City of Vancouver passes motion to make itself a living wage employer

UPDATE: City council unanimously passed the motion at their meeting today.

A Vancouver council committee will hear from speakers on a proposed law that could guarantee a living wage for all city employees.

If passed, the motion would direct city staff to report on the steps necessary for the City of Vancouver to be certified as a living wage employer. According to the Metro Vancouver Living Wage for Families Campaign, the living wage in Metro Vancouver is $20.68 per hour.

READ MORE: Living wage in Metro Vancouver rises to $20.68 an hour, says report

Last month, Mayor Gregor Robertson announced he was putting forward the motion, saying it was important for Vancouver to respond to unaffordability in the city.

“Vancouver has one of the strongest economies of any city in Canada, but too many families are struggling to make ends meet. Full-time work should provide families with a basic level of opportunity and economic security,” said Robertson in a statement.

“A living wage has a direct impact on health and well-being, and helps create stronger local communities and economies. This motion will allow the City to lead by example, and encourage other organizations to join the living wage movement.”

Generally, a living wage is defined as the hourly wage needed for a person to support a family of four with the bare essentials.

It was brought forward to city council yesterday and referred to the committee on city finance, which begins its meeting at 9:30 a.m. today.

A rally is being held outside city hall today by groups in favour of the motion.

How does the living wage in Metro Vancouver add up to $20.68 an hour?

At $20.68 per hour for Metro Vancouver — or $37,638 annually for each parent working full-time — here’s what a family could afford, according to a recent report by the Metro Vancouver Living Wage for Families Campaign:

FOOD: $783/month (based on estimates by the Provincial Health Services Authority for a nutritious diet).

CLOTHING AND FOOTWEAR: $191/month.

SHELTER: $1,573/month (includes conservative rent estimate for a three-bedroom apartment, utilities, telephone, and insurance on home contents).

TRANSPORTATION: $517/month (includes the amortized cost of owning and operating a used car as well as a two-zone bus pass for one of the parents, replaced by a discounted student transit pass, the U-Pass, for eight months of the year).

CHILD CARE: $1,324/month (for a four-year-old in full-time care, a seven-year-old in before and after school care, full-time care during winter break (one week, the other assumed covered by the statutory holidays and informal arrangements) and spring break (two weeks), and six weeks of full-time summer care). Notably, child care is the second most expensive item in the living wage family budget after shelter.

MEDICAL SERVICES PLAN (MSP) PREMIUMS: $144/month.

NON-MSP HEALTH CARE: $139/month (the cost of a basic extended health and dental plan with Pacific Blue Cross Insurance; does not include expenses only partially covered by the insurance plan).

PARENTS’ EDUCATION: $91/month (allows for two college courses per year).

CONTINGENCY FUND: $241/month (two weeks’ wages for each parent, which provides some cushion for unexpected events like the serious illness of a family member, transition time between jobs, etc.).

OTHER HOUSEHOLD EXPENSES: $734/month (covers toiletries and personal care, furniture, household supplies, laundry, school supplies and fees, bank fees, some reading materials, Internet, minimal recreation and entertainment, family outings (for example to museums and cultural events), birthday presents, modest family vacation and some sports and/or arts classes for the children).

This living wage calculation does not cover:

• Credit card, loan, or other debt/interest payments;
• Savings for retirement;
• Owning a home;
• Savings for children’s future education;
• Anything beyond minimal recreation, entertainment, or holiday costs;
• Costs of caring for a disabled, seriously ill, or elderly family member; or
• Much of a cushion for emergencies or tough times.

– With files from Amy Judd