On Oct. 1, 2016, Saskatchewan’s minimum wage skyrocketed from $10.50 per hour all the way to $10.72 per hour. Of course, any wage increase is welcome, but this increase does nothing to help those who are struggling to survive.
An hourly rate of $16.77 has been identified by the Saskatoon Poverty Reduction Partnership as the minimum rate of pay for families to survive on while working a minimum of 35 hours per week. These findings are based on a household with two parents and two children, with each parent requiring this base rate in order to comfortably get by.
Of course, raising the minimum wage does not come without its criticisms. Payroll is a substantial expense for businesses and many fear that an increase in minimum wage will force employers to cut jobs, thereby creating unemployment. There’s also the argument that enforcing a living wage will do nothing more than cause inflation.
However, one business in Saskatoon has been used as a case study to disprove these notions. The Better Good, a fair trade, eco-friendly store on Broadway Avenue has been paying employees a wage of $18 per hour for over a year with fantastic results.
It is undeniable that payroll is one of the greatest expenses that businesses face, but secondary beneficial factors are often overlooked as positives to creating a living wage. Many businesses face high turnover rates, diminished working conditions, and tired or disenfranchised workers who are often working two or three jobs to make ends meet.
Establishing an $18 per hour wage at The Better Good has alleviated these pressures on workers and the business has yet to lose any employees since the change. The business therefore saves money and time that would have otherwise been spent on seeking job candidates, filling the gap or training new employees.
When people are able to feel comfortable in their job positions and create a life for themselves by receiving equal pay for equal work, their quality of life improves and their quality of work improves. It is a mutually beneficial relationship between the worker and employer.
Of course, The Better Good is only one example and it is always important to continue looking into the economic impacts of certain wage increases. However, in businesses and countries that have these policies instated, it seems to be working.
Living wages do not just create a better work environment and give people a couple extra bucks. Making enough money from one job is important insofar as giving families more quality time to spend with one another. It affords people quality of life and makes society better when there are not such high levels of socioeconomic division. No one who works 40 hours a week should be living in poverty.
Among the various social determinants of health, wage inequality is one of the greatest indicators of lifespan. It has been proven that there is a direct correlation between income levels and life expectancy. A study from Harvard University in 2016 looked at life expectancy and income in the United States, and showed that the richest men will live an average of 15 years more than poorer men and the richest women will live 10 more years that the poorest women.
When life expectancy and quality of life are so directly impacted by income levels, it should be a right to earn a living wage.
This also applies to students, who are either working three jobs throughout the year or piling up student loan debt. Tuition is continually increasing, textbook prices are skyrocketing and if no one is going to take a bold stance on these issues, then a living wage also makes sense for students.
Quality of living is important for everyone. A living wage would help families have more quality family time, better access to goods and services and it would help students make it day-to-day. In fact, a living wage is essential for the betterment of society.
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Travis Hebert
Graphic: Sarah Foley