Vancouver’s living wage policy will not be a “punitive program” for its thousands of venders

City staff are confident that they’ll be able to enforce their new living wage policy for direct and contract employees.

However, Nick Kassam with the city’s procurement and supply chain admits that there currently isn't a plan in place to regularly audit contract employers and make sure they’re maintaining the wage policy.

“At this point we haven’t established a formal schedule,” Kassam told the Straight in a phone interview. He clarified that through the city’s legal department and modified documents like the procurement policy, “it clearly gives us the ability to engage with venders if an audit is necessary.”

The City of Vancouver announced earlier this month that it is now a certified living wage employer. The current rate of $20.62 per hour in wages and benefits is calculated by the Living Wage for Families Campaign, based on regional cost of living and the basic family needs of a two-parent household.

Most of the city’s workers already make an income that meets or exceeds this expectation, but the big winners of the policy change will be the city’s contracted employees, including janitorial, construction, security, and maintenance staff.

Kassam said that the implementation plan has been in place for a few months now, starting with clear communication to the city’s thousands of venders with mass mail-outs, and updates to the city’s procurement policy and website.

Kassam also said that there is clear signage posted on city property and worksites to ensure that contractors understand their obligations, and employees understand their rights. This signage will also include contact information for the city and the Living Wage for Families Campaign so people can report any violations (a requested visual for this signage was not available at the current time, as it is still being finalized).

In lieu of a formal auditing schedule for contract emploters, Kassam says auditing will instead happen on an as needs basis—for example, if the city were to receive a complaint that wage standards were not being met.

Kassam said this is based on a desire to work proactively with venders and keep the process positive for all parties involved.

“We’re not trying to make it a punitive program for our venders,” says Kassam.

Kassam says that there are a few hundred people who will see a wage increase, but the full list of contractors was compiled last year and is currently out of date. Kassam said this list will be updated by April or May next year when he delivers an annual report to city council, which will include more detailed information on the number of employees who are under the payroll of city contractors.

Deanna Ogle of the Living Wage for Families Campaign told the Straight that New Westminster has seen a high success rate when working with contractors since it implemented the living wage policy in 2011. The city found through independent audits and complaint based policy that there were few violations. If a violation was found, the contractor could reimburse the employee, or the contract could be cancelled—something Ogle said hasn’t happened in New Westminster.

“There is an incentive on the part of contractor to keep that contract,” says Ogle. “Municipalities are responsible for large contracts, so it’s in their best interest.”

Between January and April of this year, the City of Vancouver has signed contracts worth more than $16 million in bid committee decisions, and more than $5 million in public competitive bids–but contracts signed prior to May 1, 2017 are not impacted by the new living wage policy.

According to Ogle, the heavy lifting for the City of Vancouver to implement the living wage policy will fall to areas of purchasing, procurement, and supply chain. But Ogle said she’s confident in the city’s commitment to enforcement.

“I don’t say this about every employer, but they showed a genuine interest in the role a living wage policy would play in the lives of the workers impacted,” says Ogle. “I’m really confident that they’re going to fully implement the living wage policy.”

UBC Sauder School of Business professor emeritus Mark Thompson, whose research includes labour and management roles in public service, told the Straight that the issue at hand may not be whether the city will enforce the policy, but who is actually defined as a contractor under it.

“The problem will be shaking out the definition of what a contractor is,” said Thompson. “Someone will ask this question and it’ll have to be answered.”

But Thompson also predicts that the city will put in an effort to follow up with contractors.      

“As far as Vancouver goes, I don’t think it’s going to be hard to implement,” said Thompson.

“They’re going to be in the spotlight. There’s an election coming up, so if they’ve got their thinking caps on they’re going to be keeping track.”