New Brunswick’s minimum wage is the lowest in the Atlantic and one of the lowest in Canada, just above that in Saskatchewan. It’s always embarrassing to be at the bottom of such a ranking. But contrary to appearances, things aren’t looking so bad in our province. A significant catch-up process has been achieved in recent years.

New Brunswick’s minimum wage has changed in the past depending on the mood of the provincial government. This is done taking into account the pressure from employers who want to limit the extent of the increases and the pressure from organizations fighting against poverty that take the opposite position.

Comparisons between federal states also influence decision-making. In April 2021, Prime Minister Blaine Higgs embarrassed himself by ordering a $0.05 increase in the minimum hourly rate. A few months later, Saskatchewan increased its rate by $0.36 per hour. Not only did New Brunswick fall to the bottom of the Canadian rankings, but the gap to Nova Scotia, Prince Edward Island and Newfoundland and Labrador also widened.

A few months later, the government caused a surprise: it announced two increases of $1 an hour, in April and October 2022. Generous increases, but also a brutal shock that was poorly received by the business community. They were enacted in response to a significant decline in voting intentions towards Blaine Higgs’ Progressive Conservatives.

Meanwhile, other provinces have increased pay for the poorest workers, leaving New Brunswick once again falling behind.

However, the situation has nothing to do with the situation in 2021. At $14.75 per hour, our minimum wage is very close to that of the three other Atlantic provinces ($15) and even to that of Alberta ($15). Quebec ($15.25) and Manitoba ($15.30).

This ranking fluctuates constantly. The provinces at the bottom of the field end up raising the minimum wage and moving up the rankings. Those who are overtaken then commit to catching up, as New Brunswick did last year. The wheel keeps turning.

There is also a problem: the lack of consensus about the goal to be achieved.

Groups like the Common Front for Social Justice have advocated for $15 an hour in the past. After meeting that goal, most provinces are now charging $20 an hour. This is equivalent to the living wage in New Brunswick’s major cities, according to a study by the Human Development Council, a Saint John-based organization.

We believe the four Atlantic provinces would benefit from an identical minimum wage.

The hourly rate could be set by a commission. This would create a formula that takes into account a variety of factors, including the rate of inflation (particularly in housing, gasoline and food), the average salary in the territory, and the average minimum hourly rate in certain provinces.

This method would have the advantage of depoliticizing the process. The increases would be determined following a transparent analysis by an independent commission and would not be an election promise and would be granted according to a pre-determined timetable.

New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador have relatively similar economies and populations.

There is no reason for deviations.

An Atlantic Minimum Wage Commission would have the merit of adding some seriousness to a decision-making process that focuses on the policy needs of governments and the actions of neighboring provinces. It would provide the business community with greater predictability by avoiding major upheaval while preventing a decline in compensation compared to the rest of Canada.

The minimum wage is currently virtually the same in the four Atlantic provinces. Now is the ideal time to start discussing this topic.