Spokes
01-06-2010, 06:53 PM
Region of Waterloo Considers Living Wage
Recapping:
'It is the right thing to do'
Region considers pros and cons of introducing a living-wage policy
August 18, 2008
Frances Barrick
RECORD STAFF
WATERLOO REGION - Waterloo Region's practice of contracting out work may cost more if it adopts a living-wage policy to help fight poverty.
The principle behind living wage is that workers should be paid enough to live without needing social assistance or going to food banks.
While 125 American cities have some form of living-wage policy, no Canadian municipality has come on-board. Tomorrow, regional councillors will receive a staff report recommending that the living-wage rate for the region be $13.62 an hour. Ontario's minimum wage is $8.75 an hour. It will rise to $10.25 in 2010.
"It is an important issue because most Canadians believe that if you work full time, you should be paid enough to live on," said Brice Balmer, chair of Opportunities Waterloo Region, a group that advocates solutions to poverty.
The report says council will have to calculate the cost of a living-wage policy before deciding whether companies that supply goods and services to the region will be required to pay this living wage.
There would be no additional cost if a living-wage policy pertained only to regional employees as they already make more than $13.62 an hour, the report says. Only summer and co-op students may earn less.
But there is a cost if the region decides to extend the policy to contracted-out work. For example, the region spends $1.7 million a year to contract out janitorial services. Cleaning companies pay workers about $9 an hour.
These costs could jump to $2.5 million if companies doing business with the region must pay their employees a living wage. "The government has a responsibility to make sure that people who are working for the government . . . are being paid a fair wage," Balmer said.
Opportunities Waterloo Region calculated the hourly rate of $13.62 based on the local cost of housing, food, transportation, clothing and other expenses. The $13.62 rate "is an estimated amount that we believe a person can live modestly on," said Mary MacKeigan, executive director of Opportunities Waterloo Region.
A person working 40 hours a week at that rate would earn a gross annual salary of $28,333.
Calgary and Hamilton and the Town of Pelham in Niagara Region are also considering living-wage policies
A study of 20 American cities with living-wage policies found that budget forecasts significantly overestimated the actual cost of implementation. Contract costs for these cities increased by less than 0.1 per cent and companies bidding on municipal work absorbed the additional cost, the regional report said.
In 1994, Baltimore became the first American city to embrace living wage.
"It has been completely affordable," said Sheldon Shugarman, executive director of Baltimore's wage commission. "The impact was less than one per cent," he said.
Proponents of living wage say it reduces poverty, decreases absenteeism and gives workers a greater sense of self-worth and connection to their communities. It would also provide a level playing field in the bidding process as it would prevent companies from paying low wages to keep costs down to win municipal contracts.
In Calgary, where living wage has become a contentious issue, small businesses argue it would hurt the people it is supposed to help as decreased profits would mean fewer jobs and more layoffs, said Derek Cook, a social planner with the city.
The moral issue, Cook said, is whether "public money should be going to companies that are paying wages low enough that these people working are really living in poverty."
Art Sinclair, director of economic development for the Chamber of Commerce of Kitchener-Waterloo, said while his knowledge of living wage is limited, he said the chamber is always interested in exploring poverty-cutting options.
The region plans to gather public input on the issue and Sinclair said the chamber would want to participate.
Latest census data shows that while local families enjoy the seventh-highest incomes in 2005, about 48,000 residents live in poverty. In 2001, there were 5,110 people in the region working full-time who were considered to be living in poverty, the report said.
As executive director of Opportunities Waterloo Region, MacKeigan said she's often asked why governments should implement fair wage policies.
"I say because it is the right thing to do," she said.
fbarrick@therecord.com
http://news.therecord.com/article/400632 (http://news.therecord.com/article/400632)
Region takes cautious stance on living wage
August 20, 2008
Jeff Outhit
RECORD STAFF
WATERLOO REGION - Cautious regional councillors are moving slowly toward hiking the minimum wage for regional employees.
Under a 'living wage' proposal, people working for regional taxpayers, on staff or contract, would have to be paid at least $13.62 an hour. Regional employees already earn this hourly wage but some contracted employees, such as janitors, do not.
Ontario's minimum wage is $8.75, rising to $10.25 in 2010.
The living wage, calculated to sustain a single adult, is intended to fight poverty by putting upward pressure on wages.
"I think it's a great opportunity to reduce poverty in our community with a minimal impact on taxpayers," said Coun. Sean Strickland, of Waterloo.
Councillors expressed support for the concept yesterday, but said they want more research before approving the plan. There's also concern about public reaction.
Coun. Jane Brewer, of Cambridge, asked if this should be a provincial initiative. "I'm struggling with this," she said.
Regional staff will develop a plan to research implications on taxpayer costs and jobs. They will propose ways to consult with the public.
"We are not talking about imposing a mandatory minimum wage in the region," Chair Ken Seiling said.
Many U.S. cities have adopted living wage policies but no Canadian city has embraced it.
jouthit@therecord.com
http://news.therecord.com/article/401791 (http://news.therecord.com/article/401791)
Regional councillors not ready for living-wage policy
October 22, 2008
Frances Barrick
RECORD STAFF
WATERLOO REGION - It will be at least a year before Waterloo regional council decides whether it will adopt a living-wage policy for people doing business with the region.
Yesterday, councillors agreed to spend $52,500 to hire a consultant and planner to a do an in-depth study of the ramifications of adopting such a policy. It is expected to take a year to complete.
"I need a lot more information before I make a decision," Coun. Jim Wideman of Kitchener said in supporting a thorough review of the issue.
Under a living-wage policy, people working for the region, either on staff or on contract, would have to be paid at least $13.62 an hour. Regional employees already earn this hourly rate, but some contracted employees, such as janitors, do not.
Ontario's minimum wage is $8.75, and will rise to $10.25 in 2010.
While 125 cities in the United States have some form of living-wage policy, no Canadian municipality has adopted the principle. Waterloo Region could be the first.
Coun. Tom Galloway of Kitchener said there is some "angst" in the community about a policy, which is why it's essential councillors have all the facts before proceeding.
Coun. Sean Strickland of Waterloo said a living wage would only pertain to people doing business with the region.
"We have no capacity or ability to impose a living wage for the entire community," Strickland said.
Some of the issues the study will consider include:
Whether companies should be required to pay a living wage to its employees as a term of its contract with the region, or whether the region give preference in the bidding process to companies that pay living wages
The impact of a living wage for non-profits businesses and for-profit businesses
The impact on unions
Whether a living wage would affect economic development or competitiveness
The multiplier effect on other businesses if the region adopted a living-wage policy.
The study would include a survey of some of the region's contractors, as well as consultation with anti-poverty groups, local municipalities, employer associations and the chambers of commerce.
The study is to be completed September 2009. Council will then decide whether it wants to implement a living-wage policy.
fbarrick@therecord.com
http://news.therecord.com/article/432300 (http://news.therecord.com/article/432300)
Region wants public opinion on concept of 'living wage'
April 01, 2009
Frances Barrick
RECORD STAFF
WATERLOO REGION - Regional councillors agreed yesterday to gauge public opinion on the concept of a living wage.
"By engaging in community consultation, it doesn't mean we are adopting a living wage," Coun. Sean Strickland, chair of council's community services committee, told councillors.
And if the discussion by councillors yesterday is any indication, adopting a living wage policy for Waterloo regional government will be a hard sell.
Four regional councillor voted against the public consultation process, some saying no more time should be spent by staff studying an issue they oppose.
"I am becoming more and more concerned that we are being drawn into this. There is an assumption that we are going to do it," said Count. Jane Brewer of Cambridge, adding she is opposed to a living wage.
A living wage is the amount of money a single adult working full-time would need to live above the poverty line.
Locally, the living wage is $13.62 an hour without benefits. This is higher than Ontario's minimum wage of $9.50 an hour.
The region is the second municipality to study a living wage. Last month, Calgary became the first Canadian city government to adopt such a policy for its employees.
The region has been studying the concept for about a year. Public consultation is the last stage and will include public meetings and surveys. Council is slated to decide this fall whether to adopt a living wage policy.
Council will present four options to the public which are:
* Do nothing
* Implement a living wage for regional employees only. Like Calgary, this would be a symbolic move as regional employees already earn more than $13.62 an hour.
* Give preference to companies wanting to do business with the region to those that pay a living wage.
* Make it mandatory for companies to pay a living wage if they want to get regional business.
The last two options would cost regional taxpayers between $644,500 and $829,500 to pay 200 people, representing 70 per cent of all service work contracted by the region, a living wage, according to a regional staff report.
Currently, security guards working at regional buildings earn living wages, but employees who provide services such as housekeeping, cafeteria and groundskeeping make less than $13.62 an hour.
Brice Balmer, of Opportunities Waterloo Region, an anti-poverty group that asked regional council to study living wage, told councillor yesterday that there is a lot of "misinformation floating around the region about what living wage is."
A living wage would only pertain to the regional government, he said. It is not a rate that businesses in the region must pay their employees, unless they do business with the region.
But a living wage benefits the region in less reliance on food hampers and social assistance, he said.
"It is taking people out of poverty so the demand for social services decreases," added Linda Terry, executive director of the Social Planning Council of Cambridge.
fbarrick@therecord.com
http://news.therecord.com/article/513184 (http://news.therecord.com/article/513184)
Recapping:
'It is the right thing to do'
Region considers pros and cons of introducing a living-wage policy
August 18, 2008
Frances Barrick
RECORD STAFF
WATERLOO REGION - Waterloo Region's practice of contracting out work may cost more if it adopts a living-wage policy to help fight poverty.
The principle behind living wage is that workers should be paid enough to live without needing social assistance or going to food banks.
While 125 American cities have some form of living-wage policy, no Canadian municipality has come on-board. Tomorrow, regional councillors will receive a staff report recommending that the living-wage rate for the region be $13.62 an hour. Ontario's minimum wage is $8.75 an hour. It will rise to $10.25 in 2010.
"It is an important issue because most Canadians believe that if you work full time, you should be paid enough to live on," said Brice Balmer, chair of Opportunities Waterloo Region, a group that advocates solutions to poverty.
The report says council will have to calculate the cost of a living-wage policy before deciding whether companies that supply goods and services to the region will be required to pay this living wage.
There would be no additional cost if a living-wage policy pertained only to regional employees as they already make more than $13.62 an hour, the report says. Only summer and co-op students may earn less.
But there is a cost if the region decides to extend the policy to contracted-out work. For example, the region spends $1.7 million a year to contract out janitorial services. Cleaning companies pay workers about $9 an hour.
These costs could jump to $2.5 million if companies doing business with the region must pay their employees a living wage. "The government has a responsibility to make sure that people who are working for the government . . . are being paid a fair wage," Balmer said.
Opportunities Waterloo Region calculated the hourly rate of $13.62 based on the local cost of housing, food, transportation, clothing and other expenses. The $13.62 rate "is an estimated amount that we believe a person can live modestly on," said Mary MacKeigan, executive director of Opportunities Waterloo Region.
A person working 40 hours a week at that rate would earn a gross annual salary of $28,333.
Calgary and Hamilton and the Town of Pelham in Niagara Region are also considering living-wage policies
A study of 20 American cities with living-wage policies found that budget forecasts significantly overestimated the actual cost of implementation. Contract costs for these cities increased by less than 0.1 per cent and companies bidding on municipal work absorbed the additional cost, the regional report said.
In 1994, Baltimore became the first American city to embrace living wage.
"It has been completely affordable," said Sheldon Shugarman, executive director of Baltimore's wage commission. "The impact was less than one per cent," he said.
Proponents of living wage say it reduces poverty, decreases absenteeism and gives workers a greater sense of self-worth and connection to their communities. It would also provide a level playing field in the bidding process as it would prevent companies from paying low wages to keep costs down to win municipal contracts.
In Calgary, where living wage has become a contentious issue, small businesses argue it would hurt the people it is supposed to help as decreased profits would mean fewer jobs and more layoffs, said Derek Cook, a social planner with the city.
The moral issue, Cook said, is whether "public money should be going to companies that are paying wages low enough that these people working are really living in poverty."
Art Sinclair, director of economic development for the Chamber of Commerce of Kitchener-Waterloo, said while his knowledge of living wage is limited, he said the chamber is always interested in exploring poverty-cutting options.
The region plans to gather public input on the issue and Sinclair said the chamber would want to participate.
Latest census data shows that while local families enjoy the seventh-highest incomes in 2005, about 48,000 residents live in poverty. In 2001, there were 5,110 people in the region working full-time who were considered to be living in poverty, the report said.
As executive director of Opportunities Waterloo Region, MacKeigan said she's often asked why governments should implement fair wage policies.
"I say because it is the right thing to do," she said.
fbarrick@therecord.com
http://news.therecord.com/article/400632 (http://news.therecord.com/article/400632)
Region takes cautious stance on living wage
August 20, 2008
Jeff Outhit
RECORD STAFF
WATERLOO REGION - Cautious regional councillors are moving slowly toward hiking the minimum wage for regional employees.
Under a 'living wage' proposal, people working for regional taxpayers, on staff or contract, would have to be paid at least $13.62 an hour. Regional employees already earn this hourly wage but some contracted employees, such as janitors, do not.
Ontario's minimum wage is $8.75, rising to $10.25 in 2010.
The living wage, calculated to sustain a single adult, is intended to fight poverty by putting upward pressure on wages.
"I think it's a great opportunity to reduce poverty in our community with a minimal impact on taxpayers," said Coun. Sean Strickland, of Waterloo.
Councillors expressed support for the concept yesterday, but said they want more research before approving the plan. There's also concern about public reaction.
Coun. Jane Brewer, of Cambridge, asked if this should be a provincial initiative. "I'm struggling with this," she said.
Regional staff will develop a plan to research implications on taxpayer costs and jobs. They will propose ways to consult with the public.
"We are not talking about imposing a mandatory minimum wage in the region," Chair Ken Seiling said.
Many U.S. cities have adopted living wage policies but no Canadian city has embraced it.
jouthit@therecord.com
http://news.therecord.com/article/401791 (http://news.therecord.com/article/401791)
Regional councillors not ready for living-wage policy
October 22, 2008
Frances Barrick
RECORD STAFF
WATERLOO REGION - It will be at least a year before Waterloo regional council decides whether it will adopt a living-wage policy for people doing business with the region.
Yesterday, councillors agreed to spend $52,500 to hire a consultant and planner to a do an in-depth study of the ramifications of adopting such a policy. It is expected to take a year to complete.
"I need a lot more information before I make a decision," Coun. Jim Wideman of Kitchener said in supporting a thorough review of the issue.
Under a living-wage policy, people working for the region, either on staff or on contract, would have to be paid at least $13.62 an hour. Regional employees already earn this hourly rate, but some contracted employees, such as janitors, do not.
Ontario's minimum wage is $8.75, and will rise to $10.25 in 2010.
While 125 cities in the United States have some form of living-wage policy, no Canadian municipality has adopted the principle. Waterloo Region could be the first.
Coun. Tom Galloway of Kitchener said there is some "angst" in the community about a policy, which is why it's essential councillors have all the facts before proceeding.
Coun. Sean Strickland of Waterloo said a living wage would only pertain to people doing business with the region.
"We have no capacity or ability to impose a living wage for the entire community," Strickland said.
Some of the issues the study will consider include:
Whether companies should be required to pay a living wage to its employees as a term of its contract with the region, or whether the region give preference in the bidding process to companies that pay living wages
The impact of a living wage for non-profits businesses and for-profit businesses
The impact on unions
Whether a living wage would affect economic development or competitiveness
The multiplier effect on other businesses if the region adopted a living-wage policy.
The study would include a survey of some of the region's contractors, as well as consultation with anti-poverty groups, local municipalities, employer associations and the chambers of commerce.
The study is to be completed September 2009. Council will then decide whether it wants to implement a living-wage policy.
fbarrick@therecord.com
http://news.therecord.com/article/432300 (http://news.therecord.com/article/432300)
Region wants public opinion on concept of 'living wage'
April 01, 2009
Frances Barrick
RECORD STAFF
WATERLOO REGION - Regional councillors agreed yesterday to gauge public opinion on the concept of a living wage.
"By engaging in community consultation, it doesn't mean we are adopting a living wage," Coun. Sean Strickland, chair of council's community services committee, told councillors.
And if the discussion by councillors yesterday is any indication, adopting a living wage policy for Waterloo regional government will be a hard sell.
Four regional councillor voted against the public consultation process, some saying no more time should be spent by staff studying an issue they oppose.
"I am becoming more and more concerned that we are being drawn into this. There is an assumption that we are going to do it," said Count. Jane Brewer of Cambridge, adding she is opposed to a living wage.
A living wage is the amount of money a single adult working full-time would need to live above the poverty line.
Locally, the living wage is $13.62 an hour without benefits. This is higher than Ontario's minimum wage of $9.50 an hour.
The region is the second municipality to study a living wage. Last month, Calgary became the first Canadian city government to adopt such a policy for its employees.
The region has been studying the concept for about a year. Public consultation is the last stage and will include public meetings and surveys. Council is slated to decide this fall whether to adopt a living wage policy.
Council will present four options to the public which are:
* Do nothing
* Implement a living wage for regional employees only. Like Calgary, this would be a symbolic move as regional employees already earn more than $13.62 an hour.
* Give preference to companies wanting to do business with the region to those that pay a living wage.
* Make it mandatory for companies to pay a living wage if they want to get regional business.
The last two options would cost regional taxpayers between $644,500 and $829,500 to pay 200 people, representing 70 per cent of all service work contracted by the region, a living wage, according to a regional staff report.
Currently, security guards working at regional buildings earn living wages, but employees who provide services such as housekeeping, cafeteria and groundskeeping make less than $13.62 an hour.
Brice Balmer, of Opportunities Waterloo Region, an anti-poverty group that asked regional council to study living wage, told councillor yesterday that there is a lot of "misinformation floating around the region about what living wage is."
A living wage would only pertain to the regional government, he said. It is not a rate that businesses in the region must pay their employees, unless they do business with the region.
But a living wage benefits the region in less reliance on food hampers and social assistance, he said.
"It is taking people out of poverty so the demand for social services decreases," added Linda Terry, executive director of the Social Planning Council of Cambridge.
fbarrick@therecord.com
http://news.therecord.com/article/513184 (http://news.therecord.com/article/513184)