The following is being issued today by Anna Thistle, Minister of Labour. Is was also read in the House of Assembly:

Increase to Minimum Wage

I am pleased to rise today to inform my Honourable colleagues and the people of this province that the current minimum wage of $5.50 per hour will be increased in 2002. The minimum wage will increase in two increments, with a 25 cent increase to $5.75 per hour effective May 1, 2002, followed by a further 25 cent increase to $6.00 on November 1, 2002. 

Honourable members may be aware that in February, 2000, my colleague, the former Minister of Environment and Labour, announced the appointment of a Labour Standards Board with representation from business and labour for the purpose of reviewing the province's Labour Standards Act and Regulations. The Board examined a number of matters, including the minimum wage. Today's announcement reflects government approval of several key recommendations from the Board. 

The increase will be implemented in two increments. This is consistent with the Board's recommendation for a six-month notice period for minimum wage increases, and will provide affected employers with sufficient time to adjust to the new minimum wage. This also reflects the outcome of recent consultations with business leaders on a minimum wage increase. 

Section 30 of the Labour Standards Act requires government to review the minimum wage every two years. However, today, government is committing to establishing an advisory committee to consult annually with business and labour representatives on labour standards issues, including the minimum wage. This too was a recommendation of the Labour Standards Review Board and is consistent with government's commitment to work with business and labour to develop a positive labour climate throughout the province.

This change represents the first increase to the minimum wage since 1999, and it brings Newfoundland and Labrador's rate in line with that of the other Atlantic provinces. Government has considered the implications of raising the minimum wage and believes that this increase strikes a fair and reasonable balance for both the employee and the employer.

Thank-you. 

2001 11 19                             2:30 p.m.