For a four-person family with two adults and two children living in Nipawin, the amount needed to provide the basics – the living wage – is $15.17 per hour.
That’s the number the Diamond North Credit Union calculated for the town with the help of the University of Saskatchewan’s Charles Plante when it sought to become certified as a living wage employer. Over a year, that family would have to make $59,628. The median income of a Nipawin household, according to the 2016 census, is $57,131.
“With nearly 100 staff who live and work in a number of communities in the Northeast, being recognized as a living wage employer reflects our belief that our staff are more than just employees, they are valued and contributing members of our community and society,” wrote John Shenher, the credit union’s chief executive officer, in an email.
The living wage is not the same thing as minimum wage, which is enforced by law as being the absolute lowest price one can pay an employee. It is meant to be more of a reflection as to what’s needed for an employee to be healthy, productive and able to support their families.
Cris Richer, the credit union’s human resources manager, said making sure they paid a living wage was a way Diamond North could reflect its belief in the key values of the co-operative movement: self-help, self-responsibility, democracy, equality, equity and solidarity.
“A big part of that is social responsibility and that’s where the living wage piece fits in for us, is it’s really about ensuring that our employees are able to be contributing members of society who can contribute towards social activities, families and local businesses.”
Calculating the living wage is a standardized process that takes into account employment income, government transfers and taxes. It assumes the two adults are making the same amount working 35 hours a week, and it assumes their children are four and seven years old. Expenses calculated include food, clothing, shelter, childcare, healthcare, saving for post-secondary education, operating a single vehicle and a contingency fund.
The living wage in Saskatoon is $16.19 per hour, while in Weyburn, it’s $15.59 – a figure calculated by the Weyburn Credit Union for their own living wage certification. For Regina, it’s $16.46.
Not everyone agrees that living wages are an effective way to combat poverty. The Fraser Institute, a free-market think tank, said they can hurt the very people it aims to benefit by reducing opportunity for low-skilled, low-education workers. They said studies from the United States showed that when wages are increased, employers tend to hire more experienced workers with more formal training.
As for Diamond North Credit Union, the financial institution found it does pay its employees at the living wage or higher.
“It was an effort to confirm what we already suspected,” Richer said, “which is: Diamond North Credit Union continues to pay, in all of our communities, wages and salaries that are above what the living wage in this area is determined to be.”
