Calgary's living wage calculated at nearly $10/h more than minimum wage

A joint report on the cost of living in Calgary has calculated a living wage in the city is $24.45 an hour — but even that may not enough for some workers.

Alan Pollard, 42, works as a head chef at a restaurant in Priddis, just southwest of Calgary, and as an Uber Eats delivery driver. Pollard says as a cook he is just a couple quarters short of the calculated hourly wage, earning about $24 an hour after tips, but says that income is not enough to live in Calgary.

"I have no idea how they got it that low," Pollard said of the living wage result.

The Alberta Living Wage Network released its report for 21 communities in the province, ranging from $17.55 an hour in Medicine Hat to $31.40 an hour in Jasper.

It assessed how much a full-time worker would need to make to cover basic living expenses — like food, clothing and shelter — while still managing unexpected expenses and participating in the community.

Last year, Calgary's living wage was $0.75 an hour lower, according to the organization.

The Alberta minimum wage is $15 an hour, tied with Saskatchewan for the lowest in Canada, and nearly $10 lower than the calculated living wage. About 57.2 per cent of minimum wage workers in Alberta last year were 25 or older, according to the most recent Alberta Minimum Wage Profile.

Meaghon Reid is the executive director of Vibrant Communities Calgary, which co-ordinated on the report for Calgary. She said the report calculates what is considered a modest lifestyle without having to trade off on basic needs — as some people earning a minimum wage have had to do "to make ends meet."

"We have heard from seniors, for example, who take their medication every other day so that they're able to eat every day," she said.

The provincial report lays out cost savings in child care, citing the federal-provincial child-care agreement, and reduced energy costs under the regulated electricity rates in Alberta.

But those savings are eliminated, Reid said, by shelter costs. She said that's why Calgary outweighs Edmonton's living wage.

Pollard says Calgary's living wage actually underestimates shelter costs.

Before moving in with his parents in late 2019, Pollard paid about $800 a month for a basement suite. Rising prices prompted him to move back in with his folks and he's stayed there since.

Pollard said he's watched the rental price for that basement suite more than double.

Raising the minimum wage?

Some businesses have committed to paying the living wage.

Nick Ross says paying people a living wage is a "no-brainer," and while it costs more for employers, he finds there's less turnover.

He's the chief technology officer at Home Spritz, a marketplace that connects customers to house cleaners.

"Cleaners are exceedingly often underpaid and undervalued. What that leads to is constantly looking for better opportunities," he said.

"Paying people well — crazy idea — turned out to be a very successful move."

However, the Canadian Federation of Independent Business (CFIB) cautioned against mandating higher wages provincewide.

In May, the CFIB released a report that analyzed affordability and raise increases. It polled business owners about mandating a $20/hour wage and projected more than 73,000 businesses would be at risk of being unprofitable.

Brianna Solberg, CFIB provincial director for the Prairie region, said raising the minimum wage can lead to an inflationary cycle: employees are paid more, prompting businesses to raise prices to pay their staff, then consumers paying those higher prices require a wage bump to keep up.

"I think all of those small businesses that can afford to pay more are already paying more," Solberg said.

She was also uncertain about the living wage result, believing the methodology can be subjective and "a little bit arbitrary."

Instead, the CFIB report recommends governments make policy changes. 

For businesses, it recommends tax relief.

For employees, it says the government should reduce payroll costs, such as employment insurance and payments into the Canada Pension Plan. It also urges the government to address the cost of living, create a stable framework for minimum wage increases and help vulnerable workers.