The Ontario government is increasing the minimum wage nearly four per cent next month but one advocacy group says it’s nowhere near a sustainable living wage.
The minimum wage is increasing from $16.55 per hour to $17.20 on Oct. 1, which brings Ontario’s minimum wage to the second highest in Canada after British Columbia.
This means those working 40 hours per week will see an additional $1,355 in their pockets for the year.
Student wages are also increasing from $15.60 to $16.20 for students. These wages apply to residents under 18 years old, who work 28 hours a week or less during school.
“Under the leadership of Premier Ford, our government is helping nearly one million workers earn more money for themselves and their families,” Minister of Labour, Immigration, Training and Skills Development David Piccini said in a release back in March.
Thirty-five per cent of workers who were at or are below the current general minimum wage work in retail and 24 per cent are in accommodation and food services.
Craig Pickthorne, the communications coordinator at Ontario Living Wage Network (OLWN), told Now Toronto the increase is a good move but doesn’t match anywhere close to the current living wage of $25.05, which was calculated by the organization last November.
“Big surprise [the minimum wage] is going up again, but even after the increase it’s nowhere near what it’s like to live in Toronto. Living wages are modest. They don’t include debt, education, or savings for home ownership,” Pickthorne said on Tuesday.
Working full-time isn’t enough to make ends meet in Toronto and people would have to have multiple jobs, especially if they’re a minimum wage worker, according to Pickthorne.
“Minimum wage went up quite a bit from $11 to $14 in 2018 and after that, it’s gone up pretty incrementally if you look at the inflation and rising costs like housing,” Pickthorne said.
OLWN calculates the living wage rate every November in a spreadsheet with an equation that inputs rent, cost of transportation, food, internet access, mobile cell plans, childcare, and any government taxes to determine the hourly wage needed to cover these bills.
“It’s hard to contemplate a government that would borrow our documentation and methodology and make that the minimum wage. Until then we will be calculating living wage rates and certifying employers that do pay.”
The network certifies an ongoing list of employers that pay living wages, such as Emma’s Country Kitchen and Beast Pizza – two restaurants in Toronto that have been paying employees living wages for years, according to Pickthorne.
“Many people believe the food service industry is a low-paid sector, but these businesses have been paying living wages for years. Certified employers don’t promise once to pay that rate. In order to maintain certification they have to pay increases and they’ll have to pay the new rate every year,” Pickthorne said.
In 2014, Worker advocacy organization Workers’ Action Centre won a bump for the minimum living wage from $10.25 to $11.00 in Ontario, along with the cost of living adjustment, according to organizer Pam Frache.
Since 2014, the cost of living adjustment was embedded in the government’s legislation to increase minimum wages depending on the Ontario Consumer Price Index.
“What’s happening on October 1st is the annual cost of living adjustment which adjusts the minimum wage so it doesn’t keep losing its value. It’s not charity the government does every year because they care about workers. It’s because we put this legislation in place,” Frache told Now Toronto.
However, Frache believes workers won’t be truly receiving additional income because everything is more expensive in the city, especially rent.
“The Ford government has contributed to reducing the rate of overall minimum wage. They’ve also cancelled paid sick days and equal pay between part-time and full-time workers. There used to be high quality, non-market social housing, and these low rent options served to create downward pressure on what the private rental market was able to charge. Even cooperative housing has virtually stopped over the last 20 years,” Frache said.
The Workers’ Action Centre is currently campaigning for all workers to be paid $20 an hour, no matter where they live.
“There needs to be a floor for all workers below which no employer is allowed to go less than, but that has to be in combination with really important policies like rent control,” she said.
