Nova Scotia wages lag behind cost of living, advocates warn

Labour advocates in Nova Scotia are sounding the alarm over a growing disparity between wages and the cost of living, urging employers to adopt a living wage. Recent data reveals that an increasing number of Atlantic Canadians are finding it difficult to maintain their earnings against escalating expenses.

“

People are struggling. They’re really struggling to make ends meet.

The province's minimum wage is set to increase to $17 per hour in the fall, up from the current $16.75. However, the Canadian Centre for Policy Alternatives (CCPA) calculates that a true living wage in Nova Scotia should be $27.60 per hour. Christine Saulnier, the CCPA's Nova Scotia director, stated that half of the province's workforce earns less than this amount, despite rising costs for essentials like food, housing, and utilities.

Saulnier emphasized the need for businesses to offer competitive pay, noting that employees are also community members and clients. She argued that failing to provide adequate wages is short-sighted for businesses. The CCPA has long advocated for a $20 minimum wage, a benchmark they believe should have already been reached.

“

We’ve certainly been calling for a $20 minimum wage for a long time, and we should be there already.

Conversely, the Canadian Federation of Independent Business (CFIB) points out that many small business owners in the Maritimes are already paying above the minimum wage. Frederic Gionet, a senior policy analyst for the CFIB in Atlantic Canada, acknowledged that businesses are aware of the need to adjust wages to retain staff and foster growth, but stressed that "financial constraints" impose limits.

“

Those are also the people in your community. Those are the people who are also your clients, who are also wanting to actually pay for the service that you have, right.

Adding to the pressure, a recent RBC poll found that 57% of Atlantic Canadians are concerned about insufficient emergency savings. Craig Bannon, national director of financial planning support for RBC, noted that four in ten individuals have dipped into their emergency funds for non-emergency expenses, with Atlantic Canada reporting the highest rate nationally. The Nova Scotia Federation of Labour is calling for a provincial committee dedicated to improving working conditions, highlighting that the gap between the minimum and living wage has doubled since 2018.

“

And as a business, it’s pretty short-sighted to not do that.