During my holidays last month, I found the time to read an essay that Bill Gates wrote for Time magazine. In it, the former head of Microsoft discusses how the world can fix capitalism, something — according to Gates — that has improved the lives of billions of people, and yet has left out billions more. Those left out, says Gates, are stuck in poverty, suffer from preventable diseases, and never have a chance to make the most of their lives. And Gates believes that non-profit groups and governments have an irreplaceable role in helping them.
The essay was nothing short of inspirational and so it was with much interest that I am watching the goings on at regional council, where a report has been prepared that proposes all workers be paid what is called a living wage. That is, enough to live without needing the assistance of food banks or other forms of social assistance. The recommendation within that report suggests that the living wage in Waterloo Region should be $13.62 cents per hour, or almost five dollars more per hour than the current minimum wage in this province.
The implications of adopting such a recommendation are many. If the region moves forward with the idea, all work that is currently contracted out would have to pay employees that minimum of $13.62 per hour. In the case of janitorial services alone, which the region does contract out today, the cost of the contract would leap almost 50 per cent — from $1.7-million per year, to $2.5-million. The impact to you and I, the average taxpayer? About four bucks. Or, in layperson’s terms, about three medium cups of Tim’s coffee. Per year. We sacrifice that, and the average worker in this region will be paid enough to earn a modest living.
Not surprisingly, area social agencies are all for the idea. And 125 American cities are also already on-board with some form of living wage policy. Baltimore was the first, and has been doing it for more than a decade. A city official there says the policy has been nothing short of a resounding success, calling it completely affordable to the municipality, with a cost impact of less than one per cent.
Critics point to our softening economy and suggest that higher-priced contracts could force governments to trim costs, meaning the higher paid positions would exist but there would be fewer of them to go around. Not to mention the social safety nets, including minimum wage protection, that are already available. These critics have clearly not had to live on minimum wage themselves for some time.
More than 200 years ago, in 1799, Welshman Robert Owen bought a cotton mill in Scotland and instituted several reforms, all aimed at improving conditons for the worker. His belief? That a five per cent return on his investment was more than enough. The rest of the profits could be used for the benefit of his employees. In light of that, I’m forced to ask, what has taken us so long to even start this conversation? The region knows what is, ultimately, the right thing to do here. The only question is whether or not it has the political will to become the first community in all of Canada, to do it.