More must be done to address cost-of-living crisis, says AFL president

EDMONTON – Today’s announcement by the Bank of Canada lowering interest rates by half a point is a good step, but more must be done to address the cost-of-living crisis, says Alberta Federation of Labour (AFL) president Gil McGowan.

“The Bank of Canada’s high interest rate policy has been bad medicine for working people. It punished workers with more expensive mortgages and priced others out of the housing market altogether, while leaving less money to spend on things like food and other essentials,” says McGowan. “So, the latest announcement from the Bank is welcome news. But more must be done, especially by our provincial government.”

“In Alberta, some of the largest price increases in the last few years have been on things directly within the jurisdiction of the UCP government, things like the cost of rent, electricity prices, auto insurance, tuition, and groceries. To date, the UCP government has not done enough to address these high prices,” says McGowan.

“The remedies are well known; there’s no need for further study. The UCP government could immediately bring in public auto insurance and save the average Albertan at least $800 a year. It could bring in rent controls to tamp down the increase in the cost of rentals, which has been the highest in the country. It could re-regulate the power system to get rid of the excess profit taking in the sector. It could cap tuition and introduce regulations to stop price gouging at the pumps and in grocery stores. The UCP government could have easily done any of these things, but instead chose to pick petty turf wars with the federal government over jurisdictional control.”

“The Bank of Canada dropped the interest rate in reaction to the decrease in the rate of inflation, but that doesn’t mean prices have gone down,” points out McGowan. “Many of the prices Albertans pay for essential items are the highest they’ve ever been,” McGowan said, indicating that increased wages are even more important than lower interest rates, when it comes to helping workers deal with higher costs.

“The UCP government can do something to offset high prices and that’s to give Alberta workers a raise. Currently, almost all of Alberta’s public-sector unions are bargaining with the government. Better wages are a simple way to deal with workers’ loss of purchasing power. The provincial government could also raise the minimum wage, which is now tied for the lowest in Canada. Raising the wage for Alberta’s lowest-paid workers would help them make ends meet.”

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MEDIA CONTACT:
Tony Clark
Director of Research, AFL
Email: tclark@afl.org