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Liberals nine-year minimum wage freeze boosts McDonald’s profits
June 29, 2010
BC sinks further behind as Newfoundland raises minimum wage to $10
British Columbia's minimum wage will fall further behind the rest of Canada when Newfoundland raises its minimum wage to $10 an hour on July 1st. BC's minimum wage has been frozen at $8 an hour since 2001. Also frozen is the so-called "training wage" that allows employers to pay new workers as little as $6 an hour for their first 500 hours of employment.
"McDonald's and other low-wage employers in BC are real beneficiaries of the minimum wage freeze," says Federation President, Jim Sinclair. "McDonald's will pay as little as possible and our low minimum wage means McDonald's workers in BC earn the lowest starting wages anywhere in Canada."
McDonald's restaurants in St. John's Newfoundland already pay new part-time workers $10.25 an hour. In Vancouver, many new McDonald's workers are paid as little as $6.75 an hour, a salary difference of $3.50 an hour. A part time employee in Vancouver working 20 hours a week would earn $1,750 less than their counterpart in St. John's in their first 500 hours of employment and earn $2,965 less in the first full year of employment. The price of a Big Mac is the same in both cities, $4.19.
The high cost of living in BC means minimum wage workers here are even further behind. When the cost of living is included, a minimum wage worker in BC would have to earn $13.21 to match the spending power of a minimum wage worker in Newfoundland.
"McDonald's is a multi-national with global profits last year of $4.5 billion," says Sinclair. "The Liberal government's minimum wage freeze has, for nine years, taken thousands of dollars from individual worker's paycheques and effectively given the money to an enormously profitable company that would still make large profits if we raised the minimum wage to where it should be. Every low-wage employer in BC has reaped the same benefits."
The B.C. Federation of Labour is calling for a $10 an hour minimum wage, with annual increase linked to the cost of living.
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For more information: Evan Stewart, Director of Communications (604) 220-3095. Download a copy of factsheet, click here.
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