Sask. Federation of Labour calls on province to roll-back utility hikes, raise minimum wage

The Saskatchewan Federation of Labour (SFL) is calling on the province to roll-back utility hikes and raise the minimum wage, as inflation continues to negatively impact the cost of living for workers.

The federation wants to see these changes in the 2023/2024 budget, which will be released on Wednesday.

SaskPower raised utility bills by an extra three per cent as of Jan. 1. This was in addition to a four per cent increase in September 2022. There's also an additional four per cent increase slated for this coming April.

"Increasing the cost of utilities in our province at a time when there's a cost of living crisis is pretty deplorable, I think. Not taking into consideration at all that workers have been struggling for some time now," said Lori Johb, president of the SFL.

Meanwhile, Saskatchewan's minimum wage is the lowest in Canada at $13.00 per hour. That amount is slated to rise to $14.00 on Oct. 1 this year, then $15.00 in October 2024.

Johb said that isn't enough.

"I think we need to see it go to $15.00 an hour right now and then continue to increase," she said. "We know the cost of living wage in two of our major centres in this province is well over $17.00 an hour."

Johb said that when workers do not earn decent wages, they can't put money back into the Saskatchewan economy.

"In many cases, not only can't workers make more than minimum wage, they can't work full time hours. So they're [often] working more than one job to make ends meet, and they're still stopping at the food bank on the way home."

Labour shortage vs. wage shortage

In 2022, the Saskatchewan government said the province's labour shortage — especially in the hospitality, construction and agriculture sectors — was the major economic issue stalling growth in Saskatchewan.

"I don't believe we have a labour shortage. What we have is a wage shortage," said Johb.

"If people were getting paid a decent livable wage, that would be an incentive to stay here."

Johb said if Saskatchewan residents were paid more, they would feel more appreciated, which would lead to a decrease in turnover and an increase in employee loyalty.

"We hear our premier and others talk about the job growth in our province. But when you really boil it down, you know that these are not full-time jobs. These are not the kind of jobs that people can make careers out of," said Johb.

"You never hear them talk about how many new workers [they have] or how their workforces are growing. They only talk about how many jobs there are."

Consultation 

Johb said she is always hearing from Saskatchewan workers about how hard it is for them to make ends meet. She said the province should be listening closely to these people.

"I think that there are some governments that do a really good job of consulting with the constituents and the people most affected. I believe the current government that we have in Saskatchewan has no interest in hearing from anyone else."

Johb said that during some of her consultations with the province, she felt financial decisions had already been made prior to the meetings.

"We need to see real consultation. They might be surprised at what they would learn if they actually talk to them, people that do the work."

Government response

CBC reached out the Government of Saskatchewan for comment. In an emailed statement, the province said that it is "important that we are balancing the needs of employers and workers when we make adjustments to the minimum wage."

The province said that by increasing the minimum wage over a three-year period, it is ensuring that life is affordable for low-income workers. It said this system also provides employers with the ability to plan for those wage increases effectively.

"Minimum wage is just one of many instruments used to help low wage earners benefit from a strong and growing economy," said the government.

The province said it approved SaskPower's 2022 and 2023 rate application based on the Saskatchewan rate review panel's recommendation.

"Prior to 2022, it had been four fiscal years since the last rate adjustment, and SaskPower requires additional revenue to continue ensuring reliable, sustainable power for customers. Saskatchewan also continues to maintain the second-lowest cost utility bundle in Canada."