Alberta's minimum wage is set to increase by $1 this fall as the NDP government forges ahead with its plan for a $15 minimum wage by 2018.

But critics say the "hastily deployed" increase lacks real analysis and consultation.

In a news conference Monday, Jobs, Skills, Training and Labour Minister Lori Sigurdson announced Alberta's minimum wage will increase from $10.20 to $11.20 as of Oct. 1. The separate minimum wage tier for liquor servers will also increase by $1.50 to $10.70 before being phased-out altogether by 2016.

The NDP government is planning to reach $15 per hour by 2018. October's increase will move Alberta from being tied with Saskatchewan for the lowest minimum wage in Canada to being the third highest, behind Northwest Territories with $12.50 and Ontario at $11.25.

"By keeping Alberta's minimum wage as low as possible, many people and their families had no choice but to resort to food banks and social support programs to make ends meet," said Sigurdson, touting the "moderate" increase as part of the government's plan for poverty reduction.

"We believe minimum wage should allow people to meet their basic needs."

The move was praised by Sue Tomney, CEO of the YWCA of Calgary, who said the increase will have an "immediate positive impact" for women who make up 60 per cent of minimum wage earners.

Sigurdson said the decision was made following a two-day consultation with 48 stakeholders including business advocates, academia, labour unions and social service providers. The government will continue to consult, she said, but fully plans to reach the $15 target promised in the election campaign.

Both the Edmonton and Calgary Chambers of Commerce argue the increase will result in higher prices for goods and services, a wage increase "ripple" in the job market, a reduction in worker benefits and lower hiring of youth, elderly, disabled and seasonal employees across the province.

"I guess the best thing we can say is it wasn't $2," said Alberta Chambers of Commerce President Ken Kobly.

While Sigurdson pointed to the United States to highlight the benefits of a $15 minimum wage, the Wildrose Opposition said the government has done "zero" economic analysis of the potential impact in Alberta.

“We need to put on the brakes, listen to chambers, small businesses and job creators to make sure we understand the full impact of this planned 50 per cent increase," said Leader Brian Jean.

PC Leader Ric McIver said he's worried about the "ripple effect" of higher prices and job losses while Liberal Leader David Swann criticized the "artificial timeline" and blasted the government for moving forward "without considering the impact it will have on small businesses in these hard economic times.”

While supportive of the $1 increase, Alberta Party Leader Greg Clark called the plan "hastily deployed" and too "locked-in" to the $15 target while also missing "any tie to a poverty reduction strategy."

The province says minimum wage earners account for roughly three per cent of the Alberta's work force and are predominately part-time workers in the food service industry between 15 and 19-years-old.

matthew.dykstra@sunmedia.ca

@SunMattDykstra

Five reasons against the $15 minimum wage

1. Price inflation

The most obvious impact of a large minimum wage increase is an increase in the price of goods and services. Labour Minister Lori Sigurdson acknowledged that businesses indicated they "may have to readjust" and many will likely choose to increase prices. Alberta Chamber of Commerce President Ken Kobly said the common trend is for businesses to "raise prices wherever they can" in response to increased labour costs.

2. Wage "ripple" effect

Both the Edmonton and Calgary Chambers of Commerce say the $15 minimum wage target will have "significant" repercussions up the wage ladder as it also requires raises for those making $15 per hour currently. Shift managers making $15 per hour will demand a raise to justify their level of responsibility. The chambers say the effect "has been shown to increase a firm's wage bill by nearly two-fold."

3. Layoffs, reduced hiring

While Sigurdson dismissed any talks of layoffs as "fear mongering," Canadian studies have shown that a 10 per cent increase in the minimum wage would give rise to a one to three per cent reduction in employment. The Canadian Federation of Independent Business says a 47 per cent increase in the minimum wage in Alberta would result in 50,290 to 183,300 jobs lost. A 2014 minimum wage study from the Ontario government found a greater chance of reduced job opportunities rather than outright layoffs as "workers who remain employed will benefit, while workers who become unemployed will be the losers under the new wage regime."

4. Benefits to poverty reduction unclear

The Canadian Centre for Policy Alternatives found that increasing the minimum wage can boost incomes for low-wage earners and have an impact on reducing poverty but should not be used solely as an anti-poverty measure. Another study published by the Journal of Labour Research using data from Canada's Survey of Labour and Income Dynamics (SLID) for 1997 to 2007 showed that "job losses are disproportionately concentrated on the poor" and concluded that "minimum wages are poorly targeted as an anti-poverty device and are at best an exceedingly blunt instrument for dealing with poverty."

5. $15 target puts Alberta out of step with rest of Canada

The $15 per hour minimum wage by 2018 target will mean Alberta will have the highest minimum wage in the country by far, as other provinces such as British Columbia have tied their minimum wage increases to the rate of inflation. The increase in Alberta affects roughly three per cent of the province's work force who are predominately part-time workers between 15 and 19 years old in the retail and food service industries.

Minimum Wage Across Canada:

British Columbia $10.25 ($10.45 as of Sept. 15)

Alberta $10.20 ($11.20 as of Oct. 1)

Saskatchewan $10.20 ($10.50 as of Oct 1)

Manitoba $10.70 ($11.00 as of Oct. 1)

Ontario $11.00 ($11.25 as of Oct. 1)

Quebec $10.55

Newfoundland and Labrador $10.25 ($10.50 as of Oct.1)

New Brunswick $10.30

Nova Scotia $10.60

Prince Edward Island $10.35 ($10.50 as of July 1)

Yukon $10.86

Northwest Territories $12.50

Nunavut $11.00