Low-income citizens of Ottawa can look forward to an improved standard of living if the city adopts a living wage plan.
The proposal for such a plan for all contract employees with the city has been approved by the community and protective services committee.
It is one of 16 recommendations in the approved Poverty Reduction Strategy that was presented by the Poverty Reduction Strategy Steering Committee.
According to the committee's report, the recommendation for a living wage policy received significant support from Ottawa citizens at two public consultations in September 2009.
Public support was confirmed at a recent meeting in the community and protective services committee where several members of ACORN, a grassroot organization working against poverty, showed up wearing a sticker saying “I support a Living Wage.”
ACORN members believe that a living wage would break the poverty cycle for many people.
“It’s a start to helping reduce poverty, and for people living on a minimum wage, it creates hopes for a brighter future for themselves and their children,” says Nadia Willard, an Ottawa ACORN leader.
The Poverty Reduction Strategy report uses ACORN’s estimate of a living wage of $ 13.25 an hour, without benefits, for a single person who works for 35 hours a week.
With a wage of $13.25 an hour, the employee should earn enough to meet basic needs such as food, shelter and clothes and creates avings for the future.
Unlike the present Ontario general minimum wage of $9.50 an hour, the proposed Ottawa living wage would ensure the employee lives above the poverty line.
Advocates of a living wage policy point out the potential economic benefits of a living wage.
“If you invest and put your money into the spender, you’ll invest in the city itself, cause people need the money to spend," says Daniel Oickle, an ACORN member.
He himself lives on an income of around $ 1,800 per month, because he’s disabled, and relies on the Ontario Disability Support Program (ODSP).
Kanata South Coun. Peggy Feltmate, a member of the community and protective services committee, also sees the potentials of a Living Wage policy in Ottawa.
“People need a certain income to meet desired needs,” says Feltmate.
“A living wage would make a lot of pride and result in less stress among the employees. They would also contribute more to the community by paying their income taxes.”
Gloucester-Southgate Coun. Diane Deans, chair of the community services committee, says she’s convinced the city council will also adopt the plan. It’s expected to be presented to council on Feb. 10.
If approved, a further analysis of the different options will be presented to the committee in spring of 2011.