UCP Rejects NDP’s Minimum Wage Increase Proposal for Alberta

The United Conservative Party (UCP) government has voted against a proposed bill from the opposition New Democratic Party (NDP) that aimed to increase Alberta’s minimum wage. The bill, known as Bill 201, sought to raise the minimum wage from $15 per hour to $16 starting in December 2025, followed by increases to $17 in 2026 and $18 by October 2027. Additionally, it proposed indexing the wage to the Consumer Price Index (CPI) to ensure future increases align with the cost of living. The bill also aimed to eliminate the youth minimum wage, currently set at $13 per hour, and to introduce protections for tips to ensure they go directly to workers.

During a legislative session on Monday, the UCP voted down the bill during its second reading, leaving Alberta’s minimum wage at the lowest in Canada. This wage has remained unchanged since 2019, while other provinces and territories have implemented or are planning wage increases in the coming years.

Kathleen Ganley, MLA for Calgary-Mountain View and the sponsor of the bill, expressed disappointment, stating, “Today, UCP MLAs had the chance to stand with workers, vote for higher wages, and help put the basics back within reach of more Albertans. Instead, the UCP decided to vote against workers and to keep Alberta’s minimum wage the lowest in the country.” Ganley emphasized that the NDP consulted with various stakeholders, including chambers of commerce, workers, and small business owners, to create a balanced approach to wage increases.

She noted the urgency of addressing the affordability crisis, stating, “While costs continue to balloon, the minimum wage hasn’t gone up for seven years.” Ganley highlighted that many workers struggle to make ends meet and often rely on food banks.

Frank Creasey, CEO of the Red Deer District Chamber of Commerce, commented on the bill’s rejection, explaining that his organization did not have the opportunity to provide feedback. He clarified that the chamber was neutral regarding the bill, focusing instead on advocating for small business prosperity and competitiveness. Creasey remarked, “There’s been a lot of compression, a lot of cost increases. We want stability on a number of different fronts.” He pointed out that living wage standards vary by city and emphasized the need for businesses to attract and retain labor.

When asked if a living wage would eventually need to rise, Creasey acknowledged the point, stating, “There’s a lot of pressures with both revenue and expenses. Fact-based decisions are what would be supported from a provincial perspective.” He suggested that a stable economic environment would benefit small businesses.

Hunter Baril, press secretary for the Ministry of Jobs, Economy, Trade and Immigration, defended the UCP’s decision. He cited a loss of 21,000 youth jobs during the last minimum wage increase under the NDP between 2015 and 2019. Baril criticized the NDP for proposing a “reckless” increase of 20 percent without consulting businesses. He expressed concern that such increases could jeopardize job opportunities in an already strained entry-level job market.

The UCP’s rejection of the minimum wage increase proposal reflects ongoing debates about the balance between supporting workers and maintaining a competitive business environment in Alberta. As discussions continue, the future of wage policy in the province remains uncertain, particularly in light of rising living costs and economic pressures.