Picturing the Basic Income Guarantee Working for People Living in the Northern Bruce

By Noreen Steinacher and Brian McHattie

We ended our last blog by asking the question how the BIG, the Basic Income Guarantee might play out on the Saugeen Bruce Peninsula given our seasonal economy, small population, and older demographic. What an important question. We know many people in the Northern Bruce have benefitted from receiving the CERB but this is an economic crisis. Should the door stay open after the crisis and for what compelling reasons?

The best information available to bring us closer to a local perspective is to check in with the 210 citizens in Hamilton, Brantford and Brant County who actually lived with a basic income guarantee in 2017 for up to 17 months of a 3-year program. Theirs was a story of hope, change and the reshaping of living standards documented by four McMaster University researchers. As a starting point, let’s be clear that 69% of those receiving the basic income in the pilot were employed (in low income or precarious work) and 31% unemployed. This finding is important.

  • The majority of those employed before the pilot reported working while they were receiving basic income. Many reported moving to higher paying and more secure jobs or returning to school.

So here we see evidence of people’s continued motivation to work and better their economic situation while receiving the basic income guarantee. This information may help to dispel worries that the BIG is a disincentive to work in an area like ours, which needs workers.

The other big finding was a huge reduction in stress and anxiety. How would this experience translate to seasonal workers in the Northern Bruce? The worry about reaching EI eligibility and trying to max out overtime hours to get extended EI coverage would be significantly reduced. Predictable income, even if low or in the form of benefits helps to reduce economic insecurity. Evaluations from the basic income pilot illustrate the connection between increased funds and decreased stress.

There were a whole host of health and social behaviors measured that also may reflect potential benefits from a basic income guarantee for those living in the Northern Bruce. These were measurable changes during the time people received the basic Income guarantee.

  • 43% decrease in alcohol consumption
  • 73% increase in physical activity
  • 67% decrease in food bank use
  • 85% increase in nutritious food
  • 48% increase in volunteering
  • 69% increase in time spent with family

Seeing this kind of positive change, and in a short time, is nothing short of amazing. Here we get a glimpse of people who are healthier and can contribute more to family and community life.  Any community would welcome this kind of change. You can read the whole research paper at https://labourstudies.mcmaster.ca/documents/southern-ontarios-basic-income-experience.pdf

Unfortunately the 3 year, three region pilot program in Ontario was cancelled by the Ontario Conservative government within months after being elected in 2018 with Minister Lisa McLeod saying, ‘it wasn’t working’. The McMaster Basic Income Guarantee findings were just published in March, 2020.

What else do we know about the income picture in the Northern Bruce? A few quick indicators for our area tell us the low-income prevalence, that’s poverty, is 14.2%; that’s higher than the Bruce average of 13.3% (Public Health Grey Bruce, 2015) and there were 545 low-income households in NBP at the 2016 census. But we are missing some vital information about our labour force. Just how many full time residents of the Northern Bruce are working long, hard hours in the summer season and then have to rely on EI as an income security measure for the rest of the year? These are the folks who are raising children, trying to keep our schools and child care centres thriving, paying housing and food costs and in many cases living an economic roller coaster. They are also trying to stay healthy and participate in community life. We need more information about our workforce for the community, business leaders and municipal government to better understand the economic options that might work differently for an important segment of our community. In our next ‘blog’ let’s consider what would be involved in challenging the status quo. The discussion continues.

SPARK Project Newsletter, Issue #5

SPARK – Seasonal Workers & Entrepreneurs Spark Ideas (for our Community)

As we follow the Spark project objectives, the Tobermory Spark Groups have transitioned to a next phase. From January to April, 2020, the intent of the small working groups made up of community volunteer participants, each with a facilitator, was to meet and focus on the first two steps in a design thinking process. The task was to identify creative ideas, small or more comprehensive, which might support seasonal workers and their families and entrepreneurs who are residents of Northern Bruce.

Three groups worked with a process that included Empathy and Need Finding and Idea Generation and Prototyping.  The COVID-19 crisis slowed the work but groups ended up with a good number of ideas ready for further development.

Here are some of the emerging ideas focused on seasonal workers who live here.

  1. Affordable Long Term Rental (LTR) Accommodation Inventory Development and Promotion
  2. Local Ride Share and App development
  3. E-Bike Affordable Leasing for work and recreation, with a future Social Enterprise or business
  4. Virtual Resource Exchange. This initiative began the strategy/testing stage during the ‘lock down’ so will need to be reassessed for future application.
  5. Building a Local ‘People’ Resource Inventory – extension of a Community Asset Map
  6. ‘Extending the Season’; an idea that keeps coming up! – Both an economic development approach and an earnings redistribution approach are of interest. Huge!

With our new project facilitator, Rachel McLay working 2 days a week, the next phase will be to finish the prototyping and move into Strategy and Testing. Here the project takes the ideas and their prototypes and strategizes next steps with the help of community input. For this phase we hope to generate more community interest, research each of the ideas and pull together local people with passion and know how who can make things happen. Not easy during this pandemic recovery time.

Other activities may include talking with our original project supporters and consultants; doing some quick idea ‘pitches’ on-line for feedback and an on-line survey for others in the seasonal workforce; negotiating possible partnerships for some ideas; finding the support and resources for others. This is a strengthening phase where good ideas emerge into plans. We will try to evaluate what is more feasible to work on in the recovery period and what might be left for a later time. We have until March 2021 to complete the funded part of the Spark project. Not all idea development needs to proceed at the same time or pace but it will be good to have prototypes and plans ready to go as opportunities arise; be “shovel ready”. We are counting on some of our community to feel resilient enough to get involved.

Did you know there is a Spark group working in Lion’s Head? The Spark Lion’s Head NpCoWork Group is addressing the question, “What’s Needed for Entrepreneurs to Thrive 12 months of the Year on NBP?” They have also identified a number of emerging ideas and are working on at least one initiative, the e-Market, that is in the testing phase on-line and evaluating how things go.

There continues to be opportunity for collaboration between Tobermory and Lion’s Head project work but the emphasis going forward is on the development of each initiative through research, strategizing and testing, growing the number of participants affiliated with each initiative.

The Spark project has received great support and practical ideas from the Bruce Grey Poverty Task Force and Tamarack Learning Institute. The Spark project has also adopted the use of an innovative on-line platform called ‘Slack’, which helps projects like Spark to communicate among members, share documents and research on each initiative and build expertise and learning. Using ‘Slack’ is also a work in progress, especially for volunteers. Thanks to everyone involved and to date we have had 23 people working on Spark.

Questions, comments or expressions of interest in joining the project can be directed to Rachel McLay at The Meeting Place Tobermory at 519-596-2313 or info@tobermorymeetingplace.com

Noreen Steinacher MSW RSW
Spark project coordinator at The Meeting Place Tobermory

Would a Basic Income Guarantee Improve Lives on the Saugeen Bruce Peninsula: Learning About BIG

By Noreen Steinacher and Brian McHattie

How would a Basic Income Guarantee affect your life? Given the changes that the Covid-19 emergency is bringing to our lives, it seems like a good time to reflect on how we live on the Peninsula. Folks talk about hoping to get back to normal. Others say ‘normal’ with significant poverty in Canada and Canada’s world-leading greenhouse gas emissions per capita means that the global pause caused by the pandemic provides an opportunity to envision a different ‘normal’. Here on the Saugeen Bruce Peninsula, we can ask: what new normal do we aspire to? One aspect of this is how folks make income.

Introduction of the Community Emergency Response Benefit (CERB) provides an opportunity to re-visit the concept of a Basic Income Guarantee (BIG), also referred to as a Guaranteed Annual Income.

Basic Income in Canada Today

Canada has had a few important ‘starts’ on getting to the BIG but our history leaves many looking for more inclusion. Currently, the most significant income guarantees are provided for seniors and children. Old Age Security is provided as a “demogrant”, meaning that almost all adults on reaching 65 can receive it. It is an amount of money provided regularly to individual seniors, regardless of family status, past or present work status or other income. In addition, the Guaranteed Income Supplement is provided to seniors with low income. Children’s benefits share similarities. Income guarantees for seniors and children work in tandem with an abundance of public services. As noted above, in response to the Covid-19 crisis, the federal government introduced the CERB, providing eligible Canadians with $2,000/month until September 2020 – while not all Canadians are eligible, it is a form of basic guaranteed income; a simple but short-term BIG.

Basic Income is Not Welfare

For working-age Canadians, overall there is little income security in the event of job loss, disability, divorce, prolonged illness and treatment, maternity, economic recession and other life events. For those in this age range, Canada’s “last resort” income floor is provided by welfare (“social assistance” programs such as ‘Ontario Works’) and it is very unlike a basic income concept. There is no universality, for there are different income floors for different categories of people in different parts of the country. There are many complex rules and conditions that do not apply to other people, often discouraging work effort and causing stress and poor health. In many cases welfare provides an income nowhere near to meeting basic needs. It is a throwback to an earlier time that is not suitable to life in a modern, affluent democracy. Welfare is not a basic income.

A New Reality

Ever increasing rates of technological change are creating a new reality in which automation is replacing human labour, making life better in many ways, but also taking away livelihoods. Employment is increasingly insecure, the economy is shedding jobs, and much socially valuable work continues to go unrewarded. Some people are doing very well while many Canadians are losing ground–in income and wealth as well as in control of time, the ability to raise families and other aspects of citizenship that have been dependent on stable employment. A basic income is key to creating a future that offers security and dignity for all while ensuring a fairer distribution of work, wealth, income and participation in society.

Basic Income: An Idea Whose Time Has Come

The advent of universal public health care changed Canadians’ lives profoundly: quality medical care provided on the basis of our health, not our bank accounts, makes Canada a more equal, affordable and healthy place to live. Universal social supports still do not cover other essential needs such as pharmaceuticals and child care. Other challenges such as affordable housing and affordable transportation need more attention. 

How would a BIG affect your life? Are you benefiting from the CERB right now? Our next article investigates how the BIG might play out on the Saugeen Bruce Peninsula given our seasonal economy, small population, and older demographic. Much of the information contained in this article comes from the Basic Income Canada Network – learn more at: basicincomecanada.org. We hope that you and your family are finding ways to cope and recover in the months ahead. Join in this discussion and look for the next article.

SPARK Project Newsletter, Issue #4

SPARK – Seasonal Workers & Entrepreneurs Spark Ideas (for our Community)

As we follow the Spark project objectives, the Tobermory Spark Groups have started to transition to a next phase. From January to April, 2020, the intent of the small working groups made up of community volunteer participants, each with a facilitator, was to meet and focus on the first two steps in a design thinking process. The task was to identify creative ideas, small or more comprehensive, which might support seasonal workers and their families who are residents of Northern Bruce.

Both groups worked with a process that included Empathy and Need Finding and Idea Generation and Prototyping. There was lots of back and forth discussion and some ideas caught hold more than others, which is exactly what was expected.  And then there was COVID-19 to work through, but the groups adjusted for the most part. It was hard not to jump early to try to operationalize before getting buy-in or lining up resources, but the groups ended up with a good number of ideas ready for further development.

Here are some of the emerging ideas.

1) Affordable Long Term Rental (LTR) Accommodation Inventory Development and Promotion

2) Local Ride Share and App development

3) E-Bike Affordable Leasing for work and recreation, with a future Social Enterprise or business

4) Virtual Resource Exchange. This initiative is already in the strategy/testing stage so will need people to keep the momentum going.

5) Building a Local ‘People’ Resource Inventory – extension of a Community Asset Map

6) ‘Extending the Season’; an idea that keeps coming up! – Both an economic development approach and an earnings redistribution approach are of interest.

We are now in “the murky middle” in community development speak.

The next phase will be to finish the prototyping exercises and move into Strategy and Testing. Here the project takes the ideas and their prototypes and strategizes next steps. For this phase we hope to form research groups to work on each idea with each group needing local people with passion and pragmatists who can make things happen.

This phase may involve taking the ideas out into the community for discussion on the important question of how to get community ownership. Other activities may include talking with our original project supporters and consultants; doing some quick idea ‘pitches’ on-line for feedback from others in the seasonal workforce; bringing in new people; negotiating possible partnerships for some ideas; finding the support and resources for others. This is a strengthening phase where good ideas emerge into plans. We will try to evaluate what is more feasible to work on during the COVID-19 isolation and recovery periods and what might be left for a later time. We have until March 2021 to complete the funded part of the Spark project. Not all idea development needs to proceed at the same time or pace but it will be good to have prototypes and plans ready to go as opportunities arise; or “shovel ready”.

Did you know there is a Spark group working in Lion’s Head? The Spark Lion’s Head NpCoWork Group is addressing the question, “What’s Needed for Entrepreneurs to Thrive 12 months of the Year on NBP?” They will continue to meet as a group as they started later in February. However, they have also identified a number of emerging ideas and are working on at least one initiative, the e-Market, that is in the research/strategy/testing phase bringing in new people and moving the idea ahead.

There continues to be opportunity for collaboration between Tobermory and Lion’s Head project work but the emphasis going forward is on the development of each initiative through research, strategizing and testing, growing the number of participants affiliated with each initiative.

The Spark project has recently consulted with the Bruce Grey Poverty Task Force and Tamarack Learning Institute receiving good contributing support. The Spark project has also adopted the use of an innovative on-line platform called ‘Slack’, which helps projects like Spark to communicate among members, share documents and research on each initiative and build expertise and learning. Using ‘Slack’ is also a work in progress, especially for volunteers.

Adjustments to this transition plan will be made as needed. Working in and through the COVID-19 time, we are learning the importance of ‘declaring our community essential’ and keeping it that way.

Thanks to everyone. To date we have had 23 people working on Spark.

Questions, comments or expressions of interest in joining the project can be directed to The Meeting Place Tobermory at 519-596-2313 or info@tobermorymeetingplace.com

or Noreen at 519-596-2003 or nsteinacher@amtelecom.net

Noreen Steinacher MSW RSW

Spark project coordinator at The Meeting Place Tobermory

SPARK Project Newsletter, Issue #3

SPARK – Seasonal Workers Spark Ideas (for our Community)

On January 11, 2020 the SPARK project orientation meeting convened under snowy skies and 13 participants started the Spark project off with great energy and thoughtful comments and ideas. We accomplished a lot. A few members were absent due to weather and winter.

Working Group 1 with Yvette as facilitator: Kim, Andrea, Hazel, Julie and Tyler: first meeting date is Thursday, January 23, 20120 10am – 12 noon at The Meeting Place.

Working Group 2 with Sharon as facilitator: Jen, Mandy, Gillian, Wendy; first meeting is Tuesday, January 28, 1-3pm at The Meeting Place.

Wishing everyone well as we start this process using the ICE framework: Innovation, Creativity and Entrepreneurship. Facilitators have all the project information covered on ICE and the beginning list generated on need identification for the seasonal workforce. Group facilitators are off and running, sharing meeting logistics and input going forward.

Groups have access to a set of resources and local ‘consultants’ for support in the areas of Business, Entrepreneurship, Health, Children & Family, Finances, Food Security, Transportation, Community Systems and Housing and this list will be updated as more local experts join the project. What great support!

Jennifer Cuffe and Noreen Steinacher are working behind the scenes at The Meeting Place to keep the lines of communication open between SPARK and the community and other related initiatives such as the Tobermory Housing Committee, Sustainable Tourism plan and Young Professionals discussion & working groups.

Questions? Call The Meeting Place Tobermory at 519-596-2313 or contact info@tobermorymeetingplace.com and leave your name, number and note of interest with Jennifer.

SPARK Project Newsletter, Issue #2

SPARK – Seasonal Workers Spark Ideas (for our Community)

The Meeting Place in Tobermory is moving ahead with a new 2-year project. SPARK is all about looking at the seasonal economy and ‘building social capital’ with your ideas (new resources, new relationships that work for workers). We are still looking for interested people to join the project, who self identify as seasonal workers and who are mostly living year round on the Northern Bruce. If you are curious and comfortable enough working in a small group with like-minded people we’ll fill you in on the rest. You’ve got the expertise. We are starting to pull people together in January 2020 – so mark the date Saturday afternoon, January 11, 1-3pm at The Meeting Place Tobermory. To start, it’s a 4-month commitment to meet once a month, Jan. – April. There will be a small payment provided to those participating in the project. Want to join? Questions? Call The Meeting Place Tobermory at 519-596-2313 or contact info@tobermorymeetingplace.com and leave your name, number and note of interest with Jennifer.

SPARK Project Newsletter, Issue #1

SPARK – Seasonal Workers Spark Ideas (for our Community)

The Meeting Place in Tobermory is starting a new 2-year project. SPARK is all about ‘building social capital’ with your ideas (new resources, new relationships). We are looking for interested people to join the project, who self identify as seasonal workers and who are living year round on the Northern Bruce. If you are curious and comfortable enough working in a small group with like-minded people we’ll fill you in on the rest. You’ve got the expertise. We are starting in December 2019 – so hold the date Saturday afternoon, December 14. To start, it’s a 5-month commitment to meet once a month Dec. – April. There will be a small payment provided to those participating in the project. Want to join? Questions? Call The Meeting Place Tobermory at 519-596-2313 or contact info@tobermorymeetingplace.com and leave your name, number and note of interest with Jennifer.

Stress Strategies – Think of it like a Personal Spring Cleaning Tool

Its spring and there seems to be a lot going on in Tobermory. What about for you? As a volunteer and Chair of The Meeting Place we’ve got a video in the works, Volunteer Fair and Seminar coming up and our annual fundraising concert in 6 weeks. Not to mention a bunch of worries and excitement about the future. Yikes! I feel a little stressed out. Coincidentally or maybe not, I received an invitation from my professional association to try something called Stress Strategies – an on-line tool. Its Canadian, credible, down to earth and free – I checked! Who wants a hidden bill when you are trying to reduce stress? This set in motion a series of questions that I have asked before. Is stress something the average person can really reduce or change its effect? Can you actually learn to reduce stress successfully if needed?

As a social worker I’ve always believed in people’s strengths to deal with adversity but I’ve never taken a close personal look at everyday stress.

I also thought about CIRC, the Community Information & Resource Coordination service at The Meeting Place. One of the things the Coordinator does is give information and support to people in stressful situations. Maybe this is a tool to add to the resources and face-to-face discussion. So I passed the link on to Jennifer, our Community Coordinator to see what she thinks. Now I’m a bit more curious.

I’m a person who generally thrives on a certain amount of stress; its gets me going, and when I do things the stress usually changes somehow. It’s kind of automatic and I don’t think about it much. But I decided to try out the Stress Strategies tool. I really did and I got a quick but good plan on changing a couple of key things I’m stressed about right now. I spent 10 minutes; I saved my plan on-line in my own account and did print out. I still love paper. The interactive site pulls up little resource boxes to add learning specific to your plan. You can change it up any time you want. The whole thing is pretty easy to use and there’s a little intro video, but be prepared to read a bit. In the 10 minutes I spent I came up with three additional messages to self. INVEST. FINISH IT. USE IT.

Here is what some others say about who StressStrategies.ca is intended for:

StressStrategies.ca is designed to provide individuals with information, self-selected strategies and skill development. StressStrategies.ca is designed to be mobile-friendly, free and easy to use. The online tool walks you through the process of identifying simple and actionable strategies to manage stressors that are having a negative impact on the quality of your life. From there, you are empowered to develop a personalized action plan with concrete, practical steps that will enable an individual to manage stress more effectively.

So if your interested or you think you should pay more attention to what’s stressing you, take look. I don’t think it can hurt. It’s spring. Now waiting for what Jen says. Maybe she will send out a comment.

A Penny for Your Thoughts… OR a Thousand Dollars for a Thousand Words?

My son uttered the words that made my heart race, my senses go numb, perspiration run down my face, and all I could do was stand there with my mouth open in complete shock… I was suddenly aware of the impending catastrophe headed straight towards my family. I always knew the day would come, but so soon? I always had good intentions of planning for the inevitable, but you know, things happen, life gets busy, and before you know it, the time has come. So I am standing there staring at him as he is still talking, not hearing a word since “Hey Mom, when I go to college…” all I can think about is how am I going to pay for this?!? I still have a few years before College D-Day, but starting research now never hurt anyone.

He will do all the work of getting into his dream school – researching the colleges, visiting campuses, getting good grades, putting together a polished application – but will still have to deal with one major obstacle: paying for college.

Paying for school is daunting enough when you have the financial support of your family. But for students whose parents can’t or won’t contribute to expenses, figuring out how to pay for college becomes a whole different challenge.

According to Statistics Canada, Canadian full-time students in undergraduate programs paid, on average, $6,373 in tuition fees for the 2016/2017 academic year, 2.8% higher than the 2015/2016 average ($6,201). This increase was smaller than the 3.2% rise in tuition fees recorded in 2015/2016.

Undergraduates in Newfoundland and Labrador ($2,759) continue to pay the lowest average tuition fees in Canada, while undergraduate students in Ontario ($8,114) paid the highest average tuition fees in 2016/2017. You can also expect an average of $800 in ancillary fees (student activity fees, athletic fees, health insurance, etc.) and $1,300 for books and supplies. We won’t even mention the living expenses….

So, unless I am willing to relocate to the East Coast to further his education, we have to find out how to help him pay for his future education in Ontario. Sure, there is OSAP, student loans, and many colleges offer their own financial assistance, but there is another way to get money, and YOU DON’T HAVE TO PAY IT BACK!

Which brings us to scholarships, Bursaries, and awards. Lets break it down…

Scholarship

A scholarship is a grant or payment made to support a student’s education, awarded on the basis of academic or other achievement. Academic transcripts are usually requested. Extracurricular activities such as athletics and community work may be also considered.

Bursary

A bursary is typically an award for a student with financial need. Bursaries may have academic requirements, but are generally focused on helping students who do not have the resources to pay for school on their own. Applications for bursaries will ask for an explanation of financial need. Extracurricular activities such as athletics and community work may also be considered to receive a bursary.

Award

This is a catch-all for any awards that don’t fit in the above categories, for example student most improved in sciences

Before we carry on, there are some myths about scholarships and awards that are worth dispelling…

MYTH FACT
You have to have top marks to apply for scholarships. While grades are important, many awards and scholarships are for more than just good grades.  Leadership, volunteer work and financial need are some other criteria that is considered when you apply.
You can only apply for awards and scholarships in you first year of study. You can apply throughout your education, from your first year to upcoming graduates. 
Scholarships are just for student coming out of high school. The majority of scholarships and awards are open to students of all walks of life.  You can apply as a recent high school grad, having already attended post secondary studies, or if you are a mature student returning to school.
Awards and scholarships are just for full time students. Post secondary studies can be a balancing act and other responsibilities make it difficult, if not impossible, to be a full time student. Many awards and scholarships are open to part-time students. 

So, now we know what they are, where do we find them? No problem, just Google it…yeah right! I Googled ” bursary scholarship award 2018 Ontario college” and got About 276,000 results. WOW! The internet bring so much information right to your finger tips, but getting results like that are daunting.

So, I spent some time, (many, many hours actually) and found that many of these sites all offer the same grants, but look closely or you might just miss the one that is perfect for you!

College Specific

Most colleges offer their own scholarships, awards and grants. So once accepted, check out your colleges website as it is a great place to start.

Government Scholarships and Awards

Click here to view the Government of Canada webpage and learn the eligibility details of merit-based scholarships for undergraduate, graduate and postdoctoral studies. DisabilityAwards.ca is your portal to awards and scholarships for students with disabilities studying at Canada’s colleges and universities. Scholarships Canada is worth looking into, you create a profile and it matches scholarships to you (no charges or fees)

Provincial Scholarships and Awards

Click here for Ministry of Ontario Student loans, grants, scholarships and bursaries to find money that can help you pay for a college, university or apprenticeship program after high school. At Ontariocolleges.ca there are many awards available through non-profit organizations, corporations and service clubs.

Local Scholarships and Bursaries

That’s right! Only students from Grey & Bruce Counties are eligible for these applications. Community Foundation Grey Bruce has developed an online catalogue of available awards for Grey Bruce students. More than 1000 scholarships, awards or bursaries exist to benefit local students, each of which is included in their website intended for local students and their advocates. Application forms come out early February and most deadlines are May 31st, but they do vary so be sure to check each application carefully. This site is currently listing 496 scholarships, bursaries & prizes available to students or residents from Grey Bruce worth $651,395!

Crisis adverted, mission accomplished and I am feeling relieved. The next time he utters those fateful words, I will be prepared for the conversation with this information. It will hopefully dispel his worries about his ability to afford future education, and more importantly empower him to do his own research as to what grants he will apply for. I know it will be daunting and overwhelming for him, and I will be there to encourage him with my favourite Dr. Seuss quote

“You have brains in your head.
You have feet in your shoes.
You can steer yourself any direction you choose.
You’re on your own.
And you know what you know.
And YOU are the one who’ll decide where to go.”

Time to move onto the next logical hurdle I will face. Did you know that if you Google “surviving empty nest syndrome” you get about 128,000 results?

Jennifer Cuffe

Is the Hike in Minimum Wage Good for Tobermory?

It’s a new year and I have all sorts of ideas and hopes going around in my head so why not get some clarity by sharing a few of these out there. Maybe because I’m interested or maybe its just coincidental; I’ve been reading about the rise in minimum wage; guaranteed income pilots, poverty reduction actions, truth and reconciliation; I’m talking about real policies and change that could help eliminate poverty in Canada.

All the while I’m thinking – what about Tobermory, my own community at the tip of the Bruce Peninsula? I know its winter and we are shut down so tightly we barely have a spot to get a coffee, let alone go out for breakfast and chat, but I’m curious, to start, about what the prevailing thinking is on the minimum wage hike? We have a lot of great small and mid sized businesses that hire a lot of residents, students and out of towners for the tourist season. Tobermory and area is one of the premier summer visitor destinations in Southern Ontario. There is no doubt that everyone works hard, but does everyone share enough in the prosperity? I don’t think we have any consensus on how to answer that question but I think we should.

I fired off a few quick e-mails this week. Kelly McAdam Marcotte is the Chair of the Tobermory & District Chamber of Commerce. She says, “ I haven’t yet got a real grasp on how the majority of Tobermory business owners feel about the minimum wage increase. I have heard a few comments both positive and negative as is to be expected. We have a chamber meeting coming up and it will certainly be brought up on the agenda for discussion as I’m sure other members have some input from the business community.” That’s a good start; discussion and sharing differing viewpoints in the community. The last thing we want is for employees, especially those who live here full time, who are supposed to benefit from these changes, to feel any backlash or the burden of progressive social policy because folks haven’t taken time to process change.

Think about it; a ‘living wage’ which is what it really takes to makes ends meet for a family in Bruce and Grey counties in 2017 was $19.11 an hour; that’s with one adult working full time 40 hours a week and supporting two kids (reference Bruce Grey Living Wage 2017, United Way Bruce Grey Poverty Task Force). Social Planning experts across Ontario calculate these figures for different family types every year using a Canadian Living Wage framework and that’s pretty skimpy; no pets, no more than one dinner out a month, no credit card debt, no alcohol, no smoking, no looking after an elder and a bunch of other things the rest of us spend money on every day. So the minimum wage of $14.00 an hour and $15.00 next year isn’t anywhere near a rural ‘living wage ‘.

The living wage research also identifies the benefits for employers, workers and communities. On the employer side, paying higher wages is said to reduce absenteeism, decrease turnover rates, lower recruitment and training costs, increase staff morale and loyalty, improve productivity and service delivery and improve profile in the community ie) brand recognition and consumer loyalty (reference Perth Huron Social Research & Planning Council 2015). Kelly Marcotte agrees with some of these points from her own business experience. These are powerful business factors but are generalized across many types of businesses. The reality is, in this transition some people will lose and some will gain, but most analysis points to more gain in the long run. Over a third of Ontario workers earn less than $15.00 an hour. That’s a lot of people that will benefit and be able to spend, possibly pay down debt or save a little more.

Closer to home, anecdotally, we know some local businesses are already paying employees well above the new minimum wage and others are worried and I empathize. I know a little bit about the business side of life in Tobermory having worked in several of these hardworking businesses for the past 10 years. But, I’m also for more open discussion about the facts, the costs and the benefits for everyone in moving forward with the new minimum wage. If any businesses would like to add to the discussion, Kelly invites you to send comments to the Chamber at chamber@tobermory.org and TMP would like to hear from anyone interested in this important topic.

To wrap up, I came across a stunning blog comment from Canadian community developer and author Paul Born, from Vibrant Communities, speaking in San Francisco in November, 2017. What he said was that “Canada is in the final stages of ending poverty. That the end of poverty is inevitable in Canada and I expect to see the end of economic poverty in my life time” and in his blog he says, “ I know you have either now burst into laughter at my statement or just written me off as a lunatic.” To see whether Paul is lunatic or skilled analyst go to https://www.tamarackcommunity.ca/latest/ending-poverty

I laughed but I also felt good and hopeful about some of the amazing things that have been occurring to reduce poverty in Canada, Ontario and the Bruce Peninsula in the past two years.

Noreen Steinacher is a full time resident of Tobermory and volunteer Chair of The Meeting Place Tobermory