New Living Wage rate for Muskoka not surprising to local officials

The total number of adult persons in low-income households in Muskoka has been rising since 2005.

A new report indicates that the minimum wage in Muskoka is not enough for residents to live comfortably.

That’s not a revelation to Michaele Robertson. In fact, news like this pleases her for one reason only.

“No I’m not shocked by the disparity between minimum wage and what people need to live. I’m actually happy every time the question is raised because it just raises people’s awareness, which I think is a big part of the work that needs to be done on this … I’m troubled by the fact that minimum wage does not help people to live a dignified life in Muskoka.”

Robertson made the comments following an opinion piece this week from United Way Simcoe Muskoka’s chief executive and philanthropy officer Brian Shelley, regarding the Ontario Living Wage Network’s announcement of a living wage of $20.60 an hour in Muskoka, up from the $18.55 an hour estimation posted by the network for 2021. The province’s minimum wage is presently $16.55 per hour.

Robertson is the co-founder of Residents Against Muskoka Poverty, a volunteer organization with a mission to reduce regional generational poverty by raising awareness and supporting programs that are working to lift people up, and out of poverty.blob:https://rampupmuskoka.ca/8c58fa24-8b6b-4a90-8f02-7411f9b24250

She said she wishes more businesses would join the Ontario Living Wage Network, which is, according to information on its website, comprised of a group of employers, employees, non-profits, researchers and proponents of decent work standards for all Ontario workers.

According to the Ontario Living Wage Network, a living wage is the hourly wage a worker needs to earn to cover their basic expenses and participate in their community.

“With the cost of everything from groceries to rent and everything in between continuing to rise, we should not be surprised by this news,” Shelley said in his opinion piece. “This statement from the Ontario Living Wage Report is as simple as it gets. Living Wage should not be a political lightning rod — it is simply stating that if we want folks to live above the poverty line, they need to earn enough to do so. Unsurprisingly, the wage that an individual needs to ‘live on’ in our community has once again gone up.”

A living wage, according to the network’s webpage, is not the same as the minimum wage, which is the legislated minimum all employers must pay and is set by the provincial government. The living wage draws on community-specific data to determine the expenses for a family with two working adults and two children. Living wage employers voluntarily decide to pay a living wage and maintain their certification as new rates are calculated for their area.

Beth Houston, the chair of Gravenhurst Against Poverty, said she “100 per cent” agrees with Shelley’s comments.

“People can barely get by on a living wage and, sadly, in Muskoka, the minimum wage is less than the living wage. Forget about improving one’s life; people are just falling further and further behind,” she said.

A 2022 District of Muskoka report stated that almost 10 per cent of Muskoka’s total permanent population (66,674) is living with low income.

“The total number of adult persons in low-income households in Muskoka has been rising since 2005. This is consistent with Canada-wide trends. While rates of child poverty have declined, rates of adult poverty, particularly among those unattached and in couples without children, has increased significantly,” the report read.

The report also stated that “the indirect costs of poverty in Muskoka are estimated to be $123.3 million per year, and these costs include those associated with health care, the justice system, and with lost potential tax revenues. This amount is extrapolated based on studies noted in this report and would require an in-depth research project to fully know the true cost of poverty.”

Robertson said one other aspect she finds troubling is for people to get out of poverty, they must be able to save money instead of just getting by with minimum wage.

“How do people actually surmount the obstacles they face and get themselves out of that cycle of poverty? If you can’t save, then that makes the situation even more dire,” she said.

The solution? Robertson said she feels any answer regarding the disparity between the two wage levels must come from within the impacted communities.

“I think as citizens, we just have an obligation to try and figure out how to close that gap,” she said.

Brent Cooper – Muskokaregion.com – Saturday, November 11, 2023