Submission

Executive Summary

FEED NOVA SCOTIA is the central distribution centre for 150(+) food relief organizations across Nova Scotia. Over the last number of years people with jobs in need of food support has increased in Nova Scotia, as low-wage work does not sufficiently provide enough income. FEED NOVA SCOTIA recommends that the federal government cease the current practice of following provincial minimum wage guidelines because these wages are clearly inadequate. FEED NOVA SCOTIA recommends the federal government exercise leadership through enacting Living Wage policy that values work and contributes to the overall productivity of the country.

Introduction

FEED NOVA SCOTIA is the central distribution centre for 150(+) food banks, shelters, meal programs, and drop-in centres (its member agencies) throughout Nova Scotia¹. Our mission is to feed hungry people and ultimately eliminate chronic hunger and alleviate poverty in the province. On average FEED NOVA SCOTIA distributes 200,000 kg of food every month to its member agencies throughout the province. Through these organizations approximately 40,000 people receive food.

A sizable portion of the hunger population in Nova Scotia is employed. These would be people that participate in the labour force, draw an income and contribute to the economy, but are unable to earn sufficient income to buy enough food to adequately feed themselves and their families. The number of people in this situation has been increasing year after year.

This trend is not specific to Nova Scotia, as food banks in all provinces are reporting similar findings. According to the Canadian Association of Food Banks the working poor using food banks across the country has increased annually. In 2004, the working poor accounted for 13.3% of all people using food banks in Canada. After social assistance recipients, the working poor is the second largest group of people relying on food banks².

This brief specifically addresses Question #2 in the consultation document "Looking at Existing Federal Labour Standards: What works? What does not work?" It is FEED NOVA SCOTIA's position that the current federal practice of assigning a minimum wage according to provincial standards does not work for a large segment of vulnerable workers in Nova Scotia and the rest of Canada. The federal government, through the Labour Standards regulations, must take the lead and establish a living wage. Establishing a living wage ensures that those currently trapped in the low-wage economy are able to earn enough to live on. Plus Living Wage policy is a legislated statement from the government that enshrines the belief that work is valued.

A growing low-wage economy: Growing food bank lines

Growth in low-wage non-standard employment has become the norm throughout Canada. It should come as no surprise that Nova Scotia in particular is a province that exemplifies this trend as low wage part-time employment has increased significantly. It is unfortunate that the province has tied economic growth to this sector.

Low-wage employment is characterized by below subsistence level incomes with no benefits or access to training and development. These jobs are typically set at minimum wage or just slightly above. This type of employment is the reality for a large portion of people using food banks in Nova Scotia.

In 2003, approximately 19,300 Nova Scotians worked for minimum wage³. Another 71,700 people earned under $8.00/hour⁴, that's equivalent to roughly 20% of the province's labour force. As of April 1, 2006, minimum wage will rise to $7.15. While it should be acknowledged that this is a step forward, as it will help many through increased income, it is still inadequate as most minimum wage employment is part-time. In most cases the increase in minimum wage will be mitigated by a lack of hours to be worked, another characteristic of the volatile low-wage economy. However, should someone be able to secure full-time employment at minimum wage, their earnings would still fall below the levels of the Low Income Cut-Off (LICO). Since minimum wage workers are not earning enough, sacrifices are made and in most cases food budgets prove to be the most discretionary.

Incidences of working poor in Nova Scotia

People trapped in low-wage employment often sacrifice spending money for food so other essentials can be paid, e.g. electricity, child care, transportation etc. The incidence of working poor families has continually been increasing in Nova Scotia for the last number of years. In 2004, the working poor accounted for 12% of people going to food banks in Nova Scotia.

Food banks help but they are not the solution. Earning enough income through employment is a method to ensure that people have choice and the ability to purchase their own food. Ensuring the minimum wage is a living wage will balance the precarious nature of low-wage employment.

The principle of valued work: a Living Wage

It is true that not everyone earning minimum wage is supporting a family, or considered poor when measured against the LICO. In fact, as Sussman and Tabi note, the majority of people in Canada earning minimum wage are young, single and students⁵. In Nova Scotia the statistics are similar. However, it is FEED NOVA SCOTIA's position that a "needs based" approach should not be the primary consideration when creating acceptable wage floor policy. Making assumptions based on need can overlook an individual's circumstance and sends the message that low wage employment is acceptable if you happen to be young, have no dependants, or attend school. A young person or a student's work should be no less valued because they happen to be living at home and are not totally dependant on their wages to live. Who is to say that a family is not dependant on minimum wage earnings from a son or a daughter? This is the error of establishing minimum wage policy based on assumptions concerning "need" alone.

A better and vastly more just approach is to set policy valuing all work done by all individuals, regardless of living situation. This is the underlying principle driving Living Wage policy. A fair and just wage makes people feel valued. Establishing a living wage would accomplish this, as current minimum wage rates across the country do not reflect this value.

Leadership from the Federal Government: Setting a living wage

The question was asked what works and what does not work in the current framework for Federal Labour Standards. It is clear that if current minimum wage rates across the country are set at a level that does not provide enough income to live, and do not reflect the general value of working for a just and fair wage, then the federal practice of following provincial rates is in principle not working.

Instead of following, FEED NOVA SCOTIA encourages the federal government to take a leadership role in promoting living wages that benefit current low-wage workers. A living wage set at $10 per hour sends the message that work is respected and valued and supports the working poor currently trapped in the low-wage economy.

Endnotes

¹ FEED NOVA SCOTIA is also member of the Canadian Association of Food Banks

² Canadian Association of Food Banks, HungerCount 2004 (Oct 2004)

³ Jacobs, John. Canadian Centre for Policy Alternatives: Nova Scotia regional group, Time for a Real Raise: The Nova Scotia minimum Wage (May, 2005)

⁴ Ibid,. (May, 2005)

⁵ Perspectives on Labour and Income, Minimum Wage Workers. (Summer, 2004)