As Nova Scotia raises its minimum wage to $16.75, the Canadian Federation of Independent Business is calling for the province to return to a once-a-year increase model.
On Wednesday, the province increased its minimum wage by 25 cents, making it the eighth increase in the last five years.
According to the government, it follows the unanimous recommendation of the Minimum Wage Review Committee, which includes representatives of employees and employers.
With another 25 cent increase set for October, the CFIB said it is recommending the province return to a once-a-year increase and link minimum wage increases to the current percentage of the median wage.
“Increasing wages twice a year is not how businesses operate across the province,” said Frédéric Gionet, CFIB director for Atlantic Canada. “The continuous pressure applied on the wage scales is present in Nova Scotia, with 59 percent of business owners continuing to report wages as a major input cost constraint.”
Gionet said if the province continues on with its current model, it risks pushing its minimum wage to median wage ratio toward levels seen in countries such as Colombia, Costa Rica, Chile and Mexico.
Meantime, the Nova Scotia Federation of Labour said workers in the province are going another year without a clear path to a living wage.
“While it’s true the minimum wage is going up, this increase is in no way sufficient to address the skyrocketing prices facing workers in our province,” said Melissa Marsman, president of the NSFL. “When workers cannot afford food, rent, gas, or heat, that is a sign of a real affordability crisis.”
The Canadian Centre for Policy Alternatives recently calculated a living wage at $27.60, which is $10.85 greater than the current minimum wage.