Council in Prince Edward County is recommitting to their pledge to pay all employees a living wage.
Council is seeking a certification from the Ontario Living Wage Network as an employer at the “Supporter” level (Tier One) where all direct full-time employees are paid a living wage, and committing to begin raising the pay of all direct part-time employees to the living wage rate.
In November 2021, the OLWN published its most recently updated calculations for the living wage in Ontario. This calculus, which defines a living wage as “the hourly wage a worker needs to cover their basic expenses and participate within their community” is measured by taking a weighted average of three sample groups: a family of four, a single parent with one child, and a single adult. The wage calculation also includes both benefits and wages. Based on this calculation, the lowest living wage in Ontario is Sault Ste. Marie at $16.20/hour, and the highest is Toronto at $22.08/hour. Prince Edward County’s living wage was calculated at $17.95 per hour, up $0.60 from the previous calculation in 2019. The provincial minimum wage is set to be raised to $15.00/hour on January 1, 2022.
Prince Edward County has already reached a level that would qualify it as a living-wage employer at the “Supporter” level, with the lowest hourly rate it pays being no lower than $18/hour—this includes all departments for full-time, part-time, and temporary staff, as well as all union and non-union employees. This does not include volunteer firefighters or summer students who are traditionally compensated at minimum wage with minor years of service increases.
Should council wish to earn “Leader” certification (Tier Two), the municipality would have to meet two conditions, the first of which has already been met. These conditions are:
1. Pay all direct and part-time employees a living wage; and
2. Commit to including a living wage in service contracts for external contractors (i.e., third-party) that provide services to the municipality on a regular basis.
This second condition would require council to commit to raising the minimum service contract hourly rate to at least $17.95/hour for those independently contracted or who have their contracts renewed in the future. This clause excludes those contracted on an ad hoc basis for specific problems, such as plumbers or construction workers. While this would represent the minimum requirements for “Leader” certification the municipality should also consider summer student compensation and increasing it to the living wage amount of $17.95/hour, if it wanted to be considered a leader in the area of compensation.
The Ontario Living Wage Network (OLWN) is an arm of Living Wage Canada, and specifically advocates for the living wage in Ontario by, among other things, supporting local initiatives that would raise pay to a livable wage in workplaces, and performing calculations across Ontario jurisdictions to determine areas’ specific living wages. The OLWN also certifies employers based on how they pay employees, with levels of certification that reflect what percentage and types of employees and contractors earn a living wage.
