Some city workers make minimum wage. Is that fair?

A sharp difference of opinion surfaced at Monday's city council meeting between rookie Couns. Angela Caputo (Ward 3) and Stephan Kinach (Ward 4).

The difference emerged when Caputo and Ward 2 Coun. Lisa Vezeau-Allen introduced a resolution calling for the city to introduce a living-wage policy after Steve Facey, the city's finance manager, disclosed that a significant number of employees work for minimum wage.

In his first-quarter financial report, Facey talked about the $1.05-an-hour hike in minimum wage that took effect on Oct. 1. 

"This will not only affect 2023 year-end but this will also impact the 2024 budget," Facey said, adding: "This increase of $1.05 per hour equates to approximately $40,000 for the fourth quarter. This is a rough estimate, as it does not include potential impacts of compression."

Facey was unable to provide an exact number of city workers toiling for minimum wage, but said most of those jobs are seasonal or part-time positions occupied by students.

The following is the full text of the living wage resolution introduced by Coun. Caputo:

Living wage

Mover: Coun. A. Caputo
Seconder: Coun. L. Vezeau-Allen

Whereas a living wage is defined as the minimum income necessary for a worker to meet their basic needs; and

Whereas the Sault Ste. Marie Poverty Round Table published the Progress On Impact Report in January of 2020 and an action item was to encourage employers to pay a living wage to all employees; and

Whereas the living wage for Sault Ste. Marie according to Ontario Living Wage Network is currently set at $19.70/hour; and

Whereas part-time and student jobs recently posted within the Corporation of the City of Sault Ste Marie are being compensated at a rate of $15.61/hour or less; and

Whereas a living wage could help bring more jobseekers forward to these very important, front-line positions within the corporation; and

Whereas quality of life is one of our strategic pillars;

Now therefore be it resolved that staff be requested to report back to council regarding instituting a living wage policy for the Corporation of the City of Sault Ste. Marie.

Coun. Kinach countered by pointing out that Caputo was proposing a 26 per cent increase.

That, Kinich said, compared to average annual increases of 3.38 per cent for unionized workers in the city's community services division, contained in a five-year agreement ratified on Monday.

"Most of these [minimum wage earners] are not living independently. They’re living at home, supported by parents," he said.

"As an employer, I think we have a responsibility to the taxpayers to not set this kind of precedent. How can we go into negotiations next time when a group that doesn't have representation just got a [26 per cent] increase?"

Coun. Caputo said some of the city workers earning minimum wage are members of collective bargaining groups and must pay union dues.

"That's unfair," Caputo said. "They're not even getting their minimum wage to take with them."

"With the rising cost of living, minimum wage does not allow folks the ability to keep a roof over their head and food on their bellies. These are our citizens."

"While I sit in rooms discussing how to combat homelessness and increase accessibility to affordable housing, I cannot help but think: Let's all just pay working folks a little more."

"Many ask how we can afford to do this? But I would ask how can we afford not to? These are our people," Caputo said.

City councillors voted on Monday night to have staff investigate the pros and cons of a living wage policy for the City of Sault Ste. Marie.