The hourly wage needed for a family of four to meet basic living expenses in London has been set at $15.53.
An expert panel made up of private and public sector community leaders announced London's "living wage" Friday.
The hourly wage, which works out to $30,284 annually, is based on two full-time wage earners in a household with two children. It allows $1,374 for rent and utilities, $651 for food, $156 for clothing, $620 for transportation, and $1,398 for child care per month. It does not include cash for savings, retirement, or debt repayment.
Mike Moffatt, assistant professor of economics at the Ivey School of Business, was one of the panel's contributors. He says the panel would like to see more local businesses strive to pay all of their employees at this level or above.
"We think for most businesses they are there or close to it," says Moffatt. "We're hoping with today's announcement that businesses are watching. Many of which will say 'we're already doing that maybe we should acknowledge ourselves' or go '95-97% of our employees are there, could we get everyone up to 100% and become fully living wage compliant?'"
London joins a number other Ontario cities to set a living wage, including Waterloo, Hamilton, Windsor, and Ottawa.
Living wage is different than minimum wage as it's a voluntary program that businesses can choose to join.
Moffatt says eight city employers have already formally signed up for the program and more are expected to do so in the coming months.
"We know a lot of other companies are close, they just want another few months to make sure they have all of their contracts in place and all of their employees up to that level," says Moffatt. "I expect over the next six to 12 months we will have many more companies jump on board this."
Libro Credit Union is one employer already exceeding London's living wage.
"We've made a committment for all of our staff that we will adopt the highest living wage across southwestern Ontario," says Stephen Bolton, president and CEO of Libro. "It's a little higher at $16.47, so that's the number we're looking at. Having a number in London for the conversations to start is really, really important."
Ellipsis Digital, Western Fair District, Downtown London, Goodwill Industries, King's University College, and the Middlesex-London Health Unit are among other organizations committed to paying a living wage. Other businesses interested in making the pledge can do so at www.livingwagelondon.ca.
