It's been in the news recently (well a month or so ago) that BC now has the lowest minimum wage of all the provinces (link). Some say this is an embarrassment to the province, but do they work?

Those against them say that they are pointless or counter-productive (too low and employers just pay the market rate, too high and they reduce or outsource employment)

Those for them say the prevent exploitation of the poorest workers.

On this one, I honestly am not sure. On one hand, I don't think the state should be price fixing in the negotiation between the worker and the employer, and the worker should be free to set their own rate. However, the government has fixed the cost of living to such an extent that it is no longer possible for low skilled workers to price themselves competitively and still be able to afford to live. I guess I see it as necessary in the system we have, but ultimately wrong.

Any other opinions?

As an employer I pay the lowest wage I can get away with that attracts the right level of skill and commitment I need to get the job done. From experience, if I paid the minimum wage it's unlikely I'd get anyone suitable.

How someone chooses to live, or if the $ I pay them is enough to live on, is ultimately not my problem.

If the government does not side on the workers side, the employer surely wont, so much as it could have an economic impact, its a necessary evil in a modern developed society.

Its not like any of the minimum wages are particularly generous to the point that any legitimate business will suffer as a consequence anyway, and Im not aware of any evidence to show businesses have really suffered as a result of the introduction of a minimum wave, or any subsequent increase in it. Generally the workers who can impact a companies growth and performance tend to be paid the going market rate based on their skills and experience, far in excess of minimum wage.

Without a minimum wage workers at the bottom of the food chain will be exploited in times of higher unemployment, and even with it, its no like the workers at the bottom of the pile dont take a beating anyway over benefits, hours offered etc. etc.

Of course there is a relationship between the government set minimum pay rate, and the amount of incoming tax revenue the government will see from that too, so the government is perhaps not entirely a neutral arbiter in all this either.

That is a good argument for unions. Nothing wrong with workers trying to get a better deal for themselves using their collective bargaining power.

Unions can be both a good and a bad thing, look at the Auto industry for evidence of that... In terms of improving industrial conditions and safety etc in the last 100 years they have done amazing things, but when they get selfish and greedy they can bring down the businesses that they depend on for the jobs in the first place. I guess it can be a mutually beneficial parasitic relationship at times, other times, not so much.

You usually have to get the job before you join the union, so not sure its directly applicable to minimum wage.

The problem with unions is that they end up being politicized and/or corrupt (many are just closed shop protection rackets). Never sure why that is exactly, but I think it's partly because they become too big for their own good. I suspect that union participation would be a lot higher if they were narrowly focused and just stuck to wages and working conditions for their members at a local level.

Minimum wage is of no concern to me, although I don't like being dictated by govt or unions how to run my business. I offer a wage, and market forces will determine whether I get anyone or not. Employees have the option to chose to work for me if I offer what they are looking for or not as the case may be.

We value our employees and pay as much as we can afford to pay (more than I earn) commensurate with the job and experience. We are paying well above the minimum set by govt. We try to look after our people as best we can and hope they will reciprocate. In the most part this is our experience, however there is always the odd one who wants to get money, do the minimum amount of work and the world owes them a living. One way or the other we find they don't stay long!

There is no good argument for Unions IMHO.

How did you feel about a union representing you when you flew for Air Canada?

I believe that unions can serve a very useful purpose to protect workers from unscrupulous employers.

But they do have their place and in the recent past unions have overstepped their bounds.

Oh yes indeed, that is of course true, although successful organisations should treat their employees fairly as part of the formula that makes them successful. Naive I know, but generally its a fair point.

No, its the whole seniority bollocks that I find abhorent. Particularly in professional or public sectors - Nursing, Teaching or even Air Traffic Controllers. I mean, would you prefer to have the bloke with lots of seniority guiding your flight into land or the bloke that is best at it? What about teaching your kids? The best teacher or the one who has been there the longest? Tending to you when you are sick? The incompetent nurse with the seniority or the best one? I think you get my drift...........

Growing up in the Thatcherite and post-Thatcherite era in the UK, Unions seem to be an irrelavance. It's one of those quaint North American things like still sending cheques in the mail or paying for incoming cellphone calls. I mused on this as the protesting fishplant workers beat upon my office window some years back, as having spent 11 years in the Auto sector in the UK I'd never had any problems at all even in crossing picket lines.

Heres another perspective.

With no minimum wage there is going to be a constant turnover of employees going from a $4.50 an hour job to a $4.75 job, taking their training and experience with them. The old company suffers in having to fill the vacancy over and over, paying more for HR and training. Then new company will have to train the new guy their way of course, and run the risk of them leaving soon after for $4:80 etc.


If everyone at the bottom level is getting a mandated minimum wage then all the employers are off the hook for setting the level, and there is less incentive and drive for the rapid turnover of the labour force to chase a minimal increase at a different employer.


I dont imagine that many people are willing to up sticks and move province for the few dollars a week difference that the minimum wage differences would make. Now, I dunno if it actually works that way, and I dont envy anyone on minimum wage...but it was just a thought that occurred to me as to one potential benefit to the business of a minimum wage...

Not necessarily. Employers paying low wages will likley end up employees that are worth the low wage. The better ones will leave and, likley be hired by the successful employers, who will snap them up and pay them accordingly, which is what we do. As it costs more to train a new employee than retain one, that expense can and often is put into retaining employees and wages.

Some employees are too fussy in what they will do, they would sooner be getting handouts. There are many jobs in agriculture, more than can be filled from the current labour pool, hence then Seasonal Agricultural Worker Program, brining in labour from the Caribbean and Mexico. This is work Canadians could do, but won't, even for a premium above min wage.

Not always the fault of the union. There are mechanisms in place supposedly to deal with incompetents but most times it's management who fail to document and deal with them. Been there done that and seen it done in education as well. Too many managers or school principals are too lazy to deal with the situation.

That being said I do question unions when they go to unusual lengths to protect the incompetent or those who blatantly ignore rules and get caught (my own did it too).

It also rankled when I got the same rate of pay as someone who was much less capable but had the same number of years in.

Not going there!