Niagara’s living wage climbs
Amount adjusted to $17.99 an hour to support family of four
The gap is growing.
As the provincial government works to hold the minimum wage to $14 an hour, Niagara Poverty Reduction Network has increased its estimate of how much it costs to live in Niagara.
The organization increased its “living wage” for the region to $17.99 an hour — 42 cents more than its previous figure that conservatively indicates what a full-time worker requires in order to cover the costs of living for a family of four.
“It’s up about 2.3 per cent,” said the organization’s chair Glen Walker, attributing the hike to the increasing cost of rent and other expenses.
The formula used to calculate the living wage was also changed. It’s now based on a 35-hour work week, rather than 40 hours.
“It might have been a little bit less if we hadn’t adjusted the formula,” Walker said.
Nevertheless, he said the minimum wage is lagging further behind the hourly wage needed for families to meet expenses.
“There is a gap and it is growing,” Walker said.
Because the provincial government introduced legislation to eliminate the January 2019 minimum wage increase to $15 an
hour — capping it at almost $4 less than Niagara’s living wage — Walker said “people are going to be slipping backwards.”
Businesses, however, can choose to provide even the lowest-paid workers enough money to make ends meet. So far, seven Niagara companies and organizations have been certified as living wage employers.
Walker said one of the top issues identified by business owners at the recent Niagara Economic Summit was the recruitment and retention of skilled workers.
“This would be a great way to retain your staff, certainly at the lower end of your organization — saying ‘We are a living wage provider,’” he said.
He also said offering a living wage is “a great tool to say ‘We’re responsible employers and we really value our people.’”
He said it makes more sense to pay workers enough that they won’t want to leave.
“We’re hoping more businesses will think of it that way, in terms of ‘How do we tackle this recruitment issue?’ and the same time say ‘Do we really want our people struggling and living in poverty?’”
The bulk of costs included in the living wage calculation — about 72 per cent — are for housing, child care, transportation and food.
Other expenses including clothing, extended medical insurance, continuing adult education and items such as communication, family outings and local recreation are also factored into the calculation.
Allan.Benner@ niagaradailies.com 905-225-1629 | @abenner1