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S.M. 2017, c. 27
Bill 33, 2 nd Session, 41st Legislature
The Minimum Wage Indexation Act (Employment Standards Code Amended)
This note is a reader's aid and is not part of the law.
Before this enactment, the minimum wage was set out in a regulation under The Employment Standards Code. This Act amends the Code to provide that the minimum wage is adjusted on October 1 of each year to reflect changes in the Manitoba Consumer Price Index.
(Assented to June 2, 2017)
HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:
Subsection 1(1) is amended by replacing the definition "board" with the following:
Division 1 of Part 2 is replaced with the following:
An employer shall not pay an employee less than minimum wage for standard hours of work, unless this Code authorizes otherwise.
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.
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".
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.
If the adjustment otherwise required by this section would result in a decrease in the minimum wage, no adjustment shall be made.
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.
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).
In this section, "Consumer Price Index" means the Consumer Price Index for Manitoba (All-items) published by Statistics Canada under the Statistics Act (Canada).
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.
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.
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,
Clause 144(1)(g) is replaced with the following:
(g) respecting the conduct of inquiries by the Manitoba Labour Board under section 129;
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.
Subsection 16.1(1) of The Construction Industry Wages Act is replaced with the following:
In this section and section 19.1, "board" means the Manitoba Labour Board continued under The Labour Relations Act.
This Act comes into force on the day it receives royal assent.