Living Wage lifts BC families out of “working poverty”

More than 300 employers pay all staff a living wage — $24/hour in Metro Vancouver

Rents are continuing to climb. Prices at the grocery store are downright astronomical. And don’t forget the cost of gas or interest rates right now.

Taken all together, there’s never been a more expensive time to live in BC. $15.65 may be the minimum wage in BC — but it’s not even close to the bare minimum we all need to scrape by.

“The minimum wage simply doesn’t take into account how much it costs to live life,” says Anastasia French, provincial manager of Living Wage for Families BC (LWFBC).

‘Minimum wage’ is the lowest amount that employers are legally mandated to pay their workers. ‘Living wage,’ on the other hand, is the amount that someone would actually need to earn in order to afford the basic necessities in their community.

And those two numbers rarely align, sadly.

This discrepancy is what inspires LWFBC. The organization’s mission is to calculate the true cost of living, and encourage employers and government to adopt a living wage, not a minimum wage, as pay.

LWFBC is a program of Vancity Community Foundation — and the recipient of one of Vancouver Foundation’s latest Systems Change grants.

Here’s how they’re making a difference in our communities… and on our paycheques.

How the living wage is calculated

LWFBC used its Vancouver Foundation grant to help fund its annual calculation of the living wage.

Each year, LWFBC partners with the Canadian Centre for Policy Alternatives to crunch the numbers. What does it cost to live comfortably here?

This year, LWFBC determined that the living wage in Metro Vancouver is now $24 — a staggering jump of 17 percent from last year’s living wage.

Different parts of the province (and country) will have different living wages, influenced by the cost of living in each region. For example, housing in Vancouver is more expensive than housing in Prince George, so the cost of living will be higher in Vancouver.

The living wage calculation is very conservative as it doesn’t include enough for many families to save, pay down debt, or go to the movies. It’s based on the hourly amount two working parents would need for a basic standard of living. This includes expenses like housing, food and child care.

Why living wage matters

We all work hard every day. And yet those of us doing the work that is necessary to make our communities run well (through childcare, food service or cleaning) often receive minimum wages or low wages.

Thirty percent of families in Metro Vancouver earn a wage below their regional living wage. Nearly 900,000 working B.C. residents aren’t making enough for life’s essentials — this group is said to be living “in working poverty.”

This all has an impact far beyond our bank accounts. Low wage work is linked to higher health care costs, poorer educational outcomes, and lost tax revenue from reduced economic activity.

LWFBC exists to address these issues that result from working poverty. But the organization also aims to reframe the troubling narratives our culture holds about the value of work.

“Many of us were taught to look at work and wages from a merit-based perspective. We’re told that if we work hard enough we will have a good life; it follows that those who can afford a high standard of living must be working harder than others, and those who live in poverty must deserve it. But this perspective is inherently flawed,” writes Genesa Greening, executive director of Vancity Community Foundation.

LWFBC uses its resources to advocate for better government policies nationwide. While that advocacy is often centered around pay, the organization also champions other causes that impact families and workers, like paid sick leave.

A growth of Living Wage Employers

Importantly, LWFC doesn’t just talk about the living wage — it takes action. The organization certifies businesses that pay every employee at or above the living wage as Living Wage Employers.

Happily, the number of living wage employers in B.C. has nearly doubled over the past three years. There are now 400 living wage employers, up from 160 before the pandemic. With the Campaign’s announcement of the latest living wage, 1,000 people in B.C. received a pay raise because of their employer’s commitment. But other employers, like the City of Vancouver, have ended up losing its certification by ending living wage pay to all employees.

“The pandemic inspired a lot of business owners to realize that the number one thing they can do to keep staff is to pay people more,” explains French.

Living wage is a powerful recruitment tool for employers, especially in a time of labour shortage. Paying a living wage is good for retention, and good for your brand.

“When businesses become living wage employers, they want to promote the concept and tell the world,” French says. “Their growth inspires more growth.”

And in the end, living wage is also good for our community. “When low-wage workers receive an increase, they’re more likely to spend it where they live,” says French. “It brings up the whole ecosystem.”