The livable wage (or living wage) movement strives to provide pay that will allow workers to meet their basic needs. Originally the movement focused on companies receiving government funding, but now communities across the country are looking at livable wage models to determine what more employers can do to provide livable wages.
It's no surprise that the issue is of vital importance to co-op businesses. In addition to supporting the Fair Trade movement (which ensures that suppliers all over the world pay their workers fair compensation), Co-ops are fundamentally committed to social responsibility, equality, and self help in their own communities. In fact, one of the seven principles of cooperatives directs that co-ops work towards the sustainable development of their communities through policies approved by their members. So it makes sense that co-ops are active participants in the livable wage movement.
While minimum wage is often not enough to bring people out of poverty, a livable wage aims to provide them with the means to live a healthful life. To come up with that figure, livable wage models typically balance wages and benefits with living costs. The living costs side of the equation typically includes housing, food, health care, transportation, communication, recreation, personal care, savings, and taxes. The benefits include employer-paid health insurance, flexible savings accounts (and tax savings from these), employer-paid retirement plan contributions, staff discounts and parking subsidies, in addition to the base pay.
While livable wages are mathematically calculated, the pertinent figures aren't always straightforward or easy to access. How can a business determine the basic needs of individual workers and the costs of each of these needs? Should the housing be based on a single apartment dwelling or a double with shared occupancy? What figures should transportation be based on? What's a reasonable entertainment tally, and how much should be allowed for savings, so that workers aren't living solely from paycheck to paycheck? And -- of special concern to co-ops, who advocate quality food -- how much should be budgeted for food? For example, the USDA Low-Cost Food plan budget may provide enough food to live on, but not enough to purchase natural and organic foods. Even after a livable-wage figure is determined, the business must decide who will receive the wage (full-time workers, all workers, those who have worked for the company for a certain time period?). And even the best livable wage studies must be updated periodically to make sure that they continue to accurately reflect the actual economic conditions of the community.
Ironing out the details and staying on top the figures is worth the effort. Paying livable wages to workers benefits both the business and the community. Those who receive a workable wage no longer need to receive housing subsidies, medical aid, food stamps or welfare, which drain taxes. In fact, those making a living wage contribute to the tax base. And they purchase more goods and services, contributing to the community in a financially positive way. Not as easily measurable, but just as significant, is the psychological impact of making it possible for every working member of your business -- and ideally your community -- to make a living that actually allows him and her to live a good life.
Co-ops have worked together to create a template model for determining fair wages in each community. The first template was published in 2003 and revised in 2006 by the Cooperative Grocers' Information Network (CGIN). This model helps co-ops determine a living wage level for their particular areas.
To read more about Livable Wage, visit:
