The Canadian Federation of Independent Business (CFIB) is concerned that unions are pushing municipal candidates in upcoming B.C. elections to support a so-called “living wage” policy.
So far, the only Metro Vancouver municipal government to adopt such a policy is the City of New Westminster.
That policy would require the municipality to pay all of its workers at least $18.81 per hour. It would also require any company that does business with the municipality to also commit to pay staff at least $18.81 per hour.
“We’ve already had one municipality adopt this stupid policy. It would be awful to see any more go down this road,” Laura Jones, senior vice-president of research, economics and western Canada with the CFIB, told Business in Vancouver.
“Its hurtful for property-tax payers. It’s hurtful for small business. It’s one of those ideas that sound good on the surface but as soon as you start thinking about what it means, you realize that it’s really crazy.”
The policy would require the city to raise taxes to pay for higher labour costs and many small business owners would not be able to bid on city contracts, unless they raised their own workers’ wages.
Earlier this year, Vancity credit union adopted a living wage policy. (See “Vancity adopts living wage policy” – BIV Business Today; May 25.)
Jones does not mind that because, as a private business, Vancity’s customers are free to do their banking elsewhere if the financial institution is forced to raise fees to pay for higher wages.
Municipal residents, in contrast, would have a much higher transition cost if they chose to move in order to avoid paying higher taxes to pay for higher worker wages, she said.
Jones believes unions such as the B.C. Teachers Federation, the B.C. Government and Service Employees Union and the Canadian Union of Public Employees B.C. are lobbying candidates who are running for left-of-centre parties.
Glen Korstrom
Twitter: GlenKorstrom