City council wary of living wage concept

Regina city councillors are questioning the potential implications of the municipality adopting a living wage policy.

Coun. Shawn Fraser put forward a motion at Monday’s city council meeting asking staff to examine the “cost, logistics and impact” of adopting a living wage policy. He wanted that information by the end of this year, in time for budget deliberations.

But his colleagues voted instead to push a report on the matter — and any decisions — to next year.

“Maybe I’m impatient,” said Fraser.

“I think it’s good for the city to take a leadership role in being the city’s best employer.”

The idea behind living wage is that salaries cover the actual basic costs for a family residing in a particular community. A Canadian Centre for Policy Alternatives (CCPA) report from 2014 set Regina’s living wage at $16.46 per hour. It is currently being recalculated.

By way of comparison, Saskatchewan’s minimum wage is $10.50 per hour.

Fraser’s motion called for the city to explore implementing a living wage for its direct employees — most of whom he believes are making it already — and any contracted workers.

The councillor thinks requiring a living wage could help with recruitment and retention. He said such a policy might level the playing field for contractors bidding on municipal work who offer a living wage already.

But Fraser’s year-end timeline made a few of his colleagues uneasy, as well as the thought of any legal implications.

“I need more information,” said Mayor Michael Fougere, calling bringing forward a recommendation forward for the 2017 budget “premature.”

“There are significant implications here.”

For one, he was worried about the policy being potentially discriminatory to contractors and suppliers. It could also mean a tax hike and affect the city’s competitiveness, he said.

The Canadian Federation of Independent Business (CFIB) shares the mayor’s concerns.

“We really do see such a policy as unrealistic and impractical,” said Marilyn Braun-Pollon, CFIB’s vice-president of prairie and agribusiness.

A survey the organization did of Saskatchewan small business owners found about three-quarters were opposed to a living wage policy. Main concerns, said Braun-Pollon, were pressure to increase labour costs for competitiveness’ sake and higher municipal government costs leading to tax increases.

The mayor added that the living wage issue might be “more comfortably situated” with the provincial and federal governments, something with which Fraser disagreed.

The mayor might want to check out other municipalities that have adopted this. It’s certainly well within the realm of municipal governance.

So does Simon Enoch. The director of the CCPA’s Saskatchewan office and co-author of the 2014 report on Regina’s living wage said, “The mayor might want to check out other municipalities that have adopted this. It’s certainly well within the realm of municipal governance.”

New Westminster and Port Coquitlam in British Columbia, as well as Cambridge, Ont., have implemented living wage policies. So, too, have more than 140 cities in the United States.

While Enoch said it would be great for Saskatchewan to adopt a living wage policy, the principle is rooted in community costs.

“If anything is a local issue, living wage is,” he said.

Enoch was “a little disappointed” that council voted to defer the report one year.

“It won’t take much research to show how beneficial this will be to workers and to the community,” he said.

“I would have liked to have seen more enthusiasm and uptake.”