Change in federal policy lowers wage for first time despite rising costs
A report released today finds that the wage needed to cover the costs of raising a family in Prince George is $16.52 per hour. This is the 2016 North Central, BC living wage, the hourly wage that two working parents with two young children must earn to meet their basic expenses (including rent, child care, food and transportation), once government taxes, credits, deductions and subsidies have been taken into account. The North Central BC Living Wage Region includes the communities of Prince George, Quesnel, Vanderhoof and Fort St. James.
The living wage campaign celebrates its’ eighth anniversary in British Columbia, with 2016 being the first year that the rate has decreased. This is according to Working for a Living Wage 2016: Making Paid Work Meet Basic Family Needs in Metro Vancouver, a report published by the Canadian Centre for Policy Alternatives’ BC office, First Call: BC Child and Youth Advocacy Coalition and the Living Wage for Families Campaign. The decrease is entirely due to the expansion of the Canada Child Benefit announced in this year’s federal budget.
Monthly Costs of Living for a Family of four in North Central BC – April 2016:
|
Item |
2015 Monthly Expenses |
2016 Monthly Expenses |
2016 Annual Expenses |
% of Total Expenses |
|
Shelter: 3-bedroom unit, telephone, utilities, contents insurance |
$1,086.22 |
$1,078.13 |
$12,937.55 |
20.9% |
|
Food |
$812.46 |
$876.25 |
$10,514.96 |
17.0% |
|
Clothing |
$190.57 |
$183.53 |
$2,202.34 |
3.6% |
|
Transportation |
$475.87 |
$467.04 |
$5,604.48 |
9.1% |
|
Other Household Expenses** |
$756.28 |
$799.07 |
$9,588.84 |
15.5% |
|
Child Care |
$1,046.67 |
$1,164.67 |
$13,976.00 |
22.6% |
|
Medical Services Plan (MSP) |
$144.00 |
$150.00 |
$1,800.00 |
2.9% |
|
Non MSP Health Expenses |
$139.00 |
$139.00 |
$1,668.00 |
2.7% |
|
Emergencies (2 weeks’ pay) |
$196.23 |
$192.73 |
$2,312.80 |
3.7% |
|
Parent Education |
$79.28 |
$97.79 |
$1,173.53 |
1.9% |
|
Total |
$4,926.58 |
$5,148.21 |
$61,778.50 |
100% |
**Other household expenses include personal care items, household supplies and furnishings, small appliances, recreation, laundry, banking, computer, internet, and children’s toys.
Child care and housing are the two biggest costs in the living wage calculation with child care increasing by $118 per month in the North Central BC region. The overall increase in expenses was 4.49%, much higher than the general inflation rate of 1.1% for BC.
Living wage rates have also decreased in Metro Vancouver ($20.64), Victoria ($20.02), Parksville-Qualicum ($16.76), Kamloops ($17.21) and the Fraser Valley ($16.28) where reports were released today.
“The decrease in the living wage rates demonstrates that good public policy can have a positive impact on the lives of families,” says Deanna Ogle, the campaign organizer with Living Wage for Families Campaign. “However, without the provincial government stepping up as an equal partner, we see that federal policies can only help balance out rising costs. BC is the only provincial government without a poverty reduction plan. Families are counting on the provincial government to do better.”
“A $16.52 hourly living wage may seem high to some but this is the hourly rate of pay a family must earn in order to survive and maintain an adequate quality of life in North Central BC. It’s not an affluent wage by any means and we’re fortunate to live in an area where the cost of living is low compared to our neighbors in Metro Vancouver where the living wage rate is set at $20.64 per hour,” says Cori Ramsay, Communications Officer with Integris Credit Union.
Fifty-seven organizations across BC, employing over 6,500 workers and covering many thousands more contracted service workers, have been certified as Living Wage Employers. These include Integris, Vancity, the Canadian Cancer Society – BC and Yukon Divisions and the City of New Westminster.
“Integris is a community enriching Credit Union dedicated to poverty reduction and increasing the well-being of our members, staff and communities. We will maintain the higher 2015 living wage rate of $16.82 per hour, and will not be decreasing the hourly pay of our staff to match the decreased 2016 rate. If the living wage rate increases in 2017, we will increase accordingly,” says David Bird, President & CEO of Integris Credit Union.
Working poverty is a Canada-wide issue. Over 50 communities across the country, 21 in BC, have active living wage campaigns and are advocating to improve quality of life for low-wage workers. North Central BC has the second lowest living wage rate in the province at $16.52 per hour, a $0.30 cent decrease from the following year.
For Interviews Contact:
- Cori Ramsay – Communications Officer, Integris, 250-612-3464
- Deanna Ogle – Campaign Organizer, Living Wage for Families, 604-9775-3347
- Iglika Ivanova – Senior Economist and Public Interest Researcher, Canadian Centre for Policy Alternatives (and co-author of the report), 604-801-5121 x 232
