Minimum wage review pleases labour head

The committee reviewing minimum wage in Newfoundland and Labrador says it's time for an increase.

According to a review by the Labour Relations Agency, hourly pay should rise in 2013.

The review that was released on Thursday said wage increases need to reflect the loss of purchasing power since 2010.

In addition to an initial increase, the committee is calling for annual adjustments starting in 2014.

The yearly adjustments would be based on the previous year's Consumer's Price Index and cost of living in the province.

Lana Payne, the head of the Federation of Labour, said increasing minimum wage is an important part of ensuring the fair treatment of everyone in the province.

"In a time of prosperity, we felt that we have to make sure that everybody benefits from that prosperity," Payne said. "Including low wage workers in our province."

While the minimum wage has not been increased since 2010, Payne said the previous increases have helped improve equality in the workplace.

"The minimum wage increases over the last decade have been a stunning succes in many, many ways," she said. "For example, in the sales and service sector, women have seen their wages increase about 70 per cent in the last decade.

"We've seen the gap between women and men in that sector narrow substantially."

One of the common complaints about increasing minimum wages is that it makes it more difficult to make more jobs.

However, Payne said the research data does not support this argument.

Provincial government will now be reviewing the recommendations.

Since 2005, the minimum wage has gone from $6 to $10 hourly.