Direct Request (CEACR) - adopted 2011, published 101st ILC session (2012)

Minimum Wage-Fixing Machinery Convention, 1928 (No. 26) - Canada (Ratification: 1935)

Article 2 of the Convention. Coverage of minimum wage legislation. While noting the Government’s explanations concerning limited categories of workers excluded from minimum wage coverage in different provinces and territories, the Committee requests the governments concerned to continue to examine the advisability of extending minimum wage protection to those categories and keep the Office informed accordingly.

Article 3(2). Participation of employers’ and workers’ organizations in minimum wage fixing machinery. Further to its previous comment, the Committee notes with interest that in all provinces and territories minimum wage rates have been adjusted either in 2010 or 2011. It also notes that Alberta and Nova Scotia have adopted a new methodology for adjusting minimum wage rates, using various indicators, such as average weekly earnings and low income cut off, which are developed and calculated by Statistics Canada. It also notes that in Quebec the set of indicators used to adjust the minimum wage was modified and now includes 13 indicators.

Moreover, the Committee notes with interest recent developments regarding the participation of the social partners in the minimum wage fixing process, such as the announcement that in Ontario a Minimum Wage Committee would be established, consisting of a chairperson and six other members equally representing employers and workers. The Committee also notes the Government’s explanations concerning the consultative process in Quebec prior to the annual revision of the minimum wage and the number of employers’, workers’ and civil society organizations involved in that process. Recalling that the Convention leaves it to each Member to decide the nature and form of the minimum wage-fixing machinery appropriate to national conditions, the Committee requests the Government to provide more detailed information on the manner in which employers’ and workers’ organizations are associated in the operation of the minimum wage fixing machinery in British Columbia, Northwest Territories and Ontario. The Committee also requests the Government to clarify whether under section 15(1) of the Labour Standards Act of Saskatchewan, as last amended in 2011, the Minimum Wage Board includes in its composition representatives of employers’ and workers’ organizations.

Article 3(2)(3). Differentiated minimum wage rates for specific categories of workers. While noting the Government’s explanations concerning practices of lower minimum pay rates for workers with disabilities in different provinces and territories, the Committee requests the governments concerned to continue to review those practices from time to time in the light of the principle of equal pay for work of equal value and to keep the Office informed accordingly.

Article 4. System of supervision and sanctions. Further to its previous comment regarding section 130(1) of the Employment Standards Code of Alberta which provides for the punishment of both the employer and the employee in case of non-compliance with minimum wage legislation, the Committee notes the Government’s explanations that the intent is to deter employers and employees from entering into arrangements that are incompatible with public policy. It also notes that, in practice, no employee has ever been prosecuted for having received a sub-minimum payment. The Committee reiterates that the Convention requires in case of underpayment workers to be entitled to recover by legalized proceedings the amount due and not to be prosecuted for minimum wage violation. The Committee therefore requests the Government to consider possible action with a view to amending this provision of the Employment Standards Code and bringing it into line with the Convention.

Part V of the report form. Application in practice. The Committee notes the detailed statistical information provided by the Government concerning the evolution of minimum wage rates, the approximate percentage of workers paid at the minimum rate broken down by gender, age and industry, and the number of complaints related to the payment of the minimum wage. The Committee requests the Government to continue to provide information concerning the practical application of the Convention, including for instance, inspection results showing the number of contraventions of the relevant legislation reported and penalties imposed, and copies of official reports or studies addressing issues of minimum wage policy.