Living Wage Hamilton

Dr Don Wells from McMaster spoke on Living Wages, Better Jobs, Economies, Families and Communities. The idea of a  Living Wage is being promoted in Hamilton by McMaster Community Poverty Initiative, the Hamilton Round Table on Poverty Reduction, The Hamilton Community Foundation, Social Planning Research Council and Workplace Planning Hamilton.

 

There is a perception that we are returning to the “dirty 30’s” in terms of the degree of income inequality. A living wage is targeted at working people who are below the poverty line and is based on local costs for food, rent, transportation and prescriptions. It does not cover things like saving for retirement, pets, holidays etc. In Hamilton there are approximately 30,000 working poor, 50% of whom have children. Calculations suggest that a living wage is $14.95/hr compared to the current minimum wage of $10.25/hr. These calculations can be seen at www.livingwagehamilton.ca

 

We heard about the barriers to a living wage, experience in US and UK and some of the benefits to business and the community.

Barriers include existing contracts and the need to maintain pay differentials. US experience has 140 municipalities adopting this concept and none then abandoning it. If Hamilton were to adopt it, we would be the first large City in Canada. Benefits to employers include less turnover, absenteeism,  recruitment and training costs and a perceived improvement in corporate social responsibility. Communities benefit through the economic multiplier effect as people spend their extra pay, there are fewer stressed two job parents who cannot care for their kids and fewer kids grow up suffering inherited job insecurity and health problems. There is less need for food banks, lower healthcare costs, a more vibrant econmomy and a better investment environment.

 

Hamilton has consultations underway and City staff are research the costs to the City. In recognition of paying a living wage, companies can be accredited silver (full time employees covered) , gold (plus part time employees) and platinum (plus contract employees). We are asked to learn more, visit the website and if discussion required to contact Tom Cooper, Director of the Round Table.