It would seem the government is not ready to abide by its own minimum wage laws.
Two local service providers have reported difficulties in securing additional funding from the province to cover the increased cost of minimum wage.
Despite repeated calls for relief, the Persons with Developmental Disabilities (PDD) program indicated that it does not know how or if it will cover wage increases to government-funded positions brought on by the recent hike to minimum wage.
“It’s interesting to see that this new minimum wage law is not yet followed by the government themselves, and they are the ones who implemented it,” said Carmen Horpestad, executive director of LoSeCa, a St. Albert-based service provider.
The Ministry of Human Services, through PDD, funds the wages of most workers providing care in the disability sector through contracts with service providers.
Without increased provincial funding these service providers are forced to run deficits, or cut services – something Craig Brown, executive director of Transitions, would rather not do, given the affected employees are sleep shift personnel for clients who require 24/7 services.
“Do we no longer provide the service at night and we leave people who are vulnerable without that safety?” asked Brown. “That’s certainly not what we want to do, but if the province isn’t prepared to fund it, I’m not sure what other options we have.”
For now Brown operates a deficit in hopes that the province will “smarten up.” He estimates the increased minimum wage will set his not-for-profit back over $60,000.
When asked how he dealt with last year’s increase to minimum wage, Brown said most agencies, including his, were able to make minor tweaks to their budget lines, but that is no longer an option.
“The wage increase a year ago swallowed up any excess dollars that we might have had,” explained Brown. “There’s nothing left to cut. It’s a direct hit to the bottom line.”
But this is just the latest in a series of PDD funding issues. Over the past year, the government has refused to fully fund new clients, said Brown.
Historically contracts with PDD service providers have included funds to cover overhead, supervision and staff training, but now the government will only pay for direct staff hours.
As a result, agencies have halted intake. Brown estimates he has had to turn away at least 12 potential clients.
“We have capacity. We would love to provide more services, but only if we’re funded for it,” said Brown.
On Monday, PC leadership hopeful and Calgary-North West MLA Sandra Jansen asked the Minister of Human Services Irfan Sabir about minimum wage funding for PDD service providers. She was critical considering increasing minimum wage to $15 per hour has been the NDP’s major platform.
“Minister did you forget to budget the minimum wage increase for PDD service providers? If not, why doesn’t the minister believe that disability workers deserve a minimum wage?” asked Jansen.
Sabir replied he was working with an advisory committee on how to fund the additional costs.
The minister did not reply to a request for comment.
