The Government of the Northwest Territories (GNWT) will be, effective Sept. 1, 2023, changing the way it calculates and adjusts the territorySA国际影视传媒檚 minimum wage.
SA国际影视传媒淭he minimum wage will be adjusted annually using a formula based on the percentage change in the Consumer Price Index (CPI) for Yellowknife and the percentage change in the average hourly wage (AHW) in the Northwest Territories (NWT) for the preceding calendar year,SA国际影视传媒� reads the GNWTSA国际影视传媒檚 notice.
After the change occurs, it will move forward annually unless otherwise directed by the minister of Education, Culture and Employment (ECE).
SA国际影视传媒淯sing CPI SA国际影视传媒� allows the minimum wage to keep up with the increasing costs for NWT residents, and with other jurisdictionsSA国际影视传媒� minimum wage rates,SA国际影视传媒� continues the notice.
The GNWT also states that businesses will be able to SA国际影视传媒減lan for the minimum wage rate to be adjusted on September 1st each year, and the annual increases will be smaller, which will allow businesses to better absorb the impact of each increase.SA国际影视传媒�
The new adjusted rate will be announced the ECE by Aug. 1 each year.
Following the GNWTSA国际影视传媒檚 announcement, its decision to change how the minimum wage is calculated and adjusted garnered a response from the NWT Chamber of Commerce.
SA国际影视传媒淏y removing public oversight into its minimum wage policy, the territorial government has taken full control over future increases to the minimum wage, usurping its responsibility to be accountable to taxpayers and going back on pledges to be transparent,SA国际影视传媒� reads the NWT Chamber of CommerceSA国际影视传媒檚 notice.
SA国际影视传媒淚t seems the GNWT believes it will be able to fend off political and public blowback to future hikes to the NWTSA国际影视传媒檚 minimum wage by blaming it on a nebulous SA国际影视传媒渇ormula,SA国际影视传媒� the notice continues.
The NWT Chamber of Commerce continued by saying that the SA国际影视传媒渃alculation, as presented, is not clear and unknown.SA国际影视传媒�
SA国际影视传媒淭he NWT is already among the highest-cost jurisdictions for doing business, with some of the highest wages in [the] country,SA国际影视传媒� said Yanik DSA国际影视传媒橝igle, NWT Chamber president. SA国际影视传媒淲hat everyone has to realize is that increases to the minimum wage can have an upwards ripple effect on most other wages, forcing employers to make some tough decisions. While there are relatively few full-time workers earning only the minimum wage, if those few hundred people receive, letSA国际影视传媒檚 say, an eight-per-cent hike one year, employers could be pressed to provide that kind of raise upwards throughout other job classifications in a company.SA国际影视传媒�
The notice continues by pointing out that while the ripple effect of increased wages could occur, other aspects such as increased cost of living and doing business in the North can SA国际影视传媒渁ccelerate already present, inflationary pressures, especially when implemented via automatic formula and without consultation.SA国际影视传媒�
The Chamber recommended to have stakeholders across the territory continue to provide input and recommendations to the minister.
Furthermore, the NWT Chamber also noted an appeal that occurred in the Legislative Assembly around one decade ago to adjust the minimum wage rate through a formula based on the Consumer Price Index.
The appeal was researched by Employment department staff and rejected in favour of establishing the Minimum Wage Committee.
SA国际影视传媒淲hy is the GNWT taking this step at this time? It just doesnSA国际影视传媒檛 make sense, as it just throws another negative variable into the mix for the existing and future business community,SA国际影视传媒� said DSA国际影视传媒橝igle.
