Whitehorse Daily Star

Minimum wage should reflect need: coalition

The Yukon Anti-Poverty Coalition has added its voice to groups interested in the current review of the territory's minimum wage.

By Whitehorse Star on November 16, 2012

The Yukon Anti-Poverty Coalition has added its voice to groups interested in the current review of the territory's minimum wage.

In a letter to the Employment Standards Board, the coalition's three co-chairs, Charlotte Hrenchuk, Bill Thomas and Reanna Mohamed, applaud this year's raise to the minimum wage standard.

However, they say the increase "needs further revision to reflect the needs of economically vulnerable Yukoners.”

Last spring, the hourly wage was raised from $9.27 to $10.30. At that time, the board announced it would conduct consultations to determine if any further increases were needed.

Public consultations by the board ended this week.

The Whitehorse Chamber of Commerce is urging the board not to recommend a higher minimum wage.

"As stated in the information provided to stakeholders by the employment standards board, a person working full-time, 40 hours per week, earning minimum wage will have a gross income of $400 per week, or $20,800 per year,” the coalition's letter says.

"This yearly income places individuals and families just out of reach of the rising cost of living in the territory.”

The letter goes on to suggest the board consider instituting a living wage policy as opposed to simply raising the minimum wage.

"While minimum wage is a minimum legal standard of pay, a living wage reflects what an earner needs to make in order to cover the cost of living of themselves and their family in their region,” it says.

"Essentially, it is the hourly rate at which a household can meet its basic needs once government transfers and deductions have been subtracted.

"A living wage focuses on the needs of families, lifting parents out of severe financial stress and providing a very conservative and basic level of economic security.”

The group points to the 2006 census, which found that 4.3 per cent of Yukon families are living below the low-income, cut-off index.

"In particular, the unattainable cost of housing means that parents are faced with prioritizing rent over food or paying for heat over other utilities.

"It is well-established that children living in poverty are coming from families where one or both parents are working full time.

"High costs of safe and adequate childcare in Yukon also places significant strain on a family's budget, especially when one or both parents are required to work full-time to make ends meet.

"This tells us that the Yukon minimum wage is insufficient and is actually contributing to the cyclical nature of poverty,” the letter says

" Low wage earners are more often women, visible minorities, new immigrants, aboriginal, and individuals living with disabilities.

"These groups are already overrepresented as those living in poverty in our community. While the work of low wage earners is traditionally devalued, there are options to honour the human right we all have to earn a dignified and equitable wage.”

Living wage policies currently exist in parts of the Lower Mainland of British Columbia and parts of the United States and United Kingdom.

In New Westminster, B.C., the first municipality in Canada to adopt a living wage policy, the coalition claims the community saw reduced absenteeism; increased skill; morale and productivity levels; and ability to attract and keep employees in a tight labour market; and improved customer satisfaction.

"Advocates for a living wage recognize that this approach to reducing poverty is healthy for individuals, families, communities and employers.

"It reduces social exclusion, promotes gender equality, supports healthy childhood development principles, and enables working families to escape poverty

"It also emphasizes the benefits of government involvement in reducing poverty through income transfers and employee benefit programs,” the coalition says.

"Living wage policy recognizes that the problems of poverty and social exclusion cannot be fixed solely through adequate labour market wages.”

Comments (21)

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Don Swayze on Nov 26, 2012 at 7:45 am

That means we can only pay $433.33 a month for rent as rent is 25% of your income!!

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Jackie Ward on Nov 24, 2012 at 3:50 pm

Daycare should not be subsidized. Either should breakfast for hungry children. If parents can't afford to feed or care for their children on their own dime they should not have children in the first place. It's called being responsible. Too many just pump kid after kid out and cry they have no money to feed them. Then the government swoops in and saves the day.

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north_of_60 on Nov 23, 2012 at 12:12 pm

To really help those who are truly in need, tie the food bank in with social services so that only needy people can get free food. To get food bank food one would first have to go across the alley and apply for it through social services who can assess the level of need and issue appropriate food bank vouchers.

Subsidizing day care would be another way to help those who really need assistance.

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Free North on Nov 23, 2012 at 4:01 am

Well Said Mr. Carruthers.

A raise in minimum wage is one thing but asking for it to be over twenty dollars an hour is ridiculous. How would it feel for someone who wracked up student loans, and worked hard through school to make 28 dollars an hour will feel seeing someone without the student loans make 22 dollars an hour.



It is also important to realize that contrary to popular belief Whitehorse is NOT expensive. It is on par with other towns of the same size. Add to that the fact that wages in this town are already higher than in many other areas and it becomes difficult to be sympathetic.

I am sympathetic to families who are struggling with the cost of child care, so I think the solution maybe in subsidized child care, not wages.

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Proud Govey Worker on Nov 22, 2012 at 12:53 pm

This comment is directed at Longtime Yukoner, yukonpete and any other narrow minded individual planning on making a negative comment directed at Government workers.

How truly ignorant to make such a comment to generalize that government workers sit on facebook all day and quote, "live the good life”. Well let me tell you about me living the good life.

Right now I am away from my husband and children sitting in a motel room taking a five minute break after working all day (hope that's okay with you). I've been up since 5:00am so I could be working at 6:00am. I worked all day and no, I didn't check facebook much to your shock I'm sure. I didn't have the time or the audacity to go online on your dime, yes you, the taxpayer because you see, I'm a taxpayer too, genius. While Longtime Yukoner was trolling the Whitehorse Star online at 10:25am, I was working my ass off. I haven't eaten dinner and likely won't get anything as the restaurant closed before I could leave the office. I don't have the time anyway because you see I have spent dinner time checking and responding to my emails many of which are from the public and deserve to be responded to in a timely fashion. I will be up all night completing my assignment because I have a responsibility to the community to help them despite financial constraints of my unit.

I will be returning to Whitehorse on Saturday, my day off, because I need as much time here as possible. I am not authorized to get overtime pay for that time because I was given the option to travel back to Whitehorse during working hours on Friday. Due to my workload, I couldn't possibly leave then so instead will remain, work all day and all Friday night (hopefully you won't mind if I take a five minute break tomorrow night?). Your welcome for saving some tax dollars (at my expense).

For the remainder of my weekend I will be catching up on work that piled up while I was away because you see, my office is badly under staffed and under funded.

By the way, I make about 25 bucks an hour. Not as low as minimum wage I know but not enough either to be working around the clock trying to make a difference in our community and to put up with stupid comments such as your's. I worked my butt off to get here and I work my butt off here to stay here.

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Sam on Nov 22, 2012 at 12:13 pm

Carruthers

So how are people supposed to improve when they can't even pay the rent?? Not everyone has the same opportunities as you. What about someone with a learning disability who can't get into university? Are they only good enough to make coffee at Tim Horton's for people like you for min wage? Get over yourself!

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north_of_60 on Nov 22, 2012 at 11:35 am

"I bet half the people on here posting against the raise are over paid YTG or COW workers! "

Not me, I WORK for a living.

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yukonpete on Nov 22, 2012 at 11:30 am

@ Brice Carruthers

Everyone deserves a livable wage. $10.20/h does not cut it. Not everyone has the same opportunities you have or I have. I have a trades background and earn my money. I work with YTG regularly and most are not worth the rate they are paid! They do in a week what private sector employees get done in 1 day! And that's a fact!

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DMZ on Nov 22, 2012 at 10:28 am

Hey, Brice -- you didn't build the roads that got you to school. Or something like that.

What you did in university and how you spent your weekends has nothing to do with other people "deserving" to be working poor.

Give your head a shake. Clearly you slept through one or two classes in school.

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Brice Carruthers on Nov 22, 2012 at 6:27 am

@ yukonpete

Yes, I do make a handsome wage indeed! I worked hard in school and paid attention in class to get there. In University, I would work hard over weekends, while my buddies would be out partying. For several of those student years I subsisted off a diet of Kraft Dinner and Raman Noodles. The point is everybody makes the bed they sleep in. If you have to work for minimum wage, you probably have nobody to blame but yourself. Instead of asking for more from Government, why not try asking more out of yourself.

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yukonpete on Nov 21, 2012 at 2:32 pm

I bet half the people on here posting against the raise are over paid YTG or COW workers!

The Win wage is low. Perhaps all COW and YTG employees should be paid min wage with little to no benefits, sick days, holidays etc.. Boy would they cry poor!

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north_of_60 on Nov 21, 2012 at 9:53 am

"Sorry north of 60, but you don't seem to know what inflation actually means."

Try to state your own views clearly and concisely and please refrain from sharing your personal opinions of other people posting. It's called grandstanding, and it's rude.

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Longtime Yukoner on Nov 21, 2012 at 2:25 am

Meanwhile gov't workers sit on FB all day and live the good life.

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Jackie Ward on Nov 20, 2012 at 10:15 am

I forgot to add;

"In Germany in the 1920s, South America in the 1980s, and Zimbabwe today, everyone recognizes that inflation was caused by the government running the printing presses non-stop, with the resulting exponential rise in prices being the necessary result of monetary growth. Yet somehow, both the empirical and theoretical reality of inflation as a rise in money supply is ignored in this country. Inflation is conflated with price inflation, the increase in the overall price level, and is viewed as something both endogenous to the market economy while at the same time influenced by exogenous price shocks.

Because no one understands that inflation is growth in the monetary supply, no one is able to combat it effectively. We hear all sorts of hand-wringing about increasing inflation, and all sorts of explanations about how rising oil and food prices will make inflation worse. At the same time, the fact that MZM, the closest approximation to total money supply that still is reported by the Fed, is still rising by almost 15% per year and that M2 is rising significantly as well is quietly ignored. The pundits have causation backwards: it is inflation that leads to rising prices of oil and food, and not vice versa.

Until the cause of inflation is understood, no effective strategy can be undertaken to combat it. The problem, however, is that the government does not want inflation to be done away with. Inflation benefits debtors and harms creditors, and the United States government is the biggest debtor of all. The United States government, the banking monopoly under the Federal Reserve System, and politically-connected firms and industries are the first entities to take advantage of new money injected into the system, before prices increase. As the increased supply of money begins to chase the same number of goods, prices rise, and the average American suffers. Poor and middle-class Americans are always the hardest hit by inflation, as the weakening dollar makes the imported goods that many Americans depend on more expensive.

As Chairman Bernanke admitted last week, inflation is a tax, and it is the most pernicious because of its hidden nature. It taxes the very purchasing power of money, and because the inflation rate in recent years has generally been low, its effects often take a while to manifest themselves. Now that inflation is beginning to rise, more and more rhetoric is being spun to hide the government's role in creating inflation. I applaud Chairman Frank for holding this hearing, as hearings such as this one investigating the link between the weak dollar and the high price of oil are more important now than ever."

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Jackie Ward on Nov 20, 2012 at 10:13 am

Sorry north of 60, but you don't seem to know what inflation actually means. To quote Ron Paul:

"The root of our current economic malaise, the weak dollar, the high price of oil, and the collapse of the housing market, comes about because almost no one understands what inflation is. Inflation is an increase in the money supply, which occurs by various methods, the printing of currency, low reserve requirements, Federal Reserve open market operations, etc."

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DMZ on Nov 20, 2012 at 9:32 am

You think inflation's not here? Costs have been steadily rising, and at least some of it is because they can. 30, 40, 50 percent higher prices and more in groceries -- I'm sure a litre of milk is almost double what it was a couple of years ago -- building supplies, gas is at a price that would have shocked everyone only a few years ago. Look at the cost of firewood.

Come on. You can't blame all that on wages. People have to live here and pay those prices. Trying to suppress a living wage because "costs will rise" -- that doesn't make sense to me. If the economy is so good, it shouldn't depend on keeping people down to support it.

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It's the BIGGGGG SHOWWWW on Nov 20, 2012 at 8:19 am

Higher prices? I support my local economy by buying everything but food off eBay. I have no time for sales taxes, import duties, etc, etc. I make sure when I buy goods to tell the seller to mark it as a GIFT, lol. Ahhhh, the GIFT of avoiding high prices and taxes. The whole notion of supporting your local business is baloney. They only care about their bottom line and paying as little as required by law.

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north_of_60 on Nov 19, 2012 at 11:33 am

Any increase in minimum wage will quickly be negated with higher prices, it's called inflation.

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Brice Carruthers on Nov 19, 2012 at 6:47 am

Raising minimum wage will result in the added cost being handed off to consumers, which would ultimately put society at the same place they started from. The best approach for helping people is to make the daily necessities of life cheaper. Things like gasoline are excessively taxed. Taxes should be reduced. Competition reduces the cost of living. Monopolies like NWTel are the reason why things cost so much here. Look at how airfares dropped with West Jest entering the market? The focus needs to be on reducing the cost of living through lower taxes, fostering competition and building infrastructure, not increasing the minimum wage.

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north_of_60 on Nov 19, 2012 at 6:30 am

Raising the minimum wage will simply drive inflation. Do you really think the minimum wage employers won't pass the increased costs on to their customers?

One probably can't live alone on a minimum wage. Adopt realistic expectations; get another job or housemates.

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stan on Nov 16, 2012 at 11:21 am

Many people have to work a minimum wage because business owners do not legally have to pay them more. They are responsible for minimum wage only.

Business owners can support more profit and personal gain by ensuring wages for these jobs are low. Temporary foreign workers are more cost effective than paying local people more. Whose social responsibility is it to ensure people can live well on the lowest wages? It should not be the responsibility of the chamber of commerce or many business since they obviously do not care about their employees.

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