Quotulatiousness

December 12, 2015

QotD: The economic non-issue of a “federal minimum wage”

Filed under: Cancon, Economics, Government, Quotations — Tags: , , , — Nicholas @ 01:00

… the other new strategic wrinkle was much worse in that regard: the announcement of a policy for a restored “federal minimum wage.”

Provinces set minimum wages for most employees under the Constitution, but Ottawa has an unused right to set a national minimum in private industries regulated under Part III of the Canada Labour Code. The major categories are banking, interprovincial and international transport, and broadcasting. You may be wondering how many people in these technically complicated lines of business are actually making the minimum wage. In the most recent survey of the federal labour jurisdiction (taken in 2008), the answer arrived at by Statistics Canada was: 416 people. In the entire country.

The New Democrats were pretty clearly counting on the press to foul up the story, and it obliged. Some Postmedia newspapers, for example, wrote headlines implying that the new wage floor was for “federal workers.” Economists, who mostly dislike minimum wages anyway, will probably tear into the NDP for a misleading measure that, to a close approximation, helps nobody. And it probably won’t matter much, as New Democrats go on repeating the words “federal minimum wage” for a year.

Colby Cosh, “How to ignore the NDP’s new talking points”, Maclean’s, 2014-09-18.

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