More needs to be done to close the living wage gap

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In continuation of British Columbia’s increasing minimum wage, there will be a 3.9 per cent pay bump for minimum wage workers in the province starting June 1. 

This increase is said to be parallel with the province’s average rate of inflation. Minimum wage workers in B.C. will see an increase of $0.65 cents per hour, changing from $16.75 to $17.40. According to Living Wage for Families BC, the living wage in Metro Vancouver is $25.68. 

The difference between minimum and living wage is still a long bridge to cover. However, any decision to increase the minimum wage helps an estimated 1.5 million workers in Canada, 50 per cent of which are between the ages of 15 and 24 and composed of students and non-students, according to a 2018 report by Statistics Canada. 

The wide gap between minimum and living wage means every cent counts for minimum wage workers who often work multiple jobs to survive from paycheque to paycheque. These workers make choices like choosing between overcrowded housing and essentials daily, so an increase in wages will help them reduce their struggle. International students juggling between high tuition fees, multiple classes, and several jobs to get by are also expecting to find some relief from the increase. 

Labour Minister Harry Bains proposed to introduce a tie between increasing minimum wage to match the rate of inflation each year. This proposal may be of benefit to minimum wage workers, but in a statement from Surrey Board of Trade President and CEO Anita Huberman, they find the uncertainty related to wages will increase due to an unstable inflation rate. 

The decision to increase minimum wage may come as an added cost to businesses, directly to ones paying minimum wage workers and indirectly to those who pay above minimum. The cost of doing business in B.C. has also been increasing, and decisions like these only add to the already long line of business costs, which is why a balance between wages and cost of business should be maintained. This could be brought into action by cutting certain taxes that businesses must pay to increase financial stability. 

While there’s still a need for an even larger minimum wage increase to close the living wage gap, the need to maintain businesses sustainability is also required. A more balanced decision on the government’s end would be expected to maintain harmony between employees and employers.

Aside from this, more measures must be planned and put into action to close the wage gap in the coming years. This is not only essential for a better income, but it will also have a direct effect on the general living conditions and overall well-being of British Columbians.