Mr. Speaker, I would like to address the motion put forward by the hon. member for Rosemont—La Petite-Patrie to reinstate the federal minimum wage and increase it to $15 per hour over five years.
Changing the way minimum wages are established for federally regulated employees in Canada is simply unnecessary, which is why I cannot support the motion today. First, allow me to explain how minimum wages are set.
Currently, employees in federally regulated enterprises are entitled to the general minimum wage of the province or territory in which they are employed. This has been the case since 1996 when minimum wages were pegged to match the general minimum wage rate of the province or territory in which the federally regulated worker is usually employed. Although some may have forgotten this, this measure significantly improved protection for federally regulated employees. Prior to 1996, these employees were entitled to the lowest minimum wage rate in Canada, a measly $4 an hour compared to an average of about $6 an hour in provinces and territories at the time.
Workers in federally regulated companies are employed in industries such as banking, transportation, telecommunications, shipping, postal services, and uranium mining. Generally speaking, these are not low-wage workers. Most of the jobs in these industries already pay well above the minimum wage.
In 2008 the federal jurisdiction workplace survey found that only 416 employees, or 0.05% of all employees in the federal jurisdiction, were earning just the legal minimum wage, which was on average less than $8.50 per hour at the time. Only about 1% earned less than $10 an hour.
Since then minimum wages have increased in all provinces and territories. Four provinces, Saskatchewan, Manitoba, Prince Edward Island, and Newfoundland and Labrador have announced that they will increase their minimum wage on October 1, 2014. Not only that, but Nova Scotia, Saskatchewan and Yukon index their minimum wage annually to adjust for increases to the cost of living. Ontario has also announced that it will establish an indexing mechanism.
Why is the federal minimum wage pegged to the provincial and territorial minimum wages? The provinces and territories are in the best position to assess and respond to the requirements of their local labour markets. As I am sure members of the House are aware, the cost of living varies by province, territory and region. That is a key consideration when establishing minimum wages. We believe that provincial and territorial governments can better assess local needs.
In the last four years all provinces and territories have increased their minimum wage. To give members an idea, currently the lowest general minimum wage rate provided in four jurisdictions is set at $10 an hour. At the high end of the scale are Ontario and Nunavut where most employees must be paid at least $11 an hour. The other jurisdictions fall in between.
Our government wants all Canadians to prosper, not just those in the federal jurisdiction, and the best way to do that is through a strong economy. That is why the Minister of Finance recently announced a reduction in EI premiums that will leave more money in the pockets of small businesses and enable them to strengthen their businesses and the economy. The minister also confirmed that in 2017, EI premiums will go down from the current $1.88 per $100 of earnings to $1.47 per $100 of earnings. This will deduct less money from employees' pay cheques, leaving more money in their pockets.
In the federal jurisdiction we are working to ensure that workplaces are fair, safe and productive. With that goal in mind we have taken steps to improve labour standard protections for employees. There is also the wage earner protection program. This program protects the wages, vacation pay, severance pay and termination pay owed to workers whose employers go bankrupt or into receivership—