Minimum wage increases in Manitoba

Manitoba's minimum wage increased Tuesday.

The beginning of October meant the wage grew 50 cents to $15.80 per hour.

The increase is part of a formula set out by provincial law that ties minimum wage increases to the rate of inflation during the previous calendar year.

"That just means as the cost of goods and services that we buy, like housing and groceries go up, the minimum wage goes up by the same overall percentage," said Jesse Hajer, an economics and labour studies associate professor at the University of Manitoba.

However, the Canadian Centre for Policy Alternatives (CCPA) said the new rate is far from what it actually costs to live in Manitoba.

A living wage of $19.21 an hour would cover those basics and allow workers to be able to meet their basic needs," said Molly McCracken, the director of the CCPA.

If the minimum wage goes any higher, it could be bad news for local businesses.

"Sixty-nine per cent of our Manitoba small business members said that they have had to increase prices as a result of minimum wage increases over the last two years. So it does create challenges. It makes things more expensive," said Brianna Solberg, the provincial legislative affairs director at CFIB.

She noted it would make for an inflationary cycle that can be hard to break.

"We've been calling on government to make sure that they do their part and not place the burden solely on business owners."

Manitoba's Labour and Immigration Minister Malaya Marcelino said the province is working on it.

"Our government is doing our best to try to keep inflation rates really low," she said.

Manitoba is on the lower end of the minimum wage spectrum throughout the country.

Saskatchewan was the lowest at $14 an hour, but it was bumped up to $15 on Tuesday to tie Alberta for the lowest in the country.

B.C. has the highest rate in Canada at $17.40.