Adopting ‘living wage’ would set costly precedent: mayor

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This article was published 25/01/2024 (856 days ago), so information in it may no longer be current.

Ensuring all City of Winnipeg employees earn a “living wage” could lead other municipal staff to ask for higher pay and create a ripple effect of new costs, according to Mayor Scott Gillingham.

On Thursday, council directed a motion to the executive policy committee, which calls to implement living wages for all city employees by Jan. 1, 2025. It would also apply to employees who provide city services under private contracts.

However, Gillingham joined Coun. Evan Duncan to vote against the referral.

“To me, wages… should be established in collective bargaining… There’s significant cost implications to raising the base rate because when you raise the base rate of any wage in the City of Winnipeg, all the other wage classifications will want, and will seek, a bump, accordingly. So, it’s not just one band of wages that gets impacted, it’s every band of wages within the collective agreement,” the mayor told media.

The motion also calls for staff to determine the cost of implementing a living wage and what the exact hourly rate should be in Winnipeg, suggesting the Canadian Centre for Policy Alternatives recommended rate of $19.21 per hour would be fair.

The mayor said CCPA is the only organization he’s aware of that estimates such a wage for Winnipeg, so he also has questions about the amount itself. A CCPA official confirmed it is the only group that makes such a calculation, but stressed its numbers are based on a thorough assessment of Statistics Canada data.

Gillingham said many city employees who earn lower salaries work part time, so those wages aren’t typically expected to cover all costs of living, while municipal staff also enjoy substantial health, dental and other benefits.

“I think the City of Winnipeg does a very, very good job right now of caring for its employees,” he said.

Entry-level 311 staff, some summer students and library shelvers are among the lowest-paid city employees and earned $15.45 an hour, as of Dec. 31, data from Canadian Union of Public Employees Local 500 show.

Under the collective agreement, the minimum pay for 311 customer service representatives will rise to $15.69 on March 1 and $15.92 on Sept. 1.

As of Dec. 15, 632 city employees earned less than $19.21 per hour.

Meanwhile, council had approved a living wage of $15 in 2020, which took effect at the start of 2023.

The city has set aside $1 million for a special wage adjustment in 2024 that could help boost wages, CUPE said.

Gillingham said recent changes are expected to increase pay for new transit drivers as well, pending council approval. He did not specify the amount.

Coun. Cindy Gilroy, who raised the motion, hopes EPC will explore the idea and what it would cost.

“I’m really disturbed to find out that we do have some of our employees that aren’t making a fair living wage,” she said.

Gilroy said she expects higher wages would help the city combat poverty and better retain employees.

During Thursday’s council meeting, a CCPA representative stressed the estimated living wage reflects a “bare bones budget” for a family of four with two working parents and two children.

“The City of Winnipeg is in a unique position to provide leadership… by becoming a living wage employer,” said Niall Harney, a senior researcher with the organization.

CUPE Local 500 president Gord Delbridge told council that implementing the policy shouldn’t be that expensive, since only a small portion of city staff earns a lower wage now.

“I think you’ll find that it’s going to cost a lot less than you might expect,” said Delbridge.

The union leader said he continues to hear that some of the lowest-paid city staff rely on food banks.

Gillingham said he can’t confirm or deny if that’s accurate, since it would be up to individuals to share such information with the city.

Meanwhile, the majority of council members approved a few other final votes Thursday, which will see the city:

-Ask the province to require the City of Winnipeg and its unions to complete an essential services agreement prior to any strike or lockout to guarantee services such as drinking-water treatment are never interrupted.

-Request that the province include shisha (the substance used in hookah pipes) on its list of prohibited products under the Smoking and Vapour Products Control Act.

-Allow authorized individuals and rescue organizations to trap, neuter and return feral cats to help control their population.

-Increase water and sewer rates from 2024 to 2027. (A family of four using 50 cubic metres of water per quarter will see their annual bill jump to $1,540 in 2027 from $1,260 in 2023).

-Spend $30 million to repair the downtown Millennium Parkade over several years, beginning in 2025.

-Increase several fines for those who violate street bylaws.

joyanne.pursaga@freepress.mb.ca

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