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Local living wage second highest in province

Minimum wage increase will still leave workers nearly $12,000 a year below living wage
minimum wage, 15 dollars Canadian money
minimum wage, 15 dollars Canadian money

What’s the difference between minimum wage and a living wage?

The difference may be a recreational swim in a town pool. Dental care. Internet access to read local news or search for a job. New boots. A continuing education course to learn a new skill. Or all of the above.

"A living wage is really about allowing people to thrive and participate in their community," says Ted Hildebrandt, director of social planning at Community Development Halton.

Earlier this week, the provincial government announced it would be upping Ontario’s minimum wage to $15 an hour, effective Jan. 1.

But even with that increase, minimum wage will fall $5.75 short of a living wage in Halton, according to the Ontario Living Wage Network. That’s a shortfall of $230 per week, or nearly $12,000 a year, based on a 40-hour work week.

A recent report from the network pegs a living hourly wage in Halton at $20.75, second in the province only to Toronto at $22.

The number – a weighted average of costs facing families, single parents and single people – is based on local data gathered using the network’s methodology, says Hildebrandt.

It includes the costs of necessities such as housing, food, transportation, childcare and utilities, as well as costs for clothing, internet and phone services, medical expenses, recreation and other items most families take for granted.

The cost of housing alone is set at $18,250 per year, with food costs at $4,655 and transportation adding another $2,539.

Ontario Living Wage Network
Ontario Living Wage Network

"Probably the number we’ve come up with people would say is still modest in terms of thinking about a living wage," admits Hildebrandt.

But, he says, it serves as a starting point for talking about the benefits to everyone when workers can afford to live in and participate in their communities.

Those include a better quality of life for employees, as well as improved health and opportunities, he says. Happier, healthier employees are more productive and have lower absenteeism rates.

He adds that a living wage can also make it easier for businesses to keep workers, resulting in lower training and recruitment costs. High housing costs and low rental vacancy rates often drive workers outside of the region to live. Minimum wage employees can then easily be enticed into jobs in those communities, to avoid the costs and hassles of commuting.

According to 2020 estimates from Environics Analytics, more than 10 per cent of Oakville households earn less than $40,000 a year.

When people earn less than a living wage, they may struggle to afford transportation, internet services and childcare, says Vivien Underdown, senior manager with the United Way of Halton and Hamilton.

That increases social isolation, damages their physical and mental health and makes it harder to find work and stay engaged in their communities,

"I think that one of the big things that became a stark reality during the pandemic was the digital divide," she says.

Underdown adds that communities also need to be concerned about the welfare of people receiving social assistance and disability supports.

"Starting with that living wage is an absolute must," she said. "But we also need to collectively work together to ensure the network of supports support everyone who is living in poverty in order to collectively bring the community up."


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