Can Small Businesses Afford Pay Employees A Living Wage? Essay

1084 Words Feb 23rd, 2016 null Page
Summary of Article
The article “Can small businesses afford to pay employees a living wage? This bakery owner thinks so” determining whether businesses, specifically small businesses, can afford to pay a living wage to their employees. It is about distinguishing the difference between paying employees minimum wage and living wage. This article details the story of one small business owner, Josie Rudderham, who is the co-owner of the Cake and Loaf bakery, located in Hamilton. “Josie Rudderham can’t live on $11.25 an hour and she doesn’t think her bakery staff should have to, either” (Tchir, 2016). Thus, in October 2015, “the bakery increased wages for their 17 staff members to $15 to $18 an hour from $12 to $15” (Tchir, 2016). The business took this decision when “the two ‘felt [they] were financially ready’” (Tchir, 2016). The business decided to take this crucial step after learning that the living wage for Hamilton was $14.95 an hour. The living wage, “the calculation, made every two years, includes groceries, rent, a transit pass, child care and extended health insurance for a family of four when both parents are working and making that wage. It doesn’t include saving for retirement, paying off debt, taking vacations or buying a home.” (Tchir, 2016). This calculation varies with every city. For example, a metropolitan area like Toronto has a living wage of $18.52 an hour. Ms. Rudderham “who hopes to eventually pay staffers $20 an hour, said giving workers more is…

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