Mahsi, Mr. Speaker. Mr. Speaker, the Department of Education, Culture and Employment would like to announce that starting on April 1, 2010, minimum wage in the Northwest Territories is going up.
This is the first increase to the minimum wage in the Northwest Territories since 2003. Despite the high cost of living, the Northwest Territories’ minimum wage rate fell behind the national average and has not kept up with increases in other costs like rent, groceries and fuel.
The Department of Education, Culture and Employment is phasing in the changes over the next two years. In 2010 the rate increases to $9 an hour and effective April 2, 2011, the rate goes up to $10 an hour.
During the development of the Employment Standards Act and Regulations in 2008, we had very few comments from workers and businesses in the Northwest Territories about minimum wage. But as the economy began to falter in late 2008 and 2009, we began to hear that it was time for an increase. It is important that people are able to earn sufficient wages to be independent, while contributing to the economic activity of the Northwest Territories.
Mr. Speaker, the department contacted more than 80 employers during the summer of 2009, to learn the potential impacts of an increased minimum wage.
Overall, most employers felt the existing rate of $8.25 an hour was not enough. In fact, most employers are already paying more than the minimum wage, to recruit and retain skilled workers.
There are some businesses that will have to adapt to the increases. The hospitality and service industry appear to be the area that may be most affected. The department is confident the two-phased approach will ease the financial burden on employers in these sectors.
Mr. Speaker, to inform employers and employees on the minimum wage increase, the department is launching a public awareness campaign across the Northwest Territories in the coming weeks.
Moving forward, 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 cost of living.
I trust that workers across the Northwest Territories welcome this change and will continue to contribute to a strong northern economy. Mahsi, Mr. Speaker.
