Living wage is a term used to describe the minimum hourly wage necessary for a family of four with two working parents working full-time to pay for food, shelter, support the healthy development of their children, escape financial stress and participate in their community.

 

The living wage is calculated as the hourly rate at which a household can meet its basic needs, once government transfers have been added to the family income (i.e. Universal Child Care Benefit) and deductions have been subtracted (i.e. income taxes and Employment Insurance premiums). This hourly rate changes according to regional cost of living.

 

The new policy will apply to all full and part-time employees working for the City of New Westminster. It will also apply to any person contracted to perform physical work on City of New Westminster-owned premises and properties. City staff are currently developing guidelines with respect to implementation of the new policy.

Currently, no person working in a full or part-time capacity for the City of New Westminster will be impacted by the new policy as their wages are already above the threshold of the proposed hourly living wage rate for Metro Vancouver. Based on staff research, some contractors providing services to the City will be impacted where their hourly wages paid to employees fall below the living wage threshold for Metro Vancouver.

 

In the April 26, 2010 resolution, City Council requested staff to provide further information regarding the Living Wage Policy on contracted services. That information is being compiled.

 

No. The Living Wage Policy will apply equally across the board to all contractors bidding on City work to be conducted on city-owned properties and premises.

 

While other cities in Canada have adopted policies dealing with ethical purchasing, supplier conduct and fair wages, the City of New Westminster is the first city in the country to adopt a living wage policy tied to a specific hourly figure.