, you moved and your "worth" jumped up significantly and yet you were the same person. And while it IS true that money isn't everything, and doesn't necessarily make a person happy...it certainly can help relieve stress. There are so many skilled people here who just are not getting paid what they deserve. Receiving what you feel you're worth is a GREAT feeling, that many people just don't get to experience for a long time.

rule

I think the issues here that need to be addressed are the issues societal issue of poverty we face here in Nova Scotia, as well as the persistent trend of out-migration to other province. Not increasing the minimum wage decreases the chance that even unskilled labourers will stay in the province, when they can seek out higher wages in other problems.

I know no one wants to think of themselves as "poor" but the reality is that in this province as well as nation-wide, the there is a trend toward higher rates of poverty, as well as increased depth of poverty for the working poor. Although you pose the question, where does it end? I believe that every person has the right to earn a living wage, and this supercedes the needs of businesses who are paying workers much less than is economically sustainable for the working population. Minimum wage is expected to increase to $9.65/hr by 2010, after which adjustments will be make according to the Consumer Price Index.

I do think experienced workers who make slightly above minimum wage should get the "boost" they deserve, after toiling away at a job for who knows how long to eek out a raise. In my experience, I am currently working at a job where I make $7.70/hr, after working there for a year, because raises are based on hours worked, rather than time with the company. So, if they take away my hard earned 10 cents I will be very unhappy.

That's my senseless rant.

rule

Another thought I had after reading your response...

It seems like in NS companies will hire the person who will take the least pay (usually the less skilled worker) even when presented with better choices. Here it seems the emphasis is on the quality of the hire. So, they will hire what seems like the better worker and offer them more pay to ensure acceptance and leave the OTHER guys who would accept less as just-n-casers.

quality vs. quantity $

I am not generalizing of course. I am sure there are other parts of Ontario that function in the same way as Halifax. And my point of view is a bit skewed because I did go from private to public sector as well.

Wow, rambling. This is one of those issues that really hits home for me is all. I guess I am feeling anxiety because I want to move home by the end of the year and there will be so much unknown alllll over again!! I would hate to be stuck in the same situation when I come back. But it could very well happen :/

rule

Thank you both for your thoughtful responses. I love getting a dialog going. I will respond more thoroughly soon, but for now I am off to enjoy the beautiful weather that has been hiding from us in Nova Scotia. Gotta catch it while I can. Thanks again for contributing. I appreciate it.

rule

Great comments on this topic.

Carol brought up "the working poor" and I'd like to get into that a bit more. This group is somehow forgotten. We take care of our elderly, our happicapped and our extreme poor, but we really neglect the minimum wage worker. Students making minimum is one thing, but what about the single mother trying to survive on $8 an hour? She'd be better off (money-wise) on welfare!!

rule

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