1 A Living Wage for Families First Call: BC Child & Youth Advocacy Coalition Columbia Institute Centre for Civic Governance From the Ground Up Conference March 7, 2009 Adrienne Montani and Tim Richards

2 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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4 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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7 Growing Inequality Total Annual Income for Families with Children in BC

8 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

9 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

10 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.

Family Expenses Monthly Annually % 1. Food , Clothing & Footwear , Shelter 1, , Transportation , Other , Childcare , MSP Premiums , Non MSP Health Ex , Contingency Amount , Parent Education , Total 4, ,

12 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

13 Total Family Expenses The two-parent, two-child family has total family expenses of: $4,696 / month, or $56,357 / year

14 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)

Formula for the Living Wage AnnualIncome from Family=Employment+ Expenses (Living Wage) Income from EI and CPP Gov’t Transfers - Premiums (CCTB, UCCB, GST, Federal Taxes Child Care Subsidy) Prov. Taxes 15

Process for Calculating a Living Wage The Seven Steps 1. Deciding the Assumptions A. Family size and composition B. 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) 16

Process for Calculating a Living Wage 4. Calculating taxes and payroll deductions A. EI and CPP Premiums B. Federal Taxes C. 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) 17

18 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

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

20 Resources udies1958/?pa=4B59033D

21 First Call: BC Child and Youth Advocacy Coalition Kingsway, Vancouver, BC V6H 3V4 Phone: (604) / Fax: (604) Web site: