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April 28, 2004

Health and the Working Poor

The working poor die sooner and have a higher incidence of virtually every disease compared to middle and upper income families. The Campbell government will turn more hospital workers into the working poor.

There is something profane about paying for high income tax cuts by reducing wages for cooks and cleaners to $10 an hour. At $10 an hour, under $20,000 per year, a worker needs to visit the food bank. Food banks report that a substantial number of their clients are the working poor. Campbell MLAs make $68,500 per year plus bonuses of as much as $9,000 per year for serving in various positions such as caucus chair or whip; cabinet ministers get an extra $39,000 on top of their MLA pay. Maybe they would have more empathy for the working poor if their perks and salary were closer to the people who elect them.

The Campbell government constantly complains about hospital cleaners and kitchen staff being paid more than their counterparts in other provinces and in the private sector. The contracting out that has already occurred shows that they are prepared to drive wages far below the national average for comparable work. It isn't a question of what constitutes a fair wage, but rather a question of how low can the wages be driven. The Health Employers' Association website shows that a cleaner makes $2,949 per month, $35,388 per year. The reason wages rose so that hospitals didn't depend on the working poor is because of years of low wage redress and pay equity. Part of having a healthy society is seeing that families have living wages. What happens to a family when its income is cut from $35,000 to less than $20,000? The Campbell government isn't talking about whether wages should be frozen, or even slightly reduced. It is using contracting out to replace decent union jobs with a system that depends on exploiting the working poor.

The Romanow Commission did not object to contracting out for various support services. It said:

"An increasing proportion of ancillary services provided in Canada's not-for-profit hospitals are now contracted out to for profit corporations. Canadians seem to find this role for private sector companies acceptable and some studies suggest that these enterprises achieve economies of scale (McFarlane and Prado 2002). Ancillary services are relatively easy to judge in terms of quality - the laundry is either clean or it is not, the cafeteria food is either good or it is not. Consequently, it is relatively easy to judge whether the company is providing the service as promised. Also, there is a greater likelihood that there are competitors in the same business to whom hospitals can turn for laundry or food services if their current contractor is unsatisfactory."

The struggle to maintain living wages should not be confused with a debate over private vs. public provision of what are usually publicly insured health services. The benefits of adequate wages shouldn't be limited to hospital workers. Thousands of workers in private companies could benefit from unionization. The Campbell government anticipated that with its initial union busting legislation. Bill 29 (2001) provides that "A provision in a collective agreement requiring an employer to consult with a trade union prior to contracting outside of the collective agreement for the provision of non-clinical services is void," and "A collective agreement does not bind, and section 35 of the Code does not apply to, a person who contracts with a health sector employer." Section 35 of the Labour Relations Code specifies successor rights and obligations. By eliminating that section of the Code for health sector employers, any attempt to organize a contracted cleaner, food service or laundry is easily defeated. Even that wasn't enough for some contractors who quickly entered into sweetheart deals with a local of the IWA that was willing to help contractors keep wages low; the contract between Aramark and IWA Local 1-3567 provides for wages of $10.25 per hour. That way the contractors don't have to break the union since for all practical purposes they own one.

Also see http://policyalternatives.ca/bc/pay-equity.pdf

 

 

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