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Working for a Living Wage : Making Paid Work Meet Basic Family Needs in Vancouver and Victoria
by: Tim Richards, Marcy Cohen, Seth Klein and Deborah Littman
Co Published by the Canadian Center for Policy Alternatives, First Call: BC Child and Youth Advocacy Coalition, and the Community Social Planning Council of Greater Victoria. September 2008
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Working for a living wage 2010: making paid work meet basic family needs in Metro Vancouver
by: Tim Richards, Marcy Cohen and Seth Klein
Published by the Canadian Centre for Policy Alternatives BC Office
Working for a low wage, particularly when you are trying to raise a family, makes daily living difficult. Decisions are tough. Do families pay the rent, heat the house or buy food? When you work for a low wage, the possibility of making ends meet becomes a daunting task. According to these authors, the consequences of these decisions often lead to debt, anxiety and health issues. Furthermore, family and community time are affected as parents often have to work multiple jobs just to provide the basic necessities.
Working harder to fall farther behind is a phenomenon that many
families struggle across Canada. What makes BC different from the rest
of Canada, however, is that despite a strong economy, it is one of two
provinces that experienced a drop in median wages over a 5 year period. A drop in median wages results in higher child poverty. BC is the only
province where child poverty was higher in 2006 than in 1997.
Child Poverty
Child poverty is a grave concern. The sad reality is that there is
at least one adult in a family living in poverty has a full time job.
The problem is exacerbated by low wages. Research shows that families
embroiled in poverty have higher stress levels, higher incidences of
poor health and become chronic users of health services, and thus are
unable to provide positive supportive environments for their children. Children in turn are more likely to experience behavioral and social
problems that can impede their academic and social development. Clearly, something has to be done to stem the tide of child poverty.
According to these authors, the solution is the introduction of a
living wage.
Introducing the Living Wage
A living wage is different from the minimum wage. Legislation has
typically called for a minimum wage that is high enough that an
individual who works full time for a full year is able to have an income
at the poverty line (which for most provinces in Canada would be about
$10.40). The minimum wage is an individual measure, whereas the living
wage is a family measure. A living wage is reflective of what a family
needs to survive based on actual living costs.
What's involved in a living wage and how is it calculated? A living
wage is comprised of family expenses (food, shelter, clothing),
employment income (wage required to live), and income from government
transfers and taxes (public services and infrastructure). This basic
formula is used to calculate a living wage:
Annual Family Expenses= Employment Income + Income from Government Transfers – Taxes
Essentially, a living wage is the wage that a family with children
would require in order to have an income that ensures that they can still meet basic needs, provide a positive growth environment for their
children, and be able to contribute to and participate as members in
their community. The living wage does not seek to undermine the minimum
wage; rather, it is a call for employers both from public and private
sector as well as municipalities to consider the costs required to live
and raise a healthy family.
Benefits of a Living Wage
The institution of a living wage is beneficial for both families
and employers. A living wage enables families to live with dignity and
have the means to contribute to a healthy society. Through a living
wage, poverty and financial strain are decreased. There is a greater
sense of social inclusion, and children are happier and more socially
adjusted. Employers can benefit from a living wage by having increased
productivity and efficiency and reduced turnover rates and absenteeism. Employers can also protect their public image and corporate reputation.
These reports also address different ways in which employers can
increase the living wage. As well as increasing the hourly wage,
employers can also provide employment and work place benefits. Benefits
such as health care, vision care and day care would increase the living
wage for families because families wouldn't have to carry these
expenses themselves. Conversely, the living wage would decrease for the
employer because the employer would provide these services. Employers
can also increase the living wage by addressing government programs and
in some cases calling for a reform so that the needs of families are
better met, thus reducing the strain not only on the families, but also
on employers and government programs.
These reports admit that the living wage is a relatively new concept.
Only a few provinces are beginning to adopt the idea of a living wage. The program is also gaining steam in the U.K and the U.S.
These reports thoroughly address an issue (and back it up with
substantiated easy to follow evidence) that is very relevant given the
state of our global economy. If parents can't provide for their
children, the issue of poverty will become a chronic cycle. All sectors
and citizens must work together to ensure that child poverty is
adequately resolved. The introduction of a living wage is a great
starting point.
Review by Michelle Harkness, ESPC Volunteer
Read more: "New Westminster, B.C., leads the way with Canada's first living wage bylaw" in This Magazine, November 2010
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Thursday, 17 May 2012 
