The Real Story on Wages in British Columbia

April 20, 2007

The BC NDP is promoting legislation to increase the minimum wage to $10.00 per hour. The Real Story on Wages in British Columbia shows the NDP's plan couldn't come at a worse time for both employees and small business alike.

The BC Liberal Plan is Creating Jobs and Lowering Unemployment

  • Job creation is at a record high – 371,400 new jobs created since December 2001, 85% full-time.
  • Unemployment is at record lows – 3.9% province-wide compared to 7.7% in 2001.
  • Youth unemployment is down over 47% – 7.3% today compared to 13.9% in 2001.
  • Unemployment among women is down 40% – 4.1% today compared to 6.8% in 2001.

Because of Our Plan, Wages are Going Up

  • B.C. already has the highest minimum wage amongst all provinces at $8.00 per hour.
  • British Columbians' average hourly wage is $20.41 – 2.5 times the minimum wage & 3rd highest in Canada.
  • The average hourly wage for youth is $12.31 – 1.5 times the minimum wage.
  • The percentage of people earning minimum wage is going down every year – 5.6% in 2005 compared to 7.7% in 2002.

The Facts Prove It – The NDP Plan Will Hurt Jobs, the Economy

  • According to the BC Chamber of Commerce, the NDP's proposed increase will result in over $450 million in new costs – the NDP's proposed small business tax cut to compensate for the rise would only replace 15% of those costs.
  • A study commissioned by the Government of Ontario shows a 25% minimum wage increase will result in a 15 to 30% reduction in teen and youth employment. In BC, that would mean a loss of tens of thousands of jobs for young British Columbians.

The NDP Opposed Tax Cuts and Programs to Help Working Families

The NDP voted against every measure to help working families such as:

  • Tax reductions – due to changes in 2001, 2005 and 2007, personal income taxes are the lowest in Canada for those earning up to $108,000 annually; 250,000 of our lowest earners pay no income taxes, average 70% for those earning under $20K, today those individuals pays $567 less in tax.
  • Rental Subsidy – monthly rental supplements for over 20,000 families earning $28,000 or less.
  • MSP Relief – Over 200,000 people paying less, with low income families paying no premiums at all.
  • Fair Pharmacare – reduced premiums for 280,000 people including no deductibles for those earning $15,000 or less.
With all the progress we've made in B.C., why would we want to do anything that could reduce jobs and potentially hurt our province's success? The NDP plan for the minimum wage just doesn't add up.