An Inconvenient Truth The Corporate Agenda Would Like To Keep Hidden

Their protests notwithstanding, the truth is that raising the minimum wage is good for business. And it isn't just the behemoths depicted above who benefit.

The CEO of a popular fast food chain said this week that he was “stunned” to see profits soar each time California passed minimum wage increases.

In an interview with KQED on Tuesday, Wetzel’s Pretzels CEO Bill Phelps admitted that his investors were worried about how a 2014 wage hike would impact the business.

“Like most business people I was concerned about it,” Phelps said.

For years, opponents of minimum wage increases have argued that wage hikes mean fewer jobs because businesses have to raise prices and cut hours to cover the additional expenses. But Phelps said that his sales skyrocketed after a California law forced businesses to raise wages in 2014.

While business reflexively condemns any wage increases as devastating job-killers, Phelps came to understand a basic economic truth: when people, especially those in the lower echelons of society, have more money in their pocket, they tend to spend it.

Mike Jacobs, owner of a Wetzel’s Pretzels franchise in Concord’s Sunvalley Shopping Center, told KQED that the increased business can be attributed to the fact that his customers are making more money.

“My overall sales were something like 15 percent ahead after the first minimum wage bump, and now they’re about 12 percent ahead this year,” Jacobs explained. “It isn’t because I’m such a great manager or smart guy, but the buying public has more money in their pocket.”

Expect this information to fork no lightning with the neoliberal set, who hew to scare stories that support their greed. And in that pursuit, they have a strong ally in Andrew F. Puzder, Trump's pick for secretary of labour and a staunch opponent of minimum wage increases, who says,

I’m opposed to raising it to the point where lower-skilled workers, working-class Americans, young people, minorities, are losing the jobs they need to get on the ladder of success.”

Try telling that to the employees at places like Wetzel’s Pretzels and In-N-Out Burger, which I wrote about last March after our visit to Southern California.

But of course, I forget myself. We are about to enter, with the Trump presidency, an era where truth and facts mean little.

Andrea's Damascene Moment

In the Book of Luke, Jesus is reported to have said the following:

I tell you that ... there will be more joy in heaven over one sinner who repents than over ninety-nine righteous persons who need no repentance.

In Acts of the Apostles, Paul's conversion on the road to Damascus is described:

As he neared Damascus on his journey, suddenly a light from heaven flashed around him. 4 He fell to the ground and heard a voice say to him, “Saul, Saul, why do you persecute me?”

5 “Who are you, Lord?” Saul asked.

“I am Jesus, whom you are persecuting,” he replied. 6 “Now get up and go into the city, and you will be told what you must do.”

The pure of heart might indeed feel that those passages resonate when contemplating Ontario NDP leader Andrea Horwath's recent conversion to the belief that the minimum wage should be $15 per hour, latching on to a movement that has been gaining a great deal of traction over the past few years.

The more cynical might be inclined to see Ms. Horwath's new stance as rank political opportunism. Consider, for example, how she felt about such matters just two years ago:

"Well, look, I respect the work of the grassroots movements that have been calling for the $14 minimum wage, but I think that what our role is right now is to consult with families that are affected, as well as small business particularly that’s also affected”.

At about the same time, Ms Horwath was calling for the Ontario minimum raise to rise only to $12 per hour in 2016.

Apparently, however, she has some people fooled by her newfound allegiance to the working poor, as is evident from this Star reader's letter:

Raise the minimum wage, Letter April 11

At a recent speech for the Broadbent Institute, Andrea Horwath publicly demonstrated that her party has finally seen the light on a $15 living wage.

Her announcement is all the more noteworthy in a week when the North American Fight For $15 campaign had some rather momentous victories south of the border.

Governor Jerry Brown stared down the powerful business lobby within his own California Democratic Party to sign into law a path to $15 per hour. In New York Governor Andrew Cuomo stood up to Wall Street fear-mongering and signed the Empire State’s own $15 minimum wage law.

So the question for Ontarians, in a week awash in reforms and revelations, is whether any other party leader in Ontario will stand up to Bay Street bullies and bring Ontario standards into the 21st century by finally ending the shameful institution of government sanctioned working poverty.

If we can trade carbon with California can’t we also trade good ideas or will Ontario, California beat our Ontario to $15?

Mike Vorobej, Ottawa

I have never been a member of a political party. Perhaps if the day ever comes when I detect a leader acting out of principle and integrity instead of rank political expediency, I may join one.

Now This Is The Kind Of Story I Like To Read About

The opportunity to report about something positive in the kind of blog I write is rare. For example, while reports abound of corporate theft and paltry remuneration for the workers that make big profits possible, less common is a story about a business doing the right thing. Well, here is one such story.

All through the night, the workers at Nebraskaland Inc., a meat distributor in the Bronx, roam the alleys of a cavernous warehouse, piling boxes of beef and chicken onto pallets in subzero temperatures. Until last year, many were paid $10 (U.S.) an hour, a little above the minimum mandated by New York State.

Then Richard Romanoff, the company’s owner, saw a news segment about a movement started by fast-food workers to push the minimum wage to $15 an hour. “I’m going to speak straight with you, my managers wanted to get people as cheap as they could,” Mr. Romanoff said. But something about the idea “really clicked,” he said. Last summer, Nebraskaland began gradually increasing the lowest hourly wage at the company, which will hit $15 at the end of this year.

One can rightly ask if we are witnessing a growing momentum in the movement toward raising minimum wages, a movement that captured not only Romanoff's but also national attention a few years ago when marches and strikes began in the fast-food industry to raise wages to $15 per hour. And it seems to be getting results:

In the past week, two of the most populous states in the country – California and New York – enacted legislation to raise the minimum wage to $15 within six years. Major cities, such as Seattle, Los Angeles and San Francisco, have pledged to increase their minimum wage to $15 in steps. In Portland, Ore., the minimum hourly pay will rise to $14.75.

It would seem that some employers are starting to get the message, and they are putting the issue into propoer perspective:

At Nebraskaland in the Bronx, Mr. Romanoff said roughly half of his 250 workers are benefiting from the wage increases, at a yearly cost to his company of about $350,000. “You pretend it’s an increase in rent, or electricity – you deal with it, one way or another,” he said.

Meanwhile, the number of applicants for job openings has quadrupled as news of the pay hikes spread.

Mr. Romanoff acknowledged that for some industries – including some of his customers, like supermarkets – such increases would be a challenge. “I just know for me, why wouldn’t I do it if I can afford it?”

Enlightened business leadership is a term I usually use ironically. I am happy that at least for today, I can speak of it literally.

A Little Hard To Swallow

Despite the fact that I think and write a great deal about the disparities and inequities that plague our society, I am almost embarrassed to admit that until now, I had never heard of something called The Big Mac Index, launched, according to a recent article in The Star, in 1986 as a “lighthearted guide” to global purchasing power.

While its original purpose was as a tool to make exchange-rate theory more digestible, it has also become a barometer of purchasing power. In Britain, for example, which currently has a minimum hourly wage of ₤6.70, it would take 26 minutes of minimum wage labour to buy a Big Mac. That country has a target minimum wage of ₤9 by 2020, at which level it would take only 18 minutes to make the purchase. How does this compare with other countries?

Denmark is well ahead of the pack at a current 16 minutes. Australia: 18 minutes. France: 25 minutes.

Canada? A chart in the Financial Times shows our country at 33 minutes, which closely equates to a minimum-wage worker in Toronto, at $11.25 an hour, paying $6.10 for two all-beef patties, special sauce, etc. That same worker can look forward to a Dickensian 15-cent-an-hour increase come October.

This is not good, and our country could ultimately become an unenviable outlier when it comes to fair compensation, since the movement for increasing the minimum wage is gaining momentum in many jurisdictions:

Last Thursday, California passed a six-year phase-in to a $15-an-hour minimum wage — a landmark achievement as it’s the first state-wide success in the country. Seattle started its phase-in a year ago, with a $15-an-hour target set for Jan. 1, 2017. New York Governor Andrew Cuomo, who spent part of the winter travelling around in a “Fight for $15” branded bus, saw his push for a statewide $15 minimum watered down Thursday, but scored significant gains nonetheless, including a three-year phase in to $15 in New York City from the current $9.

Such increases are to be embraced, not opposed. As I noted recently, California's goal of increasing its wage will raise the incomes of 30 to 40% of workers in that state.

But what about all those fraught cries that such moves will result in massive job loss? According to Britain's Low Pay Commission, and as reported by The Star,

the commission wrestled with the predictable “job killer” charge — that businesses facing increased costs will flee or retrench, hurting vulnerable workers the most.

The “range of evidence,” the commission found from more than 140 research projects, was that the national minimum wage “has succeeded in raising pay for workers without damaging employment or the economy.”

While most past increases have admittedly been more gradual and modest in scope, the Commission

points out that businesses have previously worked around increased payroll costs by a variety of measures, including reducing non-wage costs or increasing productivity.

And there is one more thing that neither the Commission nor critics consider: the likelihood that the vast majority of people will not object to paying a little more for their products since it will allow their fellow-citizens the opportunity to conduct their lives with a little more dignity and a little more security.

Who could argue with that?

UPDATED: Pondering The Precariat

California, as you have likely heard, is raising its minimum wage to $15 by 2022. Although the efficacy of the increase is being hotly contested, with some claiming it will lead to substantial job loss and others citing studies that show just the opposite, the fact is that it will raise the incomes of 30 to 40% of workers in that state. And that statistic alone underscores the plight of the working poor and the precariously employed, not just in the U.S., but also in Canada. In the Greater Toronto and Hamilton area, for example, those employed in part-time, contract and temporary work is an astonishing 52%.

Those are statistics we can no longer ignore.

In a good and prescriptive editorial, The Toronto Star makes some solid arguments for both governments and unions to be much more involved in ameliorating this abysmal situation. It suggests that the federal government needs to do the following:

- Enhance the Canada Pension Plan. Precarious workers at the bottom of the rung have little opportunity to save for retirement.

- Make Employment Insurance benefits easier to get. Precarious workers may not work long enough in temporary jobs to receive them, or the benefits may run out long before they have found a new job.

- Create a national pharmacare program. Canada is the only country with a universal health-care system that fails to cover the cost of prescription medicine. Right now 85 per cent of those earning less than $10,000 and 70 per cent of those earning between $10,000 and $20,000 — in other words, precarious workers on the bottom employment rung — don’t have an employer-provided health plan.

- Create a national, affordable child care system that will enable parents to take on new jobs when they’re offered.

There is a role for provincial governments as well. Ontario, where one in eight workers makes the minimum wage, can do the following:

- Raise the minimum wage to at least $12 an hour, and aim for $15. As one economist put it, the current minimum wage of $11.25 “falls far short of any suggested benchmark: productivity gains, the average industrial wage, the living wage, or the poverty line.”

- Beef up the Employment Standards Act to require employers to give paid sick days, ensure temporary workers are paid the same rate as fulltime workers doing the same job, and follow the example of Australia, where casual employees must be paid 15 to 25 per cent above minimum wage to compensate for having fewer benefits.

- Enforce the Employment Standards Act with more inspections and follow-up fines and charges. Companies in violation of the act should be ineligible for government contracts.

Unions can help as well, by reaching

out to precarious workers in temporary and part time positions and represent them on issues from wages and scheduling to minimum hours per week.

There are all kinds of arguments brought forth on a regular basis to oppose many progressive measures such as minimum wage increases, ranging from job loss to having to pay more for goods and services. The issue of job loss has been studied, with some finding it decreases employment and others finding no such effect.

However, it seems to me that there is only real question to be asked, and Canadians are in a unique position to answer:

Are all of us are willing to pay a little more, be it through taxes or the cost of goods and services, to ensure that all of our fellow citizens' lives are defined by much more than quiet but deep desperation?

UPDATE: Although not discussed in this post, another redistributive policy approach gaining a fair amount of traction is the guaranteed annual income, about which I have written many times on this blog. Canadian Dimension has a very interesting piece on the concept and its possible negative consequences if not implemented correctly. Click here to read it.

Giving Credit Where It Is Due

Over the years on this blog, I have been deeply and justifiably critical of the excesses of unfettered capitalism. Degradation of the environment, activities contributing to widescale climate change, and exploitation of labour have been some common targets. Yet every so often, something comes along to show that not all businesses are based on such a rapacious and monolithic model.

In yesterday's business section, The Star reported on a number of enterprises that puncture the myth that paying ones's employees more than the minimum wage is a shortcut to bankruptcy, a favoured assertion of the right.

One of those enterprises is Coffee Pubs,

where the starting wage is 50 cents higher than Ontario’s $11 an hour minimum wage. Full-time staff can start earning an ownership share in the company after six months of service. The business has also expanded to include bartending and catering services. It has 16 employees; workers start at $11.50 an hour and qualify for medical and dental benefits after three months. Managers earn about $30,000, and the Cluleys, the husband and wife owners, say they pay themselves slightly more.

A small company with only two location, Coffee Pubs's decision to depart from the conventional pay model is a bold one, given that employee remuneration in a small operation is a much greater factor in overall costs than in large enterprises.

So why did they do it? Both serendipity and social conscience seem to have played roles.

Their first site, at Bloor and Bathurst in Toronto, is leased from The Centre for Social Innovation, which offers rents geared to revenue. Their second venue is at Artscape Youngplace, a collaborative public space in a former elementary school that’s home to artists’ studios, galleries and an Ontario Early Years Centre.

The Cluleys say that their advantage comes from the strong relationships they’ve forged with local vendors, tenants and walk-in customers from the surrounding neighbourhood. They estimate they have about 100 to 150 customers each day and about half of them work in the building.

The other part of the equation is their philosophy:

“We could use cheaper ingredients and pay the staff less and make more money. We know that this way isn’t going to get us wealthy but we believe in the model,” Erin said.

“We believe if we are patient, we can make a big difference. We want to show there’s another way to run a business that’s not just profit for its own sake.”

The article includes reference and links to other organizations promoting similar values, but on a larger scale, such as B Corporation and Wagemark Foundation.

Like industry leaders including WestJet and Costco, more and companies are discovering that treating employees with dignity, respect and decent wages has tangible benefits:

They argue firms that create high-quality, well-paying jobs and treat their workers better will have a more loyal and engaged workforce, leading to better bottom lines, and better end results for everyone.

We can only hope that this model, which in many ways is the antithesis of the rapacious and unfettered capitalist one widely practised today, ultimately becomes the norm. We, of course, can do our own part by patronizing such enterprises and spreading the word about them with any means we have at our disposal.

Ronald McDonald's Secret Agenda

As Johnny Carson used to say, "Folks, I merely report these things".

Andrea's Dilemma: Whither Blowest The Wind?

Were I a gifted artist (or any kind of artist, for that matter) I would draw Andrea Horwath in a two-panel caricature. In the first panel, index finger raised, she would be turning to her left, and in the second, to her right, testing the prevailing winds. That would, I believe, adequately capture what I, perhaps a tad harshly, characterize as the political prostitution of the Ontario NDP leader.

Like her long ago party leader, Bob Rae, who even today refuses to admit he made some grievous errors during his time as Ontario's Premier by trying to placate and court business, Ms Horwath seems to be walking the same lover's lane that leads to electoral heartbreak. And while it is true that she has gained popularity through some of the initiatives she has foisted upon the Liberal government as the price of her party's support, she seems to be falling victim to the same hubristic notion Rae did, that somehow she can appeal to the political right via the business community.

This strategy is given short shrift by Michael Laxer in a recent article for Rabble. Beginning with the NDP's rather oleaginous stance on the push for a $14 minimum wage, Laxer goes on to make this observation:

... the leader driven party has not strayed from its message of boutique appeals to minor consumerist middle class issues and its pandering to the fiction of the small business "job creator." While it is true that small businesses create many jobs, it is also true, especially in the absence of an industrial or neo-industrial state job creation strategy, that the jobs they create are often not even worthy of the term "McJob." They are, overall, without any question the lowest paying jobs and rarely have any benefits of any meaning.

Laxer also questions whether the consumerist approach Horwath has taken (lower insurance rates, small cuts to hydro bills, etc.) is consistent with the party's principles :

Minimum wage and non-"middle class" workers do not primarily need small cuts to hydro bills, auto insurance rates (if they even own a car), or to have the worst employers in the economy "rewarded" for creating bad jobs, they need higher wages, expanded and free transit, universal daycare, pharmacare, and the types of universal social programs "progressives" and social democrats once actually fought for. They need a wage and job strategy that is not centered around the economy's worst and least reliable employers, "small business."

They need active parliamentary political representation that will fight for living wages and economic justice.

And therein lies the problem: the Ontario NDP has essentially abandoned those whose interests it has traditionally served and advocated for.

Matin Regg Cohn, in today's Star, opines that under Horwath's 'leadership,'

...the NDP has transmogrified itself from a progressive to a populist party. Now, the third party is riding high in the polls and dreams of a breakthrough. She wants to broaden her appeal in the vote-rich middle-class suburbs and among small business owners by downplaying the party’s radical roots. Poverty is not a rich source of votes.

Hence the abandonment of long-standing party principles, evidenced in the following statement from the party leader this week regarding Ontario's minimum wage which will rise to $11 per hour on June 1:

“Well, look, I respect the work of the grassroots movements that have been calling for the $14 minimum wage, but I think that what our role is right now is to consult with families that are affected, as well as small business particularly that’s also affected,” she told reporters Tuesday.

Some might argue that this is just smart politics, that aligning oneself too much with progressive policy will simply alienate voters. But I am left with one fundamental question: If the NDP refuses to be the party of advocacy, who will be?

To that, I think the answer is obvious.

UPDATED: More On The Minimum Wage

There has been very much a predictable reaction from business to the Wynne government's decision to raise the Ontario minimum wage to $11 per hour as of June 1. Even though this modest increase will do little to lift the working poor out of poverty, the commercial sector is running about shouting that the sky will fall, prognosticating a loss of jobs as they take up a defensive position against something that will, they claim, eat away at their profits.

The following video from City TV offers a smattering of a debate over the issue; unfortunately, I no longer seem able to play video from the CBC, where much more detailed discussion has taken place, so this will have to do. Following the video, I turn to Joe Fiorito's latest observations about working poverty as his column today returns to the story of Doreen, whom I discussed yesterday.

As noted previously, Joe Fiorito has pointed out what a hardscrabble existence Doreen, a personal care worker, leads. Today, he adds to that portrait:

She said, “I broke my glasses last July. I can see, but fine stuff I can’t read.” You guessed right. She has not replaced her glasses. This is the kind of poverty that hurts deep in the bone, dulls the senses, and strangles hope. She has not stopped trying.

Compounding Doreen's problems are the expenses involved in keeping her qualifications current; she recently received a letter from one of the agencies for whom she is on an on-call list:

The letter advised Doreen that, if she wanted to stay active on the agency’s list and be eligible for work in the future, then she had to renew her first aid and CPR certificates.

Trouble is, the course preferred by that agency costs $115 and is only offered on weekends. Doreen works on the weekend for an elderly couple. What this means is that, in order to take the course and renew her certificate, she would have to cough up a day’s pay out of pocket to attend, and she would have to miss two days’ work on top of that.

There are more details about Doreen's travails in Firotio's piece, but I think you get the picture.

As I suggested yesterday, unless and until we are willing to put a human face on the working poor, their plight will never be addressed with any real justice.

UPDATE: Andrew Coyne and business representatives have recently suggested that minimum wage increases are a blunt instrument with which to attack poverty, and that a guaranteed income might be preferable. The cynic in me suggests this could be yet another way that business wants government to subsidize their operations; should they ever express a willingness to give up some of the generous corporate tax cuts that have come their way over the past several years as a show of good faith, perhaps then I will take them seriously.

A Way To Address The Problem of Restaurant Poverty Wages

Although this is an American solution, I don't see why it wouldn't work in Canada as well.



Click here if you would like more information about The National Diners Guide.

Putting A Face On Minimum-Wage Poverty

Last evening I watched a fascinating documentary on PBS' Nature* about the black crested macaque, a monkey that is endemic to rainforests in Indonesia, which includes the island of Sulawesi. The monkeys are a badly endangered species whose numbers have dropped 90% over the last 25 years thanks to hunters who sell them as bush meat in local markets, this despite the fact that such hunting and sales are illegal. The film showed the almost human side of the monkeys, with their elaborate social interactions and hierarchies.

Wildlife cameraman and biologist Colin Stafford-Johnson, who first recorded them 25 years ago, had a purpose beyond merely acquainting viewers with these riveting creatures. Working with area groups and biologists, the plan was to show local populations the film in the hope that they would see the monkeys as fully-alive beings not so different from themselves, thereby engendering an empathy that might deter them from eating them. Early results suggest some success with this strategy.

Being able to relate to issues, problems and plights on a human and humane level, being able to see beyond arid statistics, is, in my view, essential if, as a society and species, we are ever to confront and solve some of our most pressing issues. It was in this spirit that I appreciated a recent piece by The Star's Joe Fiorito entitled Life on minimum wage is not a decent living.

Certainly we know the statistics: one in eight foodbank users in Canada are the working poor; 500,000 Ontarians, one out of nine, work at minimum wage jobs. But what is the human face of such poverty?

Looking through the eyes and experience of Doreen, a personal care worker, Fiorito offers that human face:

She is single. She is in her fifties. She has a bum knee and a bad back. She also has some trouble with her vision; a brain tumour, benign, she isn’t worried.

She lives in a rent-geared-to-income apartment in midtown Toronto. While we talked, she was waiting for her church to deliver a grocery voucher so she could afford to buy some groceries. Why?

Because Doreen can’t always afford to feed herself on the money she makes for the hours she gets.

But wait, there's more!

Dorren is an on-call worker, and if she is lucky, she will work nine-hour days, four days per week, thereby clearing a mere $1,240 per month.

Her rent is subsidized; she pays $592 a month, which leaves her with $648. A Metropass costs her $133. Her phone costs close to $20. She buys phone cards to talk to her mother, who lives in another country. Her cable and Internet cost $68 a month.

She also owes $900 on her credit card; yes, she sometimes uses her credit card for food.

She also takes certain medications which are not covered by the provincial health plan. “I had a knee replacement. My back is out. I still have to work. Sometimes I go without pain medication because I can’t afford it.” I repeat: She sometimes goes without her pain medication because she can’t always afford it.

Not a very pretty picture, is it? And not one that will in any measurable way be improved by Ontario Premier Kathleen Wynne's decision to raise the minimum wage by 75 cents on June 1. The grinding face of working poverty continues to confront us and, thanks to a lack of political will, confound us.



* If you want to view the PBS show on the macaques, you will need a VPN such as Hola, free software that will mask your I.P. address so that it looks like you are an American viewer. (The PBS show is not licensed for viewing in Canada.)

Raising The Minimum Wage: Countering The Right-Wing Propagandists

Given the disappointing news about the minimum wage coming out of Ontario, and the relentless propaganda from the right about wage increases being job killers while conveniently ignoring the experience of other jurisdictions, perhaps the following video can provide some balance:

Crumbs From The Table

Poverty in perpetuity. That is what Ontario's 'socially-progressive' Premier, Kathleen Wynne, has condemned the working poor to.

After waiting more than six months for what turned out to be a very timid report from a provincial minimum wage advisory panel that ended up recommending increases tied to inflation, the premier has announced the new wage will be $11 per hour, with future increases tied to the inflation rate.

With one out of nine currently earning the minimum, this is hardly cause for celebration. Yielding, as usual, to the 'concerns' of business, Wynne had this to say:

“I know that there’s a call for $14 (but) we have to move very carefully, because this is about making sure that we retain and create jobs.”

“At the same time, we need to have a system in place that has a fairness to it, that I think has not been the case for many years.”

While few would argue that an immediate jump to the much-requested figure of $14 per hour would be too much for many small businesses to bear, the truly discouraging fact is that the premier makes no mention of further increases other than those tied to inflation. If $14 per hour would have put those working 35-40 hours per week just 10% above the poverty rate, one needn't use a calculator to know that the working poor will continue to be mired in poverty.

Today's Star editorial makes the following observation and suggestion:

Premier Kathleen Wynne’s government can do better. It should, at the very least, follow the Ontario Liberals’ earlier trend of raising the minimum wage 2.5 times faster than the rate of inflation. As part of its “war on poverty” the previous Liberal government of Dalton McGuinty raised the provincial minimum wage by 50 per cent between 2004 when it was $6.85 an hour and 2010 when it topped out at $10.25 – a period when prices rose just 17.5 per cent.

If the same formula was followed now, it would mean an immediate jump in the minimum wage to about $11.65 an hour.

Hardly the stuff of revolutionary thinking, perhaps, but at the very least, a start on the road to economic justice.

Self-Interest Versus The Public Good

We Canadians talk a good game. We want our unemployed to be able to find jobs, we want those with the need to be able to readily access the social safety net, and we think the plight of the working poor is pitiable. But a question that we must confront is this: Are we willing to put our money where our mouth is?

My question is prompted by two topics: the decline of the Canadian dollar and the push to increase the minimum wage to $14 (in Ontario).

First, the decline of the loonie. Even though its decreasing value is likely being encouraged by the Harper government to boost employment numbers going into the 2015 election, the fact is that a lower dollar is good for job creation, increasing as it does exports of our products and tourism from abroad.

Yet what seems uppermost on the minds of many? - the fact that imported goods will cost more, trips to sun destinations so popular with chilled Canadians are getting more expensive, and cross-border shopping trips will no longer be such a source of delight for so many.

This is just a thought experiment, but I can't help but wonder what choice people would make if they had the power to affect the trajectory of the Canadian dollar. Would they see the larger good that will be served by its current decline, or would they say that's none of their concern, and that their priority is to get the most value for their hard-earned dollars?

On a similar note, we profess our enthusiasm for a significant increase in the minimum wage, a subject upon which I have written many times. Indeed, there is some good news on that front from the United States, where, for example, Seattle's new mayor, Ed Murray, has boosted the wages of municipal workers to $15 per hour, and Seattle's suburb of Sea Tac has done the same for the 1,500 hotel and rental car agency workers.

Putting aside the usual objections raised by the usual suspects that wage increases are job-killers, there are compelling reasons for increasing the minimum wage, not the least of which is the boost to the economy that ensues when more money is put in the hands of more people. As an entrepreneur in the documentary Inequality for All says, "Just because I make $10 million a year doesn't mean I spend $10 million a year on goods and services. It's better that money should be put in the hands of many people so they spend." He went on to explain that his money is invested to earn more money, not necessarily to create jobs.

Add to that the fact that, for example, raising the minimum wage in Ontario to $14 per hour would put raise the working poor 10% above the poverty line, assuming, of course, that they are working 35-40 hours per week. Economic stimulus effects aside, that is a pretty compelling reason to support an increase.

But returning to our thought experiment, what choice would people make if they knew that any such increase means we would all pay a little more for our groceries, our fast foods, our services, etc.? Would we turn our collective backs on the greater good, or would we embrace the fact that everyone has to make some sacrifices, both business in the form of slightly lower profits and consumers in the form of slightly reduced purchasing power, if we want a more equitable society and a slightly lower disparity in incomes?

We all like to get the best value possible for our money, and I am no exception. Yet, even though I am hardly a paragon of virtue, the logic of increasing the minimum wage is compelling, one to which I readily accede.

More Thoughts On The Minimum Wage

Although I have written several previous posts on the need to substantially increase the minimum wage so that it becomes a living wage, I have been planning an update. However, I doubt that today will be the day for that update since, once again over my morning coffee, I have come across two thoughtful letters in The Star that I feel compelled to share with you.

Although the first letter looks at the poverty pervasive in Toronto thanks in no small measure to the current Ontario hourly minimum of $10.25, the second looks at the broader provincial consequences of such paltry remuneration. I am sure that similar conditions prevail in the rest of Canada.

And, as letter-writer McAdam asks, Where is the report by Ontario’s Minimum Wage Advisory Panel? My suspicion is that Premier Wynne, with a spring election likely, will be sitting on it for a long, long time unless she is that rare, almost extinct breed of politician capable of real leadership.

Re: Time to give poorest a raise, Editorial Jan. 16

There are lots of social and public policy ideas that we can afford to take our time and have a full and long debate about before moving ahead towards a solution, but raising the minimum wage should be a no-brainer. Those who oppose raising the minimum wage to a living wage, like Tim Hudak or the Fraser Institute, obviously have neither the head nor the heart to reach this sane conclusion.

You simply cannot afford to live and eat in Toronto on a minimum wage salary, and those who are trying to do so are getting sick because of it. That’s the information provided by the brave doctors and other medical professionals who are finally speaking the truth about the impact of a society that pays its CEO millions of dollars a year while thousands of our citizens are working hard every day just trying to survive. This is income inequality in its rawest and most brutal form and anyone who condones this situation is complicit in allowing it to continue.

This is one issue that we can begin to fix today by raising the minimum wage. It will not take people completely out of danger, but it will be a sign that we still recognize and reward hard work in our society. And it will be a step in the right direction.

We will need to do much more, like taxation reform to make our system fairer, increased support for seniors, and much more investment in training and development of our young people. We can take some time and talk about those long-term solutions. But raising the minimum wage is urgent.

Katie Arnup, Toronto

The Star points out a few of the huge costs from Ontario’s poverty-level minimum wage, including damage to one’s health, as doctors and other health care providers have noted, besides the hardship and frustration of poverty. But there are many other harmful impacts.

Some 375,000 Ontarians must rely on foodbank handouts to ward off hunger. Recent studies show that about 11 per cent of food bank users in Ontario are employed, but must turn to foodbanks because of their low earnings. Imagine the thousands of volunteer hours devoted to survival programs such as these.
And what about the frustrations for families in which parents must work two minimum-wage jobs in order to make ends meet, and who thus have little time to spend with their children?

My wife teaches many low-income students in Toronto’s Flemingdon Park neighbourhood where this situation is all too common. She sees the emotional price that her students pay when their parents are missing in action, because of overwork and fatigue.
The Star rightly asks: where is the report by Ontario’s Minimum Wage Advisory Panel? When I presented to the panel last fall, a staffperson told me that its report was expected by December. Where is it?

What kind of society tolerates a situation in which hard-working people must still endure poverty? The plight of low-wage workers is a vital issue that should figure prominently in Ontario’s public life, especially as a provincial election approaches.

Anglican Church members across the GTA and surrounding region are currently debating a proposal to raise the minimum wage in two stages to $14.50 per hour by 2015, above the poverty line. If we all raise our voices, we can improve the lives of our society’s poorest paid workers.

Murray MacAdam, Social Justice & Advocacy Consultant, Anglican Diocese of Toronto

Once In A While Their Voice Is Heard

It is a truism to state that the poor have little power to influence the political discussion. Those toiling away at minimum wage jobs, our silent serfs, for want of choice, are one of the invisible minorities (perhaps soon to be a majority?) seemingly easy to ignore.

This was baldly demonstrated last week when the infamously consultative Premier Kathleen Wynne chose the default position so near and dear to politicos everywhere: political pandering. Despite the fact that she struck a panel to study how to raise the minimum wage, she reassured a nervous questioner in Simcoe that a major hike in the minimum wage is not 'on the table.'

Yet sometimes serfs refuse to be ignored. It was with some satisfaction that I watched the following video of a Chicago McDonalds worker challenge the President of U.S. operations as he addressed the Union League Club in that city. While her temerity, doubtlessly borne of both courage and desperation, was not without consequences, she did a service for all who work in obscurity and ignominy:





Returning to Ontario, Star readers in today's edition offer their version of comeuppetance to Ms Wynne:


Re: Infrastructure key to Wynne restoring faith in Liberals, Oct. 6

It is discouraging to read Premier Kathleen Wynne’s assertion that a “major hike” in the minimum wage is “off the table.”

Ever ready to converse, consult and discuss options like the future of wind turbines with Ontarians before making definitive policy statements, the Premier doesn’t hesitate to be declarative on minimum wage policy even though she has a panel of experts touring the province to consult with the public on the issue.
The evidence for a strong social justice position on the minimum wage is stronger than for the pros and cons of wind turbines. Currently, a full-time, full-year worker on minimum wage earns more than $1,000 below the province’s official poverty line. How can the “social justice” Premier morally justify that disparity so quickly?

The Premier missed the opportunity presented by the question in Simcoe to educate the larger public about the inadequacy and injustice of current minimum wage policy and to commit her government to a basic minimum wage above poverty as a social justice priority.
Peter Clutterbuck, Poverty Free Ontario, Toronto

Wynn cool to raising minimum wage to $14, Oct. 8

Our seen-to-be-doing-something premier has got herself on the wrong side of the issue. She eagerly defends her fat-cat friends at the Pan Am games and their salary bonuses (“Wynne backs Pan Am’s $7M bonuses for executives,” Oct. 8) while 9 per cent of all Ontario workers toil at the minimum wage level (having skyrocketed from 4.3 per cent in 2003) of $10.25 per hour.

Oh, she is doing something — the Liberals appointed a panel last summer to study how best to set future minimum wage increases. We don’t need more study. We need prompt and meaningful action. If you’re not prepared to do something, please call an election and let’s get someone in who can.

R. Scott Marsh, Oakville

Our tax system greatly favours the rich. Where are the considerations for people living on poverty and many of them are working?

We have become a sick province when we no longer care about our fellow man. How can anyone call this social justice?

Premier Kathleen Wynne would like everyone to work and stay poor. She should get a life and look at the real picture.

Mary Beth Anger, Toronto

More On The Minimum Wage

The struggle to raise the minimum wage has been the subject of several of my recent posts. The current wage of $10.25 in Ontario is as inadequate as the $7.25 that the majority of jurisdictions in the United States pays, forcing millions to live below the poverty line even if they are working 35-40 hours per week.

Today's Star has an editorial championing an increase, perhaps not the 40% immediate increase that poverty activists are calling for in Ontario, but at least a reasonable step toward that goal.

Consider this startling fact from the editorial:

Some 534,000 Ontarians work 35 hours or more each week in fast-growing retail and service industries, earning the provincial minimum wage of $10.25 an hour. Indeed, with annual earnings under $20,000, these workers will never even crack the paltry official low-income measurement of $23,000 a year. That means a lot of people are working very hard just to remain in poverty.

While praising the Liberals for having made some progress on this file, given that the much-despised previous Harris government had frozen it at $6.85 an hour for nine years, the fact that it has been stuck at $10.25 since 2010 leads the paper to advocate the following:

The least the government should do is continue the same trend of raising the minimum wage 2.5 times faster than the rate of inflation. That would mean an increase of 13.5 per cent, to catch up since 2010. It translates into an increase of $1.40 an hour, bringing the minimum wage up to about $11.65.

That would still leave many full-time workers stuck in poverty. And it would disappoint activists pushing for an immediate increase to $14 an hour – the level that would bring earnings just above the poverty line. But it would mean a hike of almost 40 per cent, a huge burden on many businesses.

While business will always bewail and bemoan any increase that might mean having to share a little more of the profits made possible by their serfs workers, the plan seems eminently doable and a decent start on the road to a living wage that everyone deserves.

A Monday Morning Thought

The Struggle To Raise The Minimum Wage

I have written several recent posts on the campaign gaining traction across the United States to raise the minimum wage to $15 per hour from the current average of just over $7. That struggle has now come to Ontario, where those living in poverty thanks to the current minimum of $10.25 are demonstrating for a boost to $14 per hour. Raising it to that level would put workers just above the poverty line, assuming a full working week.

The minimum wage campaign, which began Aug. 14, is planning similar days of action across Ontario on the 14th of every month in advance of next spring’s provincial budget, when the Wynne government is expected to weigh in on the matter.

As reported by the CBC, according to Statistics Canada, more than 800,000 Canadians were working at or below minimum wage in 2009.

Lest one think that $10.25 is a princely sum, consider the circumstance and words of some of the demonstration's participants:

Toronto meat packer Gyula Horvath has to work a gruelling 50 to 60 hours a week to survive on his wages of just $10.25 an hour.

“It’s no good,” the 22-year-old Hungarian immigrant, who is also supporting a wife on his meagre minimum wage earnings, said Saturday. “It’s very hard to pay rent.”

Call centre worker Jenny Kasmalee, 38, can rarely afford new clothing or other personal things on her $10.25 per hour.

“I have always worked for minimum wage,” she said. “It’s not much.”

Estina Sebastian-Jeetan, a mother-of-two who attended the rally, described some of the challenges she faces as a low-wage earner. "Sometimes I skip my medication in order to make ends meet," she said.

Cogent arguments have been made that having a living rather than a subsistence wage would benefit our entire society. As pointed out by economist Jim Stanford, when people have some money to spare after paying for rent and food, they are likely to spend it, thereby stimulating the economy.

And of course, it is wise to remember that minimum wage jobs in this economy are no longer the domain of the poorly educated. Many university graduates, struggling to find their place in the world, are toiling in retail and service and other traditionally low-paying sectors.

The dean of social sciences at McMaster University in Hamilton, Charlotte Yates, observes that changes in Canada’s labour market are permanent – most notably a penchant for part-time and contract hiring – and are not a temporary blip.

Says Judith Maxwell, past chair of the Economic Council of Canada:

“People over their forties in Canada have no idea what it’s like for a young person trying to find a pathway to adulthood right now.”

Predictably, business is much more conservative and restrained on the question of minimum wage increases. Last week the Canadian Chamber of Commerce published a report, the most pertinent being the following conclusion based on a survey of its members:

In the survey of 1,207 members, 46 per cent said the minimum wage should rise with inflation.

Of course the main problem in tying any increases to inflation means that the workers would continue to live in poverty; they simply wouldn't sink any deeper, which to me is simply another way of ignoring the problem.

The poor have little voice in the formulation of government policy. The moral responsibility for change therefore resides with those of us who have had the good fortune to work productively and profitably throughout our lives; we need to add our voices to theirs and promote change. A letter to one's MPP would be a good start.

Elizabeth Warren Speaks

In addressing a recent convention of the AFL-CIO, outspoken U.S. Senator Elizabeth Warren, about whom I have posted several times, offered some stirring words. Although directed to an American audience, her sentiments are equally applicable here, given the anti-union and anti-people demagoguery and practices of Mr. Harper's regime at the federal level and Tim Hudak's at the provincial (Ontario) level.

Although this excerpt from a much longer speech is brief and short on specifics, it is the tone that is especially noteworthy, along with the reminder that the fight of the people is the country's fight. If the people do well, so does the country, a wisdom and truth that our current Ottawa cabal and others have conveniently 'forgotten'.