Québec Solidaire is proposing a $20 minimum wage to assist low-income workers facing financial strain from their expenses. However, Christine Fréchette, the leader of Coalition Avenir Québec (CAQ), argued that a rapid increase in the minimum wage could have negative repercussions on the overall wage structure and the economy.
Fréchette expressed concerns that altering the minimum wage would impact the entire wage spectrum, causing significant economic harm. Despite her assertions, economic researcher Eve-Lyne Couturier from the Institut de recherche et d’informations socioéconomiques (IRIS) refuted these claims, stating that historical data does not support such catastrophic effects.
A recent study by IRIS in 2023, led by Couturier and Raphaël Langevin, found no correlation between raising wages for low-income earners and triggering inflation or economic instability. Currently, Quebec ranks as the fifth highest province in Canada with a minimum wage of $16.60 per hour, but when factoring in the federal minimum wage and the Northwest Territories, it falls to ninth place overall.
According to data from the Institut de la statistique du Québec, approximately 137,100 individuals, constituting about three percent of the province’s salaried workforce, earn the minimum wage. Increasing the minimum wage to $20 per hour would directly benefit an estimated 250,000 to 260,000 Quebecers currently earning between $16.60 and $20.
Pierre-Antoine Harvey, an assistant professor of industrial relations at the Université de Montréal, acknowledged that a sudden jump to a $20 minimum wage would be significant. However, empirical research suggests that such an increase would not result in major disruptions. Harvey highlighted that some studies indicate minimum wage hikes also elevate the wages of those earning slightly above the minimum threshold.
In response to the criticism of the proposed wage increase, Ruba Ghazal, co-spokesperson for Québec Solidaire, emphasized the importance of enabling individuals to live with dignity. She mentioned that their party’s plan includes allocating $330 million to support businesses in adjusting to the wage hike. Ghazal underscored the fundamental principle that individuals should be able to cover their expenses and avoid falling into poverty while working.