Living Wage Hamilton says $19.05 an hour the minimum rate needed ‘to thrive’ locally
The living wage for Hamilton has grown by nearly 11 per cent since last year - marking the largest increase since the rate began being calculated a decade ago.
Living Wage Hamilton, a coalition made up of community groups, announced Monday that $19.05 an hour is the minimum rate folks in the city should earn to account for the cost of living in the city.
That's a jump of 10.8 per cent from 2021 when the living wage had been calculated as $17.20 an hour, said senior social planner Ted Hildebrandt with the Social Planning and Research Council (SPRC).
At a news conference, Hildebrandt described the wage as a rate that allows someone to participate in our community and not just get by." It accounts for housing, food, child care, transportation and other expenses such as internet, medication and recreation.
Minimum wage in the province currently sits at $15.50 per hour after it was raised by eight per cent on Oct. 1. Meanwhile, students under the age of 18 earn $14.60 per hour.
But unlike minimum wage standards set by the government, living wages are voluntary for employers. As of last month, the Hamilton area had more than 40 employers that paid their employees the previous Living Wage Hamilton rate.
Tom Cooper, director of the Hamilton Roundtable for Poverty Reduction, said as the high inflation rate continues to eat away at workers' spending power, it's even more critical" that more organizations adopt the rate.
He noted that this year's jump is the largest year-over-year increase since the rate began being calculated by the coalition.
A recent report from the SPRC found that the cost of food in the province has surged by nearly 19 per cent in the last four years, while the cost of shelter has increased by 18 per cent in that same period.
Looking specifically at Steeltown, the average one-bedroom apartment was renting for around $1,683 a month in September, while the average price for a home was $790,130 in October.
This is the minimum that (employers) should be paying their employees," said Cooper, noting that as of last year, at least 30,000 workers in the city did not earn a living wage.
Cooper said the benefits of paying a living wage are a win-win-win," noting that employee turnover decreases, workers feel valued" and the local economy grows.
One of the organizations already part of the effort is the United Way Halton and Hamilton (UWHH), which both advocates for a living wage and is a certified living wage employer.
Speaking at the event, capacity building and advocacy manager Kirstin Webb said the living wage calculation is a crucial effort" in understanding the actual cost of living in the city.
This is kind of that baseline," said Webb. It opens up the conversation."
Karl Andrus, who leads the Hamilton Community Benefits Network, called on the City of Hamilton to ensure all of their employees - including students and contractors - earn a living wage that allows them to thrive."
He also pointed to the need for increases in support provided to those living on substandard" Ontario Disability Support Program (ODSP) and Ontario Works (OW) rates.
There is a whole more to be done in terms of increasing equity in our society and making sure that people live a decent and fair life," said Andrus.
Fallon Hewitt is a reporter at The Spectator. fhewitt@thespec.com