Debates of February 2, 2011 (day 31)

Date
February
2
2011
Session
16th Assembly, 5th Session
Day
31
Speaker
Members Present
Mr. Abernethy, Mr. Beaulieu, Ms. Bisaro, Mr. Bromley, Hon. Paul Delorey, Mrs. Groenewegen, Mr. Hawkins, Mr. Krutko, Hon. Jackson Lafferty, Hon. Sandy Lee, Hon. Bob McLeod, Hon. Michael McLeod, Hon. Robert McLeod, Mr. Menicoche, Hon. Michael Miltenberger, Mr. Ramsay, Hon. Floyd Roland, Mr. Yakeleya
Topics
Statements

QUESTION 357-16(5): EVALUATION OF IMPACT OF MINIMUM WAGE INCREASE

Thank you, Mr. Speaker. My questions today are addressed to the Minister of Education, Culture and Employment.

On February 11, 2010, the Minister announced the first increase to the NWT’s minimum wage since 2003. I was thrilled to hear that announcement and I’m sure many of our residents were as well. In the Minister’s statement that day he said that on April 1, 2010, the rate would increase to $9 an hour. So my question to the Minister: since then, since April 1, 2010, has the department done any evaluation of the impact of this increase in our minimum wage? How have businesses responded? How have workers and their unions responded? Thank you.

Speaker: MR. SPEAKER

Thank you, Ms. Bisaro. The honourable Minister of Education, Culture and Employment, Mr. Lafferty.

Mahsi, Mr. Speaker. Since we introduced the minimum wage increase we have had a deliberation with the potential business partners and also the communities. As we legislated in the House, April 1, 2010, $9 and then April 1, 2011, to $10, those are discussions that we had. There were a lot of positive reactions on these initiatives. We haven’t heard much on the negative side of the minimum wage increase, but we heard some business sectors in Yellowknife and surrounding communities that had some nominal impacts where they had to hire certain individuals on those wages. But those are the areas that we continually monitor within my department. We will continue to work with the Members to inform them of what is happening with our minimum wage increase. Mahsi.

Mr. Speaker, thanks to the Minister for that response. He mentioned that there will be an increase to the minimum wage again on April 1st of this year. I am very glad to hear that there is no change in that plan. In his comments last year, the Minister also stated in his statement that the department is considering ways to implement future increases that will see regular and reasonable increases linked to other economic factors such as inflation and the cost of living. I would like to know, relative to regular and reasonable increases linked to cost of living, what is the status of this work? Where is the department at on this? Thank you.

Mr. Speaker, the Member is correct; those are the areas that we, as a department, work with other interdepartmental as well on the stats collected on statistics. Not only that, Mr. Speaker, the information that we receive will be helpful as we move along. Based on the consumer price index and the cost of living, we continue to monitor that. Once we increase the minimum wage in this fiscal year, the following year, we need to find ways of how much we can increase or status quo at that time. This is an area that we will need to discuss further within my department and with other departments as well. Mahsi.

Mr. Speaker, thanks to the Minister. I guess I have to take from his answer that work has not started yet on this aspect of future increases to minimum wage. I would like to know from the Minister, he is talking about talking to other departments and getting information from statistics. I think that is wonderful. We should be doing that, but what kind of work needs to be done cross-departmental in order to determine future minimum wage increases tied to the cost of living? Thank you.

Mr. Speaker, we need to gather information from other departments and business sectors as well. We need to hear from the people. We have done that in the initial stages. We collected information and data from them and heard their concerns and heard their ideas, as well, and suggestions. That is how we came forward in the House here. That is important information that we will continue to collect from the general public and also interdepartmental areas as well.

Speaker: MR. SPEAKER

Thank you, Mr. Lafferty. Your final, short supplementary, Ms. Bisaro.

Mr. Speaker, thanks to the Minister. I appreciate that the department is doing consultations. I think that is valid. I did forget to say to the Minister that I appreciate that there has been some ongoing evaluation of the effect on businesses and workers. It is also nice to know that there is a positive response. I would like to know from the Minister when the House or when I could expect some kind of an idea as to how future minimum wage increases will be determined. When can we expect the results of the work that he is talking about? Thank you.

Mr. Speaker, I have to follow up on a specific or detailed information what the Member is referring to. I will get back to Members on the status of our findings and provide that information to the Members. Mahsi.

Speaker: MR. SPEAKER

Thank you, Mr. Lafferty. The honourable Member for Kam Lake, Mr. Ramsay.