Alberta Federation of Labour report debunks UCP’s youth minimum wage
Edmonton: Why would the government, in this day and age, go backwards to a youth minimum wage, something that was actually phased out in the 1990s because employers were abusing it? The Alberta Federation of Labour has looked into some of the research and prepared a short report to look at the possible reasons and effects.
The key problem is that youth minimum wages strongly encourage employers to fire workers as they age. One empirical study analyzing the impact of Denmark’s youth wage differential, found that the employment rate craters for young people once they graduate to the universal wage.
Gil McGowan, president of the Alberta Federation of Labour, said the youth minimum wage is “outrageously discriminatory” and will have unintended consequences.
“Premier Kenney is creating an underclass of workers who could be hired for less and used as pawns to drive down wages for other workers,” he said.
McGowan also says the AFL is exploring the possibility of challenging the youth wage as a contravention of international law.