Contentious social policy moves on to council

A Calgary council committee narrowly passed a living wage policy Wednesday, designed to move workers above the poverty line, but critics called it largely symbolic.

The policy, which requires the city and any companies it does business with to pay staff at least $13.25 an hour without benefits, passed by a 5-4 vote and moves to the full city council next week.

'You can well imagine that every single one of your employee groups are going to be demanding substantial wage increases.' — Danielle Smith, Canadian Federation of Independent Business

A city report said almost 700 people who work for the city, mainly in part-time and casual positions as lifeguards, concession workers and childcare workers, make less than $13.25 an hour, which administration determined is the amount needed to pay for basic needs. 

Connie Johnson of Vibrant Communities Calgary applauded the policy: "The living wage policy will go a long way in solving two key problems in Calgary: our labour shortage and poverty."

But some aldermen who voted against the proposal said the policy is mainly symbolic because it would affect so few city employees, and impact city suppliers negatively by forcing them to boost their wages too.

Alberta's current minimum wage is $8.40.

Danielle Smith, Alberta director of the Canadian Federation of Independent Business, said the living wage policy would effectively increase the minimum wage and act as a falling domino.

"If you are giving a 60 per cent wage increase to certain employment categories, you can well imagine that every single one of your employee groups are going to be demanding substantial wage increases," she said Wednesday.

However, Ald. Druh Farrelll said the symbolism is as important as the wage increase itself.

"I think if you look at extremes in other oil-rich places like Dubai, they're providing their wealth on the back of the worker," she said. "If you look at what's happening in Calgary, poverty is going up at a dramatic rate in the face of extreme wealth, and I think Calgary could send a really strong message."