Lecture 5 15 and Fairness
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Monterrey Institute of Technology**We aren't endorsed by this school
Course
MATH 13A
Subject
Economics
Date
Dec 16, 2024
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28
Uploaded by JusticeEnergy2017330
Speaking Truth To Power Lecture 5: The $15 and Fairness Movement: Origins and Protest
Introduction: The Fight for $15 and Fairness Movement1.Who works for minimum wage in Canada?a.in Canada?b.in Ontario?2.Origins of the Fight for $153.$15 and Fairness Canada4.Dispelling the Myth(s) of a Living Wagea.Low-Wage Workers are Studentsb.$15 Will Hurt Small Businessc.Kills Jobs/Business Will Higher Fewer Workersd.Minimum Wage Does Not Have an Impact Because Employer’s Cut Hourse.Replacing Workers With Technologyf.Inflation5.Conclusions
Who works for minimum wage in Canada?
Who works for minimum wage in Canada?
Who works for minimum wage in Canada?(in relation to emergence of $15 and Fairness Movement 2012-2014)
Who works for minimum wage in Canada?(in relation to emergence of $15 and Fairness Movement 2012-2014)
Who works for minimum wage in Canada?(in relation to emergence of $15 and Fairness Movement 2012-2014)
Minimum Wage by Province (2018)
Big Business? (2016)
Who works for minimum wage in Ontario? (2018)•minimum wage $11.40 (2016) to $14.00 (2018 to 2020) to $15.00 (2022) to $15.50 (Oct. 1st2022) $16:55 (2024)Quick Facts (https://news.ontario.ca/en/release/1001390/ontario-working-for-workers-by-increasing-minimum-wage-to-15-an-hour) •a full-time worker making the general minimum wage will see their annual earnings increase by $1,350 in 2022.•from January-November 2021, there were 767,300 workers at or below the proposed general minimum wage of $15 in Ontario •most minimum wage earners are women •nearly 73 per cent of working 15 to 19-year-olds are at or below the proposed general minimum wage of $15 in Ontario •the industries employing the most minimum wage earners are accommodation and food services, and retail trade.•nearly 37 per cent of workers at or below the proposed general minimum wage of $15 in Ontario are in retail trade and almost 24 per cent are in accommodation and food services.
Who works for minimum wage in Windsor? •social problems = growing income inequality•91,170 Windsor-Essex work and made less than $20,000 a year (2011)•33.3% Windsor residents live in low-income neighbourhoods (2014)•1 in 4 children under 5 years (26%), 1 in 5 children under 17 years (22.6%) and 1 in 10 seniors (11.4%) live in poverty (2019)•32.1% child poverty rate in Windsor West (double the national rate) •housing unaffordable for 44% of households that rent (2019)•rate of unemployment 8.2% Windsor and Essex County (5.6 in Ontario and 5% Canada-wide) residents have a lower before-tax income for all types of income (individual, full-time, household) compared to Ontario (2019)•10.8% or 24,355 Windsorites in poverty(2022-2023)•Municipal Quality of Life Dashboard https://www150.statcan.gc.ca/n1/pub/71-607-x/71-607-x2023025-eng.htm•Low Income Community https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1110024101All stats and data from: Canada. Statistics Canada. National Household Survey (NHS) Pro le 2011, Windsor, CMA, Ontario. Catalogue no. 99-004-XWE. 2013. February 24, 2015. http://www12.statcan.gc.ca/nhs-enm/2011/dp-pd/prof/index.cfm?Lang=Eand Pathway to Potential, Reality Check: Poverty in Windsor-Essex, 2011, Community Needs Assessment Windsor-Essex Health Unit, 2019 https://www.wechu.org/reports/community-needs-assessment-2019-update-reportWindsor Star (June 2018) and United Way, https://www.weareunited.com/servlet/eAndar.WebExtDocument/33383532/3734/2014CostofPovertyReport-Web.pdf
CTV News Web Poll – July 13, 2023
Raising the Bar: Is there a solution? •Minimum Wage = provincially legislated •25% increase to meet 1976 standard•current increase $15 by 2040•Living Wage = takes into consideration the cost of basic necessities in different communities•Windsor $18.65/hour •Toronto $25.05/hour •Vancouver $2https://www.ontariolivingwage.ca/living_wage_by_region•Industrial Wage = average of all workers except farmers •50% to 60% common practice•$24.93 (non-union) and $34.12 (union) in 2023•$29.43 (non-union) and $34.64 (union) in 2022•$16.55 is 48% of union wage
Origins of the Fight for $15 Movement•November 29, 2012•New York City•fast-food workers1.living wage2.better working conditions3.right to join a union (union recognition) •wage theft•food stamps •mustard•national and global
Origins of the Fight for $15 MovementFrom Laughable to Viable
$15 and Fairness Canada •part-time, casual, contract and temp agency work•fair scheduling •vacation time•paid sick days•make it easier to join a union •end workplace harassment and bullying•protect workers from unjust dismissal •$15/hour living wage
Dispelling the Myth(s) of a Living Wage•Increasing the minimum wage will: •harm workers••it will result in unemployment•impact labour costs•raise prices
Busting Minimum Wage Myths: Low-Wage Workers are Students •“Minimum wage is for teenagers. It’s just a starter wage.”•data driven – argument •minimum wage workers are older, have greater family responsibilities = need wages to keep families out of poverty•more and more students are choosing not to work or cannot find work•older workers pushing them out of the market•even if this myth were true, does not justify paying students sub-poverty wages•there is little data that proves students lose hours at work or jobs if minimum wage increases•Research that does exist lists the problem as “insignificant to non-existent”
Busting Minimum Wage Myths: $15 Will Hurt Small Business•often combined with student myth (not all businesses can pass the costs on to customers – this makes it hard for unskilled workers to get a job) •2/3 of low wage workers employed by large firms•big business speaks for small business•in U.S. largest retailers i.e Walmart, McDonalds have seen profits continually rise since 2007•Walmart makes $13,000 per worker•lobbyists •most small business owners support minimum wage increases 1.affects direct competitors2.increases consumer spending power•real concern is not that workers earn too much, but that consumers earn too little3.helps the economy4.results in better workers, less turnover, increased productivity, and satisfied customers http://www.ontariolivingwage.ca/living_wage_employers_directory
Busting Minimum Wage Myths: Kills Jobs Because Business Will Higher Fewer Workers •“When you raise the price of employment, guess what happens? You get less of it.”•not how employers actually behave = last ditch effort•would entail less production •Cara Foods (The Keg, Kelseys, Swiss Chalet) = 2.5% increase, no inflation•Seattle – restaurants opening at a ”dizzying pace” since $15/hour hike•Switzerland, Denmark, Sweden = low wage workers paid better = generates more jobs = higher employment rate•60,000 jobs created in Ontario since July, 2018 unemployment rate at 5.4% - lowest in 18 years•5.8% in January 2024
Busting Minimum Wage Myths: Minimum Wage Does Not Have an Impact Because Employer’s Cut Hours•“Employers will cut workers hours rather than reduce the total number of workers on the pay roll.”•same as employment argument •business needs to provide service to meet demands•San Francisco (2004) no significant effect on employment (2011) 2/3 min wage increase offset by price increases rather than cuts•reality check: low wage employers have been cutting workers’ hours for years
Busting Minimum Wage Myths: Replacing Workers With Technology
Busting Minimum Wage Myths: Inflation•“The minimum wage increase will cause inflation that erases the wage gains. The price of ‘stuff’ will go up.”•Tim Hortons (2014) minimum wage raised from $11.00/hour to $11.25/hour = 10 cent price increase•prices raised 10 cents in 2018 (minimum wage) and on Nov. 26th2019 (coffee prices) •inflation does not mean that all prices go up, but that the average price goes up•some go up a lot, some go up a little, some decrease•not an irrational concern•but prices generally only go up where low-wage workers are employed – employers pass the cost along•cost than is minimal •study in US found that a 10% wage increase would raise food prices by 4% and overall prices by 0.4% (40 cents on $100)•another US study said inflation would increase 2.6 to 2.7 per cent – a change so small it was smaller than margin of error in the study•a little inflation is good for the economy = one thing that slows the economy is when corporations sit on large amounts of cash – this would cause them to spend/invest it
Conclusions:
What Can I Do?E-mail Your Local MPP, Premier Ford, and Prime Minister Trudeau here: https://www.15andfairness.org/protectworkersE-mailPledge the $15 and Fairness Campaign by voting for politicians that support raising the minimum wage. PledgeGet Involved (at a rally, volunteer at a campaign, organize for increased wages or a union in your workplace). GetBug McDonalds (or other low wage employers) on social media Bug
Readings: •David Green, “The Case for Increasing the Minimum Wage: What does the academic literature tell us?” Canadian Centre for Policy Alternatives (April 2015) pp. 1-12.•Visit the $15 and Fairness website: https://www.15andfairness.orgRead about the movement’s demands and actions. •Nick Day, “We Won’t Back Down: Fighting Lessons from $15 and Fairness,” Briarpatch(February 2018) pp. 1-4. •Simran Kaur Dhunna and Parmbir Gill, “With Our OwnHands: Reflections from Workers Fighting Wage Theftin Brampton,” Briarpatch (November 1, 2022)•Melissa Graham, “Employment and Ableism,” Our Times (Winter 2017/2018) p. 1. •Travis Tomchuck, “Manitoba’s Mincome Experiment: Research into Guaranteed Annual Income, Poverty, and Human Rights, The Canadian Museum for Human Rights, (August 10, 2022).