In December 2003, the Alberta Federation of Labour published a report that captured national attention. “Running to a Stand Still: How the Alberta Government Policy has Lead to Wage Stagnation in a Time of Prosperity.” This report addresses our booming economy that has not yet translated into better wages for the average Albertan.
During the period 1992 – 2002, Alberta enjoyed a decade of sustained and vigorous economic growth. Fuelled by surging energy prices and a strong global economy, the province’s GDP, employment and productivity grew at a rate not seen since the late 1970s and early 1980s.
One positive economic indicator, however, remained flat during this boom: real wages. Despite a tight labour market and shortages of skilled labour, real average weekly and hourly wages in Alberta remain at 1992 levels.
Alberta’s minimum wage also remains the lowest in Canada and a recent letter to the Lethbridge Herald by Human Resources Minister Clint Dunford indicates that there is no prospect of an increase anytime in the near future.
While Clint Dunford argues that only 1% of the work force is working for minimum wage, you need to know that the minimum wage impacts upon all wages, including welfare rates. Would our economy collapse if we started to share the wealth a bit and pay workers wages in keeping with inflation? That is one argument. There are others.
According to this report the question is: If the economy is booming, and prosperity is upon us, why is that not the experience of the average Albertan? Instead we see dramatic increases in our cost of living, mostly due to the privatization of utilities. We see a stagnation of real wages and an increasing number of personal and business bankruptcies.
If we only focus on the good news of a strong economy we just might miss the bigger picture. Without the whole picture in mind, we might mistake our low wage booming economy as strictly a good thing. There are tough questions to be asked about our economy. And efforts must be made to take in the experience of all Albertans, for better or worse.
Speaker: Tom Fuller B.A., M.B.A. is a researcher and member of the executive staff at the Alberta Federation of Labour in Edmonton. He graduated from the University of Alberta with a Bachelor of Arts degree in 1969 and with a Masters in Business Administration in 1995.