P.E.I. minimum wage tracking ahead of CPI

If the P.E.I. government had been following a recent suggestion by the Greater Charlottetown Area Chamber of Commerce to tie minimum wage to the consumer price index, it would be a lot lower today.

The chamber expressed concern this week about the announcement of the third increase in the minimum wage since January 2015.

• 'Sudden announcement' of minimum wage increase concerns business group

It suggested government needs a more planned approach, including tying the wage to the consumer price index.

As the above chart shows, the wage has been increasing much faster than CPI in recent years.

The goes back to a baseline of July 1980, when the minimum wage was $3. If the only increases since that time were tied to CPI, the wage would now be $8.41, instead of $11.

It has not always been the case that minimum wage workers have been better off with what the government has seen fit to offer.

In October 1982 government mandated increases fell behind CPI, and remained behind until April 2006. Increases roughly followed CPI until October 2008. Since then, the wage is up 37.5 per cent, while the CPI is up 10.2 per cent.

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