Full-time workers need $12 an hour to rise above poverty line
The City of Calgary is debating implementing a living wage for all city employees and those who work for city suppliers.
A Calgarian, working full time, needs to earn $12 an hour ($13.25 without benefits) to reach the poverty line as determined by the low income cut off but the province's minimum wage is $8.40 an hour.
Despite Calgary's booming economy, 34,800 workers in Calgary over the age of 25 make less than $12 an hour, according to Statistics Canada, and 13 per cent of Calgarians live in poverty.
The city has been studying the impact of a living wage policy for the past year and found 682 of the city's approximately 12,000 employees earned less than a living wage in 2007. It has also found that more than 89 per cent of city suppliers already pay all employees a living wage and 94 per cent said they were likely to still bid on future contracts if the city adopted a living wage policy.
During stakeholder sessions, the City of Calgary heard from the owner of Alberta Janitorial, who said he was in favour of a living wage policy because it would create a level playing field for suppliers. The policy would prevent bidders from winning a contract by solely paying the lowest possible wages.
The city estimates it will cost $200,000 a year to lift all city workers' wages to a living wage and the ripple effect will cost an additional $245,000 a year.
City council will vote on the policy on April 28.
A Calgarian, working full time, needs to earn $12 an hour ($13.25 without benefits) to reach the poverty line as determined by the low income cut off but the province's minimum wage is $8.40 an hour.
Despite Calgary's booming economy, 34,800 workers in Calgary over the age of 25 make less than $12 an hour, according to Statistics Canada, and 13 per cent of Calgarians live in poverty.
The city has been studying the impact of a living wage policy for the past year and found 682 of the city's approximately 12,000 employees earned less than a living wage in 2007. It has also found that more than 89 per cent of city suppliers already pay all employees a living wage and 94 per cent said they were likely to still bid on future contracts if the city adopted a living wage policy.
During stakeholder sessions, the City of Calgary heard from the owner of Alberta Janitorial, who said he was in favour of a living wage policy because it would create a level playing field for suppliers. The policy would prevent bidders from winning a contract by solely paying the lowest possible wages.
The city estimates it will cost $200,000 a year to lift all city workers' wages to a living wage and the ripple effect will cost an additional $245,000 a year.
City council will vote on the policy on April 28.
