Manitoba's current minimum wage isn't enough for many people to live on, new report says

Recent increases to the minimum wage don't go far enough for Manitobans struggling with the rising cost of groceries, monthly rent and transportation, according to a new report.

The report by the Canadian Centre for Policy Alternatives calls on the provincial government to increase the minimum wage of $15.30 to reach what it calls a "living wage" and adopt an annual framework to accommodate people's basic needs. 

A living wage is defined as the rate at which a household can meet its basic needs, once government transfers such as the Child Tax Benefit have been added, and deductions such as income taxes have been subtracted.

"We're seeing growing levels of poverty in our community because living wages are too low," said Niall Harney, the senior researcher at the centre.

The report calculated the living wage in three cities.

In Winnipeg, the living wage has risen to $19.21 an hour, an increase of 87 cents or five per cent from last year. 

In Brandon, the living wage increased to $15.69 an hour, three cents higher compared with 2022, and in Thompson, the wage has risen to $17.48 per hour, 85 cents higher than last year's data. 

The difference among the three cities comes down to the cost of housing. 

In Winnipeg, the wage calculation assumes a family with two children and parents working full-time could afford the cost of food up to $1,022 per month, shelter up to $1,813 per month, transportation costs up to $611 per month and child care up to $413 per month.

The updated living wage does not cover the costs of credit card, loan, debt or interest payments; saving for retirement or children's education; owning a home; the cost of caring for a disabled, seriously ill or elderly family member; recreational activities; or a cushion for emergencies. 

A single parent would need to make a living wage of $25.46 in Winnipeg and $25.35 in Thompson. 

In Brandon, the report says, a single parent would need only $13.53 an hour, because that family would qualify for Rent Assist and child-care subsidies."

Minimum wage keeping workers in poverty: CCPA

Manitoba's legislated minimum wage — earned by approximately 30,000 workers in the province — increased to $15.30 an hour in October 2023 from $11.95 per hour in October 2021. 

The report's authors want the minimum wage raised to $19.21 per hour, saying their research shows the current rate keeps workers earning the bare minimum in poverty. 

A 2023 report from Winnipeg Harvest said approximately 40 per cent of its clients accessing a food bank are employed, a 66 per cent increase from last year. 

"If someone is working full-time, they should not be living in poverty," said Jesse Hajer, a professor in economics and labour studies at the University of Manitoba.

Hajer said tax cuts make little to no difference for families at the living-wage level, while provincial benefit programs such as Rent Assist and the child care subsidy have eligibility thresholds that disqualify families. 

Harney said he would like a living wage to be gradually phased in and communicated to businesses so they can make plans to pay their workers more money. 

Credit union commits to living wage

Assiniboine Credit Union is making the commitment to compensate its workers, including vendors who do work including providing cleaning services at the building, using the rate the CCPA has determined is required to meet people's basic needs. 

Brendan Reimer, the credit union's strategic partner in values-based banking, said it's one of the ways employers can support people's financial health, while also enhancing employee attraction, retention, engagement and productivity.

"When people are looking for where to work, especially at entry levels, it sets you apart, and it's a competitive advantage to be able to offer a living wage when others in the market might be offering minimum wage," Reimer said. 

"And when you're working for a company that values your labour and values your financial health as an employee, that means something."