A Living Wage for Families First Call: BC Child & Youth Advocacy Coalition
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A Living Wage for Families
First Call: BC Child & Youth Advocacy Coalition
Columbia Institute Centre for Civic GovernanceFrom the Ground Up ConferenceMarch 7, 2009Adrienne Montani and Tim Richards
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What is a ‘Living Wage’?
Not a minimum wage, not legislated
Calculated for a family, not a single worker
Based on actual expenses in a given community, and taxes and gov’t benefits
Higher than the poverty line
The living wage call……
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The Need for a Living Wage For 5 years in a row, BC has had the highest
child poverty rate in Canada (21.9% in 2006, before tax)
54% of poor children in BC live in families where the adults work full-time/full-year or more.
Corporate social responsibility means paying a living wage. For those who want to end child poverty and ensure healthy child development, this is where “the rubber meets the road.”
Poverty as a social determinant of health
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Growing Inequality
Total Annual Income for Families with Children in BC
$0
$50,000
$100,000
$150,000
$200,000
$250,000
1993 1995 1997 1999 2001 2003 2005
Poorest Second Poorest Average Second Richest Richest
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Process for Developing a Living Wage
1. Brought together a group of academics, policy analysts, social partners and advocates to set a living wage
2. Outreach to stakeholders: First Call partner organizations and Living Wage Roundtables—social service groups, United Ways, faith communities; immigrant communities; union members, student and parent groups.
3. Focus groups with low income families and employers to receive feedback on and revise:
- assumptions in the calculation- the amount of the Living Wage
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Underlying Principles
The living wage enables the wages earners in a household to:
Feed, clothe and provide shelter for their family
Promote healthy child development
Participate in activities that are an ordinary element of life in a community
Avoid the chronic stress of living in poverty
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Assumptions and Methodology
The Living Wage is calculated for a family
of two parents and two children, aged 4 and 7 years;
with paid employment for seventy hours per week; estimated family expenses for 2007; and the four year old child in full time day care, 7 year
old in before and after school care and summer care.
Government transfers and taxes based on the 2007 tax year.
The family expenses are based in part on the HRSDC Market Basket Measure.
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Family Expenses
Monthly Annually %
1. Food 652.00 7,826.00 142. Clothing & Footwear 192.00 2,300.00 43. Shelter 1,259.00 5,104.00 274. Transportation 523.00 6,272.00 115. Other 570.00 6,835.00 126. Childcare 982.00 11,784.00 217. MSP Premiums 108.00 1,296.00 38. Non MSP Health Ex. 133.00 1,596.00 29. Contingency Amount 195.00 2,344.00 410. Parent Education 83.00 1,000.00 2Total 4,696.00 56,357.00 100
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What Is Not Included?
The Living Wage is modest in comparison to community standards. It does not allow the family to
own a house; save for retirement; save for their children’s education; or service debt The recreation/entertainment budget is
very modest
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Total Family Expenses
The two-parent, two-child family has total family expenses of:
$4,696 / month, or$56,357 / year
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The Amount of the Living Wage
For Metro Vancouver
= $16.74 per hour
based upon the above family expenses, and factoring in government transfers and government deductions.
($16.39/hour for Victoria)
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Formula for the Living Wage
Annual Income fromFamily = Employment +Expenses (Living Wage)
Income from EI and CPPGov’t Transfers - Premiums(CCTB, UCCB, GST, Federal TaxesChild Care Subsidy) Prov. Taxes
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Process for Calculating a Living Wage
The Seven Steps1. Deciding the Assumptions
A. Family size and compositionB. The hours of paid work per week
2. Determining the family expense amounts for your community (including consultations)
3. Calculating the government transfers received by the family
(CCTB, UCCB, GST Rebate)
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Process for Calculating a Living Wage
4. Calculating taxes and payroll deductionsA. EI and CPP PremiumsB. Federal TaxesC. Provincial Taxes
5. Calculating if available the Provincial Child Care Subsidy
6. Adjusting the wage amount to determine the living wage
7. Verifying the calculations (on-line calculators)
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What next? Some ideas…
What information do you need for a local calculation?
Compile information on local wages
of direct civic/BOE employees
of contractors’ employees
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More ideas…
Build a strong community campaign for increased economic equality
Identify allies and champions
Community education and mobilizing support
Listening campaigns
Map low wage work and its impacts
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Resources
http://www.firstcallbc.org/about-currentProjects-LW.html
http://www.policyalternatives.ca/reports/2008/09/reportsstudies1958/?pa=4B59033D
http://www.qolchallenge.ca/news/viewnews.php?id=51
http://www.bclivingwage.org/
http://www.vibrantcalgary.com/livingwage/
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First Call: BC Child and Youth Advocacy Coalition
202-1193 Kingsway, Vancouver, BC V6H 3V4
Phone: (604) 875-3629/1-800-307-1212Fax: (604) 875-3569
E-mail: [email protected]
Web site: http://www.firstcallbc.org/