02) BIG BUSINESS
BENEFITS FROM POVERTY WAGES
(The following
article is from the August 1-31, 2010 issue of People's Voice,
Canada's
leading communist
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By Stephen Von
Sychowski
On July 1,
the lowest minimum
wage in Canada fell even further behind when Newfoundland raised its
level to $10/hour. It has been almost nine years since British
Columbia's minimum wage was increased to $8/hour in 2001, at the same
time that the ageist "training wage" was instituted at $6/hour.
In late
June, young workers and
other volunteers from the BC Federation of Labour and the Employee
Action & Rights Network protested at a McDonald's restaurant in
East Vancouver.
"McDonald's
and other low-wage
employers in BC are real beneficiaries of the minimum wage freeze,"
said BC Fed president Jim Sinclair, in a media release sent out to mark
the demo. "McDonald's will pay as little as possible and our low
minimum wage means McDonald's workers in BC earn the lowest starting
wages anywhere in Canada."
McDonald's
highlights the way in
which huge corporations profit from BC's below-poverty level
wages.
While a part time worker starting at McDonald's in St. John's would be
paid $10.25 by law, in BC the same worker would be paid as little as
$6.75 and could legally be paid as little as $6. Contrary to the claims
of right wing economists and politicians to the effect that higher
wages automatically mean higher prices, the cost of eating at
McDonald's is the same in St. John's as in Vancouver. Meanwhile, a
minimum wage worker in BC would have to make $13.21/hour to have a
comparable standard of living to that of their Newfoundland
counterparts. In other words, big business in BC is simply pocketing
the "savings" from paying lower wages as higher profits.
The
McDonald's protest was far
from the only action against the Liberal government's wage freeze in
recent months. Both the BC Fed's $10 NOW campaign, and the Living Wage
campaign, have mobilized in different ways for increased wages. Many
activists on these campaigns have been young workers. Some of the most
exciting developments recently have been the adoption of a living wage
policy by municipalities including New Westminster, and the formation
of the Employee Action & Rights Network. EARN is educating
non-union workers about their rights and fighting to ensure that those
rights are respected at work.
The
situation of wages in BC,
and the living conditions of those who make those wages, may be dismal.
But it looks like Gordo and the Liberals could have a rocky couple of
pre-election years in store if these movements continue to grow, and to
build towards involving the masses of non-union workers who are most
directly affected by these issues into these excellent struggles that
organized labour has launched.