Calculating a Living Wage For Vancouver
Next Living Wage Roundable Friday, May 9, 2008 from 9:00 - 11:30 am
More details at: First Call Website
Download Minutes of November 2007 Roundtable
Download Word version of this page
What is a Living Wage?
The Living Wage is an hourly rate of pay that enables a family of two parents and two children with seventy hours of paid employment per week to meet their basic needs and to participate in the civic/social life of their community.
Why Do We Need a Living Wage?
Decency at Work:
In his report to the federal government on proposed changes to the Federal Employment Standards legislation titled: Fairness at Work? Federal Labour Standards for the 21st Century, Commissioner Harry Arthurs made the following comments about what he referred to as “Decency at Work:
- Labour Standards should ensure that no matter how limited his or her bargaining power, no worker in the federal jurisdiction is offered, accepts or works under conditions that Canadians would not regard as “decent”.
- No worker should therefore receive a wage that is insufficient to live on
- be deprived of the payment of wages or benefits to which they are entitled;
- be subject to coercion, discrimination, indignity or unwarranted danger in the workplace;
- or be required to work so many hours that he or she is effectively denied a personal or civic life.
The Growing Gap in Incomes:
Although Canada’s economy has been very robust for the last several years only the top 20% of families (and primarily the top 10%) are doing better as a result of Canad’a improved economic performance
- debt levels have doubled for the poorest 20% of families between 1984 and 2005 – most of it non-mortgage related
- In the 1970s the bottom 50% of Canadians had 27% share of the total earnings in Canada. By 2004 the earnings of the bottom 50% of Canadians had slipped to only 20.5% of total earnings in Canada
- British Columbia has the highest child poverty rate in Canada
- 52% of children living in poverty in British Columbia live in families where at least one parent works full-time/full/year
Process For Developing A Living Wage Standard for the Lower Mainland
A community coalition of labour, academics, community groups, faith groups and professionals has been set up as the First Call Living Wage Roundtable and includes organizations such as:
• Family Services of Greater Vancouver
• Dieticians of Canada
• United Way of the Lower Mainland
• First Call
• Social Planning and Research Council of BC
• Vibrant Surrey
• Franciscan Sisters
• BC Federation of Labour
• Representatives of various ethnic communities
• Aboriginal communities
• Unions
The Canadian Centre for Policy Alternatives and First Call are sponsoring a Living Wage Calculation Project Team which has been set the objective of determining a Living Wage for the Lower Mainland region of British Columiba
This Living Wage Calculation Project Team includes:
• Marcy Cohen: Chair of the CCPA in BC
• Adrienne Montani: Provincial coordinator for First Call BC Child
and the Youth Advocacy Coalition
• Seth Klein: Executive Director of the CCPA BC
• Jenny Cleathero: Researcher at the United Way
• Michael Goldberg: Social Policy Researcher
• Paul Kershaw: Political Science Professor at UBC
• Steve Kerstetter: Social Policy Researcher
• Tim Richards: Senior Instructor, Faculty of Law – University of Victoria
• Mervyn Van Steinburg: Director of the Labour Participation Department
of the United Way of the Lower Mainland
• Alan Vigoda: Coordinator – Vibrant Surrey
• Andy Wachtel: Researcher, United Way of the Lower Mainland
• Jennifer Whiteside: Hospital Employees Union
• Jane Worton: Victoria Community Council
• Dan Zuberi: Sociology Professor, UBC
Principles Underlying the Calculation of a Living Wage:
1) Should enable working families to have an adequate but not affluent income
2) Promote social inclusion
3) Support healthy child development principles
4) Promote gender equality
5) Ensure that families are not under severe financial stress
6) Be a conservative, reasonable estimate
7) Engender significant and wide-ranging community support
8) Be a vehicle for promoting the benefits of social programs such as childcare
Assumptions and Methodology For Calculating a Living Wage:
1) based on a family of two parents and two children, aged 4 and 7 years
2) with paid employment for seventy paid hours per week
3) four year old child in full time day care, 7 year old in before and after school care
4) government transfers and taxes based on the 2007 tax year
5) figures based on the Statistics Canada Market Basket Measure
Estimated family expenses for 2007 Included in Calculations:
• Clothing and footwear
• Rent
• Utilities (Electricity & telephone)
• Insurance
• Transportation
• Childcare
• Medical Expenses
• Cushion of two weeks pay
• Parent education
• Modest recreation budget
Expenses Not Included:
• Owning a house
• Retirement savings
• Education savings
• Debt servicing
Living Wage Report Due in June:
The First Call Living Wage Roundtable will issue its report on a suitable living wage for the Lower Mainland of British Columbia in June of 2008.
Next Living Wage Roundable Friday, May 9, 2008 from 9:00 - 11:30 am
More details at: First Call Website
Download Minutes of November 2007 Roundtable
Download Word version of this page
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