After years of worker advocacy, minimum wage rates in Newfoundland and Labrador were incrementally increased to $15.00 per hour in 2023. At $15.60, Newfoundland and Labrador now ranks 9th amongst the provinces and territories for minimum wage rates. Only New Brunswick, Nova Scotia, Alberta and Saskatchewan have lower wages.

“Working people and their families continue to face an affordability crisis and deserve better than a race to the bottom when it comes to minimum wage.”

Jessica McCormick, President of the Newfoundland and Labrador Federation of Labour.

In February 2024, the provincial government launched its review of the province’s minimum wage. The Newfoundland and Labrador Federation of Labour participated in this consultation process, recommending:

1. Raise the minimum wage to $20 within the next three years
2. Establish a minimum wage formula that reflects the cost of living and productivity
3. Establish a permanent Fair Wages Commission

The provincial government’s public engagement process on minimum wage concluded at the end of March however, a report on the findings of the review has still not been released.  

“It is time for the provincial government to take a principled approach to setting the minimum wage. By principled, I mean ensuring that this is a protective wage that supports workers’ ability to afford what they need to survive and alleviates the stress of making difficult choices about the food they can buy this month, the prescription they need to fill, or the past-due heating bill,” said McCormick. “The NLFL is calling on the provincial government to release its 2024 Minimum Wage Review report and give low-wage workers a path to a living wage.”

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“When you consider the record-high costs of housing, transportation and groceries in our province, $15 per hour is simply not enough to make ends meet for minimum wage workers,” said Jessica McCormick, President of the Newfoundland and Labrador Federation of Labour. “Five years ago, this increase would have been cause for celebration. In 2023, it’s just not good enough. Workers need a living wage now.”

A living wage differs from the minimum wage in that it is calculated as the income a family would needs to live and work in their community. It is often significantly higher than the minimum wage. In 2019, the Canadian Centre for Policy Alternatives calculated a living wage for St. John’s to be $18.85. Since then, rising costs would put a living wage at an even higher rate and those rates would vary by region.

According to Statistics Canada’s Consumer Price Index report for August 2023, Newfoundland and Labrador had the fastest rental price growth in the country compared to last year. A minimum wage worker in Newfoundland and Labrador would need to earn $15.94 per hour for an average market one-bedroom rental and $18.08 per hour for a two-bedroom rental. In St. John’s, those thresholds increase to $16.60 per hour for a one-bedroom rental and $19.96 per hour for a two-bedroom rental.

“Workers should be able to earn a wage that provides them with a good quality of life. A living wage not only lifts workers out of poverty, but it also allows working families to support the healthy development of their children and enables them to become full participants in the social, civic, and cultural aspects of their communities,” said McCormick.

Women, racialized workers and new immigrants are disproportionately represented among low-wage workers. Lifting these workers up also demonstrates a commitment to advance equity and justice.

“Now is the time for the provincial government to commit to a plan and timeline for implementing a living wage that gives working people a chance to thrive, not just survive,” concluded McCormick.

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