But NDP, labour group dissatisfied with rate's upward adjustment
Minimum wage earners in Nova Scotia will see a slight bump in their pay starting April this year.
The provincial government has announced the base pay rate will increase to $15.20 per hour on April 1, up from the current rate of $15 per hour.
In adjusting the minimum pay rate, the government started using the formula previously recommended by the Minimum Wage Review Committee. The committee, which has equal employee and employer representation, filed its 2023 report with the Minister on December 11.
Starting this year, the rate is to be adjusted by the national consumer price index “plus one percentage point from the minimum wage rate set the preceding April,” according to the government. “That means an increase this year of 4.7 per cent from the April 2023 rate.”
“This year has been very difficult for many Nova Scotians – business owners and workers alike,” said Jill Balser, minister of labour, skills and immigration. “I am grateful to the Minimum Wage Review Committee for putting forward the perspective of both employers and employees so we can ensure a balanced approach to increasing the minimum wage.”
Several Canadian provinces and territories – including New Brunswick, British Columbia and Prince Edward Island– also announced minimum wage increases last year. Nunavut has the highest minimum wage in Canada at $19 per hour, effective Jan. 1.
‘Gap between poverty and a living wage’
Some stakeholders, however, expressed disappointment about the $0.20 increase to Nova Scotia’s minimum wage.
“The minimum wage increase from $15.00 to $15.20 is not nearly enough to bridge the gap between poverty and a living wage,” said Danny Cavanagh, Nova Scotia Federation of Labour (NSFL) president. “Workers are grappling with the escalating costs of housing, food, and basic amenities. The current minimum wage does not realistically align with these costs, leaving many Nova Scotians struggling to afford their basic needs.”
“Nova Scotia workers deserve more than a twenty-cent-an-hour increase from the Houston government,” said the Nova Scotia New Democratic Party (NDP) via social media platform X. “The minimum wage is so far behind the cost of living increases people are facing that this will do little to make a real difference. It's time for a living wage in Nova Scotia.”
Canadian workers are not keeping up with their U.S. counterparts when it comes to salaries, according to a previous report from the Fraser Institute.
Cavanagh also pointed to a recent report detailing the wage gap between chief executive officers and the average workers in Canada.
“The disparity is glaringly obvious when you consider that at 9:27 AM on Jan. 2, the average top Canadian CEO had already made the average Canadian worker’s annual salary,” he said.
“According to the latest report by the Canadian Centre for Policy Alternatives (CCPA), Canada’s top 100 CEOs were paid a whopping $14.9 million, on average, in 2022. This is an all-time high and bested the previous record of $14.3 million, which was set last year. This is more than double what CEOs were paid in 2008—$7.4 million—when the CCPA started publishing this data set.”
Calls for comprehensive review of wage policies
The NSFL proposed that the Minimum Wage Review Committee should consider a comprehensive review of the province’s wage policies, “including the introduction of a ‘Living Wage Index’”.
“This index, which should be adjusted annually, should reflect the real costs of living in Nova Scotia, including housing, food, transportation, and other necessities and would be a game-changer for our workforce,” said Cavanagh.
“It would ensure that wages are equitable and reflect the true cost of living. It’s about fairness and dignity for Nova Scotia workers. They deserve to earn not just a minimum wage, but a living wage.
Late in 2021, Nova Scotia Premier Tim Houston apologized for seemingly implying that minimum wage jobs aren’t "real jobs". Houston made the comments when he was asked about the $12.95 minimum wage in the province by former NDP Leader Gary Burrill.
