| A surprisingly high number of Calgarians are struggling to make ends meet in the midst of a major economic boom and it’s time to do something about it, says Ramona Johnston, manager of Vibrant Communities Calgary (VCC).
According to new data from Statistics Canada, 112,200 Calgarians (one in four employed Calgarians) made less than $10 an hour last year and 23,100 Calgarians earned less than $7 an hour. Almost half of Calgarians earning under $10 were over the age of 25, and of those, 62 per cent were women.
"Unfortunately, it’s not a surprise for those of us working in this sector," says Johnston.
"We know that many, many Calgarians are struggling, despite the prosperity of our province and our city right now, and this really shows that wages are still suppressed in Calgary and we would certainly like to see some improvements in that area."
VCC was founded by the United Way and MCC Employment Development and its objective is to come up with long-term solutions to address systemic poverty. Johnston says the statistics refute the argument that most low-income earners are teenagers or university students "who don’t really need the money anyway."
They also point to ongoing income inequality for women.
"We continue to see this problem in employment equity and pay equity for women and it’s a serious issue," says Johnston.
The Statistics Canada data is from a labour force survey and doesn’t look at overall family income, so not all Calgarians earning less than $10 an hour are necessarily living in poverty. But Johnston says the statistics are still relevant.
"We feel that no one should make less than $10 an hour. People should be able to support themselves and, of course, there are related issues around domestic violence, and the fact this keeps some women trapped in poverty and trapped in domestic violence situations if they’re not able to support themselves independently."
Johnston says the increase in the minimum wage to $7 will help low-income earners, but she says single Calgarians with no dependents would have to earn at least $10 an hour, or $20,337 a year, to be above the Low Income Cutoff, a Statistics Canada measurement that is often used to define poverty.
VCC has started a "living wage" campaign to try and raise the wage for all Calgarians to $10 an hour or higher. The first step is convincing city council to adopt a living wage policy, says Johnston.
"All employers in receipt of city contracts, whether they were to supply material goods or services, would also have to pay a living wage," she explains.
Johnston says city administration is studying this as part of a new policy that wouldn’t allow city council to buy goods and services created through sweatshop labour.
Paul Warren, strategic procurement officer for the City of Calgary, says city administration is working on a new environmental and ethical procurement policy which could include "living wage" provisions. But Warren says the policy is still in the early stages of development and still has to go to city council for approval.
VCC has also started an education campaign to try and convince businesses to pay employers at least $10 an hour. "This is not a minimum wage campaign. We’re trying to encourage employers to raise low wages voluntarily," she says.
Johnston says studies in the United States, where various living wage campaigns are underway, have shown that providing employees with decent wages reduces staff turnover, reduces training costs, reduces employee theft and increases customer satisfaction.
"There really isn’t a cost to the bottom line of an employer who chooses to engage in progressive practices and raise wages. There might be in the short term, but in the long run your business will actually thrive," she says.
VCC is looking for progressive employers in Calgary who are willing to speak out about the benefits of paying their employees living wages.
"If we could help spread the wealth that we’re now experiencing out amongst all Calgarians and level the playing field a bit so that everyone had equal opportunities to the prosperity that many of us are now experiencing, it would be a better city for all of us," says Johnston.
"This is something that we all benefit from…. We know that right now a lot of our tax dollars are going towards social support programs and, in effect, we are subsidizing businesses and employers that pay low wages through our tax system." |
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