Minimum Wage Increase Falls Short for Workers in Newfoundland and Labrador
NEWS RELEASE
Minimum Wage Increase Falls Short for Workers in Newfoundland and Labrador
For Immediate Release:
Friday, February 14, 2025
ST. JOHN’S, NL – Today, the provincial government announced a $0.40 increase to the minimum wage, effective April 1, 2025, tied to the Consumer Price Index. While this adjustment acknowledges the need for change, it fails to adequately address the challenges faced by workers struggling to keep up with the rising cost of living. This decision leaves thousands of workers and their families unable to meet basic needs, with broader implications for our communities and our economy.
“Every worker deserves the dignity of being able to provide for themselves and their families. Yet, in Newfoundland and Labrador, nearly one-quarter of our workforce—approximately 23%—earns less than $20 per hour, making it increasingly difficult to make ends meet,” said Newfoundland and Labrador Federation of Labour President Jessica McCormick. “Tying the minimum wage to inflation alone is not enough. Without more substantial increases, workers will continue to fall behind, unable to keep pace with the rising costs of essentials like housing, food, and childcare. In real terms, they will remain trapped earning $15 an hour indefinitely.”
In August 2024, the Canadian Centre for Policy Alternatives (CCPA) released its second provincial living wage report, revealing the stark reality of what it takes to survive in Newfoundland and Labrador. The report outlines the hourly wage needed to cover basic expenses across four regions:
- Central Newfoundland: $24.10
- Eastern Newfoundland: $24.70
- Western Newfoundland: $23.10
- Northern Peninsula and Labrador: $27.30
Approximately 17,000 workers earn the minimum wage in Newfoundland and Labrador.
These figures, based on a family of four and accounting for tax credits, deductions, and government benefits, include essential costs such as food, shelter, transportation, and childcare. The gap between these living wages and the announced minimum wage is significant.
“The current approach to minimum wage policy is simply not meeting the needs of workers,” said McCormick. “Without meaningful action, the gap between the minimum wage and a living wage will only widen, pushing more families into poverty and further straining our social systems. Workers need – and deserve – a wage that reflects the true cost of living and allows them to thrive, not just try to survive.”
To build an economy that works for everyone, the NLFL is calling for immediate action:
- Implement a more substantial minimum wage increase beyond the current $16 per hour to better align with living wage benchmarks.
- Conduct annual, region-specific living wage calculations to ensure policies reflect the real costs faced by workers and their families.
- Reform income benefits, including adjusting eligibility thresholds and reducing clawback rates, to support workers transitioning to better-paying jobs. \
Using evidence-based living wage data to guide labour market and social policies will ensure government programs effectively support working people. These changes are not only fair but also economically beneficial, as they will help reduce poverty, strengthen local economies, and create a more equitable province for all.
“The time for half-measures is over. Newfoundland and Labrador’s workers cannot afford to wait,” said McCormick.
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