The following is an excerpt from "The Minimum Wage and Poverty: A Critical Evaluation"a> by conservative commentator Dr. Chris Sarlo of Nipissing University.

The Politics of the Minimum Wage

Australia was the first nation to have minimum wage legislation, in 1896. It was a reaction against the overwork and underpayment (referred to as “sweating”) that was apparently rampant in certain industries and trades. Britain and other European countries (France, Norway and Germany) followed with legislation of their own in the ensuing years.

In Canada, minimum wage legislation has its origin, to some extent, in the heightened interest, just after World War One, in human rights. But, principally, it arose out of concern about civil peace and order. Labour unrest was a major political issue at the time and governments around the world were receptive to measures that would improve conditions of employment as a way of promoting industrial stability.

Whittingham (1970), for example, points out that, following international pressure, the Royal Commission on Industrial Relations recommended, in 1919,

“that minimum wage laws be enacted in all the provinces to cover women, girls and unskilled labourers. The Commission noted the high cost of living in relation to wages as one of the chief causes of underlying industrial unrest and suggested that greater recognition be given to human rights and human aspirations, and that policies be adopted to allow the worker to obtain a fairer reward for his toil and a living wage.”

Ontario was the first province to act on these recommendations, passing its Minimum Wage Act in 1920. The legislation established a Minimum Wage Board that had a mandate to set and enforce rates of pay below which female workers could not be employed. The stated purpose of the Act was to “protect the physical, moral and intellectual well-being of female workers”. In the ensuing years, the other provinces established minimum wage laws.

The Great Depression presented a major problem for the minimum wage legislation. In the face of declining demand and falling prices of commodities, some employers asked the authorities for reductions in the minimum in order to avoid bankruptcy. In Ontario, the government dug in its heals and actually firmed up its legislation. Penalties for employers not in compliance were increased; the replacement of women by men receiving less than the female minimum was prohibited; and, in 1936, it was made an offense for an employee and employer from entering into any agreement whereby the employee would receive lees that the stipulated minimum wage.

In 1937, the minimum wage law in Ontario was extended to men, but floor rates for male workers were not ordered until 1963, 26 years after the enabling legislation was passed. In that year, the male minimum wage was set at a higher rate than that for women.