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2nd Session, 41st Legislature

This HTML version is provided for ease of use and is based on the bilingual version that was distributed in the Legislature after First Reading.

Bill 33

THE MINIMUM WAGE INDEXATION ACT (EMPLOYMENT STANDARDS CODE AMENDED)


  Bilingual version (PDF) Explanatory Note

(Assented to                                         )

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

C.C.S.M. c. E110 amended

1           The Employment Standards Code is amended by this Act.

2           Subsection 1(1) is amended by replacing the definition "board" with the following:

"board" means the Manitoba Labour Board continued under The Labour Relations Act; (« Commission »)

3           Division 1 of Part 2 is replaced with the following:

DIVISION 1

MINIMUM WAGE

Payment of minimum wage

6(1)        An employer shall not pay an employee less than minimum wage for standard hours of work, unless this Code authorizes otherwise.

Minimum wage

6(2)        The minimum wage is

(a) the minimum wage determined under section 7; or

(b) in the case of a prescribed class of employees referred to in subsection 7(5), the minimum wage prescribed for that class by regulation.

Determination of minimum wage

7(1)        On October 1 of every year starting in 2017, the minimum wage that applied to employees immediately before October 1 is to be adjusted in accordance with the following formula:

adjusted wage = previous wage × (CPI 1/CPI 2)

In this formula,

"adjusted wage" is the new minimum wage;

"previous wage" is the minimum wage without rounding that applied immediately before October 1 of the year;

"CPI 1" is the Consumer Price Index for the previous calendar year; and

"CPI 2" is the Consumer Price Index for the calendar year immediately preceding the calendar year mentioned in the description of "CPI 1".

Rounding

7(2)        A minimum wage determined under subsection (1) must be rounded up to the nearest $0.05 increment. But a minimum wage as rounded up must not be used as the previous wage for the purpose of determining the adjusted wage under that subsection.

No decrease

7(3)        If the adjustment otherwise required by this section would result in a decrease in the minimum wage, no adjustment shall be made.

Publication of minimum wage

7(4)        Before April 1 of every year beginning in 2018, the minister must publish on a government website the minimum wage that is to apply under this section starting on October 1 of that year.

Exception re prescribed class of employees

7(5)        This section does not apply to a prescribed class of employees for whom a minimum wage is prescribed by regulation under clause 144(1)(d).

Definition of CPI

7(6)        In this section, "Consumer Price Index" means the Consumer Price Index for Manitoba (All-items) published by Statistics Canada under the Statistics Act (Canada).

Cabinet order for no increase

8(1)        Despite section 7, the Lieutenant Governor in Council may make a regulation before April 1 in any year determining that no adjustment is to be made to the minimum wage on October 1 of that year.

Criteria for order

8(2)        A regulation may be made under subsection (1) only if the Lieutenant Governor in Council is satisfied that economic indicators warrant it, such as a recession or a forecasted recession of Manitoba's economy.

4           Subsections 139(2) and (3) are amended by striking out "prescribed".

5(1)        Clause 144(1)(d) is replaced with the following:

(d) for the purpose of Division 1 (minimum wage) of Part 2,

(i) establishing rules respecting the application of the minimum wage provisions,

(ii) prescribing a class of employees for the purpose of subsection 7(5) and prescribing a minimum wage for that class;

5(2)        Clauses 144(1)(e) and (f) are amended by striking out "prescribed".

5(3)        Clause 144(1)(g) is replaced with the following:

(g) respecting the conduct of inquiries by the Manitoba Labour Board under section 129;

Transitional

6           The minimum wage prescribed by the Employment Standards Regulation, Manitoba Regulation 6/2007, on the day this Act comes into force continues to apply until September 30, 2017.

Consequential amendment, C.C.S.M. c. C190

7           Subsection 16.1(1) of The Construction Industry Wages Act is replaced with the following:

Definition of "board"

16.1(1)     In this section and section 19.1, "board" means the Manitoba Labour Board continued under The Labour Relations Act.

Coming into force

8           This Act comes into force on the day it receives royal assent.

Explanatory Note

Currently, the minimum wage is set out in a regulation under The Employment Standards Code. This Bill amends the Act to provide that the minimum wage is adjusted on October 1 of each year to reflect changes in the Manitoba Consumer Price Index.