Quebec Labour Minister Jean Boulet announced Wednesday that the general minimum wage in the province will increase to $15.25 an hour as of May 1.
The current minimum wage stands at $14.25.
The $1 increase is being touted as the largest increase, in current dollars, the province has ever seen.
“This corresponds to an increase of 7.02 per cent and this is the highest percentage increase since 1995,” Boulet said during an afternoon press conference in Quebec City.
The minister said the aim is to help fight or reduce social inequalities in the province by improving the purchasing power of low-income earners and encouraging participation in the labour market.
Boulet said the wage hike will benefit 298,000 workers, including 164,000 women.
Those who earn tips will see their wages increase by $0.80 an hour to $12.20.
While Boulet said the increases were “balanced” and “responsible” critics say it’s too little too late.
“A minimum salary of $15 an hour, we were asking for that back in 2016!” said Québec solidaire finance critic Alexandre Leduc in a written statement.
Leduc went on to say that in order for Quebecers to be able to get by and live with dignity, a minimum wage of $18 an hour is necessary.
Coalition Minimum $18 — a group made up of several Quebec unions and anti-poverty groups — agrees with Leduc.
It believes that with inflation stuck at around seven per cent, a one-dollar increase will do little to alleviate poverty.
Both Leduc and the coalition pointed out that even Premier François Legault admitted, “it’s difficult to make ends meet at $18 an hour, especially for those with children.”
The premier made the comments during an exchange with Quebec solidaire co-spokesperson Gabriel Nadeau-Dubois at the National Assembly in December.
Boulet defended the increases, saying several criteria were taken into consideration including the ability of businesses — mostly small and medium-sized — to pay their employees amid rising interest rates and uncertain economic times.
“At $18, it would be extremely difficult for the small- and medium-sized businesses to make sure that they can keep doing business,” he said.
He also added that a higher minimum wage could trigger a series of layoffs and lead to a rise in school dropout rates, with students tempted by the promise of higher wages.
Additionally, Boulet said the government made sure the new minimum wage is the equivalent to 50 per cent of the average wage of all Quebec workers.
Leduc, however, argued several provinces have already exceeded the 50 per cent ratio without it affecting their economy.
“It’s an artificial ceiling,” he said, adding the only bright spot is that the government has the ability to go ahead with a second increase later in the year.
— with files from The Canadian Press
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