Living wage higher in Brandon than Winnipeg: Report

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This article was published 04/07/2017 (3401 days ago), so information in it may no longer be current.

It costs more to live in Brandon than Winnipeg, according to a recent report from the Canadian Centre for Policy Alternatives, which measures how much money a family of four must make to live comfortably in a Manitoba community.

The CCPA report, entitled “A Family Living Wage for Manitoba 2016-17 Update,” suggests the most recent living wage for a family of four (two parents, and two kids), is $14.54 per hour in Winnipeg, $14.55 in Brandon, and $15.28 in Thompson.

Not to be confused with minimum wage, a living wage is the amount that earners must bring home to their families, based on the cost of living within a particular community. It’s determined by a formula — annual family expenses equals living wage plus government transfers, minus EI, CPP and income tax.

The purpose of measuring the living wage, and the release of the CCPA report, is to call upon employers in both the private and public sectors to pay their employees enough to provide their children with the basics.

Living wages are not a reality for all Manitoba families. Child poverty continues to be an issue in the province, with 16.2 per cent of children living in poverty in 2014.

“This reflects what we have been hearing in the community for quite some time,” said Coun. Lonnie Patterson (South Centre), chair of the City of Brandon Poverty Committee.

This living wage update, which was written by Lynne Fernandez, shines light on two important developments: the progress made as a result of the new Canada Child Benefit, and the increase in housing costs in the province.

Rent for a family of four in Brandon has increased 37 per cent since 2013.

“For some, it’s a challenge to find a place to live on their current wage,” Patterson said.

Housing has been on the Poverty Committee’s agenda each year and they are working toward better defining the issue at hand, and creating a specific solution, Patterson said.

“We’ve developed a partnership with the Brandon Neighbourhood Renewal Corporation,” she said. “A number of people are now able to get a little bit more attention, and that’s definitely what’s been happening.”

As of July 1, 2016, families with an income under $100,000 had access to a much more generous child benefit, to replace the old system of federal child benefits.

Although the benefit was only available until the end of 2016, it boosted family income enough to compensate for the increase in the cost of living, Fernandez said.

“For example, our Winnipeg family receives $810.52/month,” Fernandez said in the report commentary, referring to the new Canada Child Benefit.

Despite the proof behind the benefits of an adequate living wage, critics continue to insist that providing a living wage is not necessary, saying that the majority of people making minimum wage are teenagers, Fernandez said in the update commentary.

As an incentive for employers, research conducted by Economist Armine Yalnizyan suggests that wage increases boost employee performance and loyalty, making employers who provide living wages more profitable.

The number of people in Manitoba earning minimum wage had increased to 6.8 per cent by 2016, up from 4.8 per cent in 2006.

“The percentage of Manitoba minimum wage workers employed by companies with more than 500 employees is 41 per cent, so not all these workers are working in small enterprises.” Fernandez said.

Manitoba’s minimum wage is set to increase to $11.15 per hour this year.

Patterson said she’s interested to see how policy changes to Manitoba’s Rent Assist will be reflected in the CCPA’s next update.

» The Brandon Sun