Advocates say Sask. minimum wage increase isn’t enough to combat poverty

Saskatchewan is set to increase the minimum wage in the province to $14 per hour as of Oct. 1, but some organizations say that’s not enough to combat increasing poverty.

Peter Gilmer is an advocate with the Regina Anti-Poverty Ministry and said the living wage in Saskatchewan currently sits around the $18-$19 an hour range.

“We’re an awfully long way from what it would take for low income workers and families to meet their basic needs,” Gilmer said.

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Saskatchewan’s increase in minimum wage stems from a plan back in 2022 to raise it incrementally until it reaches $15 in 2024.

The Oct. 1 increase will bring the minimum wage rate up from the current $13 an hour, but won’t pull the province out of having the lowest minimum wage in Canada.

He was concerned about the province continuing to have the lowest minimum wage in the country, saying over the course of several years Saskatchewan has either had the lowest minimum wage or the second lowest.

“We’re disappointed that’s the competition that we’ve been in.”

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He pointed to housing costs rising, inflationary costs increasing, as well as paying more for basic utilities, saying people making minimum wage are having to pay more for less.

“We don’t think that this increase in the minimum wage is going to make the difference.”

He said we need to be looking at much more aggressive legislation to increase minimum wage, noting there are much more positive implications that come with that increase.

“While it’s often argued that they will cost jobs, the reality is that the empirical evidence suggests that when you put more income in the hands of low-income workers, and actually low-income people in general, all of that money gets recirculated in the economy, so it’s actually good for job creation.”

The Saskatoon Poverty Reduction Partnership (SPRP) put together a report card showing poverty levels and associated issues in Saskatoon, saying that about 16 per cent of people in Saskatoon live in poverty.

SPRP Indicator Report SEPT 25 2023

Across the province 18.4 per cent of people live in poverty, with the national average sitting at 15.6 per cent.

That number jumps when looking at children in the province. About 19.5 per cent of children in Saskatoon face poverty, with that number sitting at 24.2 per cent provincially.

The report card showed that the cost of food increased by 5 per cent in 2022, and rose by another 7 per cent in 2023.

It said about one in five people face food insecurity.

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SPRP said two out of three neighbourhoods in Saskatoon have homeless encampments, adding that about one in 12 people are in need of core housing.

Life expectancy in the province has also dropped, lowering to 78.48 years from 80.24.

The report also delved into drug-toxicity related deaths, noting the number of deaths rose to 350 in 2022, almost doubling from the 180 deaths in 2019.

Looking at childcare, the report card said one in five kids have access to licensed and financially subsidized childcare in the city, leaving out just over 19,000 kids between the ages of 0-6.

Saskatoon’s crime severity index was also looked at, noting that the city saw a 7.74 per cent increase in the index since last year.

Labour Relations and Workplace Safety Minister Don McMorris pointed to other supports for wage earners in the province on Tuesday, including the basic personal tax exemption, child tax credit and the Saskatchewan Low-Income Tax Credit.

“Saskatchewan has a strong, growing economy and increasing the minimum wage is just one of many mechanisms used to take care of Saskatchewan workers and create more prosperity for everyone,” McMorris said.

The province said personal taxes were among the lowest in the country, claiming exemptions have resulted in over $760 million in savings for residents.