Stratford’s living wage increases to $23.05

Pictured from left to right are Bill Boon, Nathalia Salas and Sophie Vanstone from Aisin Canada Inc. in Stratford. Aisin is a Certified Living Wage Employer.

The United Way Perth-Huron has been a longstanding partner with the Ontario Living Wage Network because they believe that solving poverty comes down to making sure people have enough money.

While the current minimum wage is $17.20, the living wage in the Grey-Bruce-Perth-Huron-Simcoe region has increased to $23.05.

“Solving poverty comes down to making sure people have enough money, income and housing,” said Ryan Erb, executive director of the United Way.

“What we need to understand is that the minimum wage isn’t enough. A person simply can’t make ends meet when they’re paid minimum wage. But the difference between the minimum wage and the living wage is $6 an hour. That is a lot of money.”

The living wage increase is primarily driven by housing and food costs. The reason it didn’t increase more is due to federal policies on the $10-a-day daycare. Though the $10-a-day daycare policy is not yet available for everyone, it has had some influence on the updated living wage.

The living wage is calculated by considering housing, transportation, child care, food and other expenses such as internet access, a modest annual vacation and clothing. These expenses are weighed against federal subsidies, government taxes, transfers and benefits to calculate the final living-wage amount.

Two of the most prominent social determinants of health are income and housing. United Way works on policy issues to make sure people have the income they need to make a living.

Employers will wonder how they can pay a living wage when they are struggling, but the United Way and Ontario Living Wage Network are here to support businesses that want to provide a living wage.

“Local employers continue to tell us that actually paying a living wage has increased productivity, reduced absenteeism and turnover,” said Erb. “In the end, a number of our certified employers tell us that it actually improves their bottom line. So, there is a business case for a living wage beside the humanity case.”

The Ontario Living Wage Network will work with any employer to put them on a path towards paying a living wage to their employees. Once a business is paying a living wage, they can apply and will be certified within two weeks.

“Some small businesses are struggling,” said Erb. “We understand that here at the United Way. But we also understand that we have to, as a society, find a way to help everyone get to an income level they can manage, whether it is because of federal policy or because of increased wages – it can happen from either direction and both is probably the answer.”

To become a certified living wage employer, visit ontariolivingwage.ca and click certify.