What is the basis for minimum wage protection in Canada?

Minimum wage protection in Canada is primarily established through provincial and territorial legislation. Each province and territory has the authority to set its own minimum wage rates, which can vary significantly across the country. This decentralized approach allows local governments to consider the cost of living, economic conditions, and labor market needs specific to their regions when determining the appropriate wage levels for workers.

This legal framework reflects the principle that employment standards, including minimum wage, fall under provincial jurisdiction as outlined in the Constitution Act, 1867. Therefore, while federal regulations do exist for certain sectors governed by federal law, such as banking or transportation, the bulk of minimum wage protections are administered at the provincial or territorial level.

Collective bargaining agreements can certainly play a role in determining wages for unionized workers, but they do not represent the legal baseline for minimum wages. Similarly, while employers may have their own policies regarding pay, these cannot undermine the minimum wage established by law. Thus, the correct basis for minimum wage protection in Canada lies firmly in the legislative frameworks set by provincial and territorial governments.