In the first initiative of its kind in Canada, the Yukon Employment Standards Board announced today that annual increases to the territory's minimum wage will be based on the Consumer Price Index (CPI).

The board, the authority over the minimum wage, also announced the wage will jump from the current $7.20-an-hour to $8.25-an-hour effective May 1.

The CPI is produced by Statistics Canada as an indicator of the consumer prices encountered by Canadians. It's obtained by calculating, on a monthly basis, the cost of a fixed 'basket' of commodities purchased by a typical Canadian.

CPI increases to the Yukon minimum wage are scheduled to occur on April 1 every year following this year's wage boost to $8.25.

The Yukon's last minimum wage increase was in 1998, when it was bumped from $6.86 to its current level of $7.20.

The average annual income in Yukon is just over $43,000.

Board chair Joie Quarton told reporters this morning the $8.25 figure was reached after broad consultation with Yukoners and will again be reviewed this fall to ensure the May 1 hike is sufficient.

'We heard from approximately 90 Yukoners on this issue,' she said.

'The minimum wage rate affects many people, directly and indirectly, and through this consultation process we heard a range of viewpoints both in favour and against increasing the minimum wage.

'The overwhelming response, including from employers, was in support of increasing the minimum wage.'

According to the board, minimum wage increases have been on an ad-hoc basis, often leading to a reduction in the value of a worker's hourly wage over time.

'The current minimum wage of $7.20 represents 1998 dollars, because inflation has not been reflected in the wage since December 1997,' the board says.

'In terms of purchasing power, Yukon's minimum wage has contracted by 13.1 per cent in relation to the increase from January 1998 to December 2005. In real dollars, workers earning the minimum wage of $7.20 (per hour) are actually earning $6.26 when the effects of inflation are considered.'

Last year, Yukon Anti-Poverty Coalition members said they wanted the territory's minimum wage to go up to $10 an hour.

Coalition members maintain that a wage of $10 an hour is the minimum wage required to keep a low-income worker above the poverty line.

Dale Kozmen, the Yukon goverment's director of consumer and safety services, told reporters the government supports the wage increase.

Kozmen said at a recent labour conference Outside, other Canadian jurisdictions showed an interest in the Yukon's initiative.

'The people in Ontario said that they are going to monitor this,' he said.

According to an information release from the Yukon government, women and students are the most likely to occupy jobs that pay minimum wage.

'Nationally, one in 25 Canadian employees work at or below the minimum wage set in their jurisdiction.

'Overall, individuals working at or below the minimum wage tend to be women, young people, students and part-time workers. More than half are over the age of 19 and of the workers who are under 19, more than 75 per cent attend school full- or part-time.

'Twice as many women as men earn minimum wage, and about five per cent of minimum wage earners are single parents.'

In reaching the decision, according to the board, a number of Yukoners were consulted.

'Advertisements were placed in local newspapers and on local radio requesting written comments from interested parties. In addition, posters were put in strategic locations throughout Yukon.

'From this process, the board received a total of 91 responses from employers, employees, business owners and other stakeholders. In particular, the other stakeholders included organizations speaking on behalf of low-income earners and those living in poverty.'

Responses, board information states, also included submissions from the Yukon Federation of Labour, the Yukon Family Services Association, the anti-poverty coalition and the Whitehorse Medical Clinic.