A three-year plan to increase the minimum wage will provide additional supports for Prince Edward Island's lowest income earners and ensure the province's wages remain in-line with neighbouring provinces' minimum wage rates.
The Honourable Wes MacAleer, Minister of Community Services and Attorney General, announced today that the government approved the recommendations of the Employment Standards Board to raise the minimum wage, in three steps, from $5.40 to $6.00.
"Our government cares deeply about the wages of low income earners and fully endorses the recommendations of the Employment Standards Board to provide additional supports for lower income Islanders," said Minister MacAleer. "We are concerned about those with low incomes and are striving to give them more support."
Ab Ferris, Chair of the Employment Standards Board, notes the Employment Standards Act requires a review of the minimum wage on an annual basis. "The board, which is comprised of equal representation of employees and employers, provides objective advice to government based on a number of criteria," says Ferris. "Determinant factors in recommending a minimum wage include the social and economic effects of the minimum wage, and the cost of living increase since any previous order affecting the cost of necessities of life - including housing, food, clothing, transportation, and health care and supplies." In addition, Ferris says full consideration is also given to economic conditions in the province and the concept of reasonable return on private investment.
Minister MacAleer emphasizes this objective input is vital to set an appropriate minimum wage that protects low income earners while advancing the PEI economy in comparison to other Atlantic Canada provinces.
"We have a duty to maintain a sound fiscal house while providing more supports to people in need, particularly younger wage earners," says the Minister. "Today's decision, which is effective January 1, 2000 ensures that PEI's minimum wage rate is in-line with Atlantic provinces and is part of a three-year plan to provide assistance to low income earners and their families."
The province's minimum wage will increase in three increments - a 20 cent increase on January 1, 2000 - a 20 cent increase January 1, 2001 - and a 20 cent increase effective January 1, 2002. "This three-year rate schedule," said Minister MacAleer, "permits the business community to know in advance the intentions of government and enables them to use this information when planning for the future."