The Impact of a Living Wage Policy for The City Of Calgary Review of Literature

Living wage amounts in the cities reviewed varied in terms of amount. Generally, living wages were determined to be wages above the federal poverty line for a full-time worker with a family of four. Actual amounts varied from $8.35 / hour in Detroit to $9 / hour at the San Francisco Airport, and $11 / hour for The City of San Francisco. Some municipalities also require health care benefits, or the equivalent in wages. In some municipalities, wage levels are also indexed to inflation. At the San Francisco Airport, It also mandated 12 days per year of paid time off, established educational hiring criteria (min. high school completion) and mandated a training standard of 40 hours for new employees. In Canada, various definitional approaches have been advanced. In a backgrounder prepared for the Region of Waterloo, it is recommended that the living wage be a wage that supports a family of three and includes benefits that supplement the financial income (Skillen, 2003). Shenk (2001) suggests that there are two primary definitional approaches: i) wage set at 70% of the average wage and indexed to inflation; ii) wage required to reach the Statistics Canada Low Income Cut-Off (LICO). A policy tool that has been implemented in several Canadian jurisdictions is the Municipal Fair Wage policy. Fair Wage policies are intended to ensure that contractors for The City pay their workers union rates, or for non-union workers, the prevailing wages and benefits in their field of employment. As these wage rates are based on union rates, they tend to be substantially above the LICO.

Publication Date: 
2008