Social Research & Planning Council announces new living wage, Ontario government celebrates poverty wages

Living Wage Week in Ontario runs Nov. 6–12 and United Way Perth-Huron’s Social Research & Planning Council (SRPC) is announcing the new living wage of $22.75 an hour, up from $20.70 last year.

“As the cost of living in the places we call home continues to rise, it’s becoming more important than ever for people across our communities to talk about how we can make our region more livable and that includes concepts like a living wage,” says Kristin Crane, director of Social Research & Planning. “This year, we’re seeing the increases in the cost of food and housing driving the increase in the living wage. Food and shelter are obviously fundamental to personal well-being, and that highlights how important it is for wages to be responsive to inflation so the economic pressures many individuals and families face are reduced.”

Based on a 35-hour work week, the Perth-Huron living wage was calculated using local data and considered the living expenses of a weighted average of three family types including a family of four, a single mother supporting a seven-year-old child and a single adult, once government transfers and deductions were taken into account. Everyday expenses in the calculation included food, housing, utilities, clothing, childcare and transportation. For more information about Perth-Huron’s living wage, visit perthhuron.unitedway.ca.

“We understand it’s challenging for businesses to think about increasing their expenses, particularly at a time when so many organizations are feeling the pressure of higher pricing themselves,” added Crane. “But we continue to hear from certified living wage employers that paying a living wage helps in many ways and over time, from reducing turnover and increasing productivity to boosting morale. While paying a living wage may seem daunting, organizations benefit in the long run.” 

“A living wage is another facet of helping make sure more people are able to take part in the life of their community and not feel isolated or stressed,” added United Way Perth-Huron Executive Director Ryan Erb. “Not having enough to get by has such a profoundly negative effect on a person’s life. If we want a fairer, more welcoming place to live, the living wage is another tool to help make sure that as we continue to grow and create opportunities as a community, everyone can benefit.”

The Ontario government recently increased the minimum wage to $16.55 an hour on Oct. 1. The press release dated March 31, that preceded the increase claimed that “this 6.8 percent pay raise for low-income workers builds on the government’s steady and predictable increases every year to help families offset the rising cost of living.” However any increases to minimum wage Monte McNaughton, Minister of Labour, Immigration, Training and Skills Development has followed an increase freeze when the Ford government came to power which stopped plans for minimum wage to reach $15 an hour by Jan. 1, 2019. It took until January 1, 2021, for the Ford government to raise the minimum wage to $15.00.

In 2021 the living wage in Perth-Huron was $17.95, and as it was announced this week it has increase by $4.80, whereas the already insufficient minimum wage has increased $1.55.

“Under the leadership of Premier Ford, our government is putting workers in the driver’s seat of their careers, and their lives,” said Monte McNaughton, Minister of Labour, Immigration, Training and Skills Development. “This latest increase is a fair and balanced approach that means more money in their pockets so they can support their families and continuing building a stronger Ontario for all of us.”

However, despite what Minister McNaughton claims, the new living wage rates in Ontario point to a different reality. The living wages by region across the province are Greater Toronto Area $25.05, Grey-Bruce-Perth-Huron-Simcoe $22.75, Dufferin-Waterloo-Guelph-Wellington $20.90, Brant-Niagara-Haldimand-Norfolk $20.35, North $19.80, Ottawa $21.95, East $20.60, Hamilton $20.80, Southwest $18.65, and London-Elgin-Oxford $18.85.

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