THUNDER BAY – It won’t cost a cent, but city councillors still wanted a bit more information before signing on to support a local “living wage” campaign.
The City of Thunder Bay pays its full-time employees over $16.30 per hour, meaning it already meets the criteria to join a living wage campaign organized by the Lakehead Social Planning Council.
Still, the LSPC said at a Monday council meeting that the city’s participation would lend symbolic weight, and could pave the way to guaranteeing the city’s part-time workers and contractors a living wage down the road.
Unlike the minimum wage, LSPC social researcher Bonnie Krysowaty told councillors, the living wage is calculated to be enough to meet people's basic needs.
“It enables people to thrive and not have to make choices between internet or food each month, or decide if they should pay their phone bill or their hydro bill,” she said. “Minimum wage does not allow for that – it keeps people living in poverty.”
Joining the living wage campaign is one of four recommendations the LSPC made while presenting its annual poverty reduction report Monday (the others were to keep funding the poverty reduction strategy, support a tiny homes project, and incorporate the strategy’s recommendations into city decision-making).
The LSPC is the lead agency for the strategy, which is currently chaired by Coun. Aldo Ruberto.
The at-large councillor expressed his support for the LSPC’s call, moving a motion for a report by Jan. 24 on the possibility of joining the campaign. He argued a living wage guarantee will ultimately pay for itself through economic stimulation and reduction of anti-poverty spending.
“When we say we have to ‘invest’ in a living wage, we’re actually going to save dollars in the long run,’ he said. “The City of Thunder Bay already provides this living wage, so I don’t see any obstacles in the way.”
The LSPC made a previous deputation to council in March encouraging the city to join, but no formal action came of it.
The agency worked with the Ontario Living Wage Network and academic researchers to calculate Thunder Bay's local living wage of $16.30, based on the cost of living for a local family of four, with two parents working full-time.
The living wage is different in each community, ranging from $16.20 in Sault Ste. Marie to $22.08 in Toronto.
Those stack up against a provincial minimum wage of $14.35, which the Ford government has said it will raise to $15 on Jan. 1. The government previously cancelled a planned increase to $15 in 2019, shortly after it was elected.
The local campaign has grown slowly, signing up a handful of employers including the Kinna Aweya Legal Clinic, Wequedong Lodge, ITEC 2000, and Brick Host so far.
Employers can join the campaign's second level by paying all employees, including part-time and casual, the living wage, and become “champions” by requiring contractors and caterers to offer a living wage to their own employees.
Coun. Mark Bentz questioned why part-time workers wouldn't qualify.
“Many people have [several] jobs to support a household, and they’re not going to experience this uptick in wage,” he said.
Krysowaty said simply joining the campaign is a major “first step,” but that the LSPC advocates for members to eventually extend the living wage further.
Other city councillors were more hesitant. Coun. Brian Hamilton feared higher wages would drive up costs, hurting others on limited incomes, as well as small businesses.
“My biggest worry is often seniors – we have many, many seniors in our community living at or below the poverty line, struggling,” he said. “I’m really worried about the flow-through costs of a living wage campaign… From the lens I’m looking through, this is a bit of a poison fruit potentially, even though it sounds great.”
Coun. Peng You said while a living wage could put more money in people’s pockets, he worried how they’d spend it.
“Regardless of how much we make, if people don’t manage the money right, [they’re] still living in poverty,” he said.
Krysowaty responded that while budgeting is important, the point of the campaign was to point out that earning below a living wage makes it all but impossible to meet basic needs.
“With all respect, when we’re asking people to budget with $1,000 a month and their bills are $2,000 a month, it’s impossible,” she said. “People living in poverty find it insulting when we ask them to budget better, because there just isn’t the money to budget.”
Ruberto’s motion to seek a report was passed unanimously Monday, with councillors Oliver and Fraser absent, and Coun. Andrew Foulds recusing himself over a family member employed by the city.
