Category Archives: Labour Force

Livable Income IN a Livable Economy (Part Two: the Impacts of AI)

Last November I published a blog on the Edmonton CDC website and more recently repeated that posting here on Anticipate. Reading it first is, I suggest, of value to fully engage this posting.

The title of this posting reflects my interest in getting language “right.”

Living Wage and Livable Income are not synonymous. The latter includes the former and ensures we are considering those who do not earn wages and rely on pensions and/or government income security programs.  A livable economy is one that benefits society as a whole, not just those at the top of the income scale.

One of the biggest threats to a livable economy and the chance for people to have a livable income is technology and in particular Artificial Intelligence.

Artificial Intelligence (AI) is reducing the need for human intelligence and interaction. Systems and processes are fast becoming less reliant on human presence and more dependent on technologies that eliminate human error and/or just make things cheaper to do.

There are those who suggest that the disruptions caused by technologies are dramatically improving:

  • health for people; witness how much longer people are living (in the Western world in particular);
  • learning and education;
  • how we network and communicate;
  • convenience as in “Siri, how do you spell, perpendicular?” while offering us more choice (e.g. Skip the Dishes or Uber instead of just taxis);
  • the quality of products and services by eliminating human error; and
  • the bottom line by reducing labour costs and increasing profits.

We could debate the points above, but let’s assume all of the above is markedly accurate. Perhaps these are primarily positive impact of AI and other technologies, but the question for me has to do with the yin and yang of technological advances and their disruptive nature.

Technology proponents will point to the job creation that techno-firms provide and suggest that those jobs will replace the jobs lost because of technology. Some will admit there will be a structural skills gap in the workforce for a generation or so, but that everything will even out in the long run.

Maybe this evening out will happen over time, but it is hard to imagine that technology firms will be leading the way to structural reform that benefits workers who are being replaced.

Overall, it appears that technology is about the overall reduction of human workers in the market place. Currently much of this displacement is focused on low-skilled jobs, but don’t fool yourself. How long will it take robots to take these jobs:

  • Insurance underwriters and claims adjusters
  • Bank tellers and representatives
  • Financial and marketing analysts
  • Researchers
  • Inventory managers
  • Farmers
  • Taxi drivers and truck drivers
  • Bookkeepers
  • Lawyers
  • Pharmacists
  • Manufacturing workers
  • and more

If you believe technology will benefit you economically, you might be right, but overall the evidence to date indicates things don’t look so rosy down the road. Consider the following US data, based on a report about the impact of digital technologies on productivity and job growth —  in the MIT Technology Review.

The chart is a bit difficult to read but basically until 2000, the gap between productivity and employment in the United States has been fairly consistent and representative of a connection between jobs and productivity.  Since 2000, productivity has increased while jobs have pretty much remained at 2000 levels. That might be great news for big business, but far less so for workers.

Not only has the job trend not kept up with productivity, we can see a longer trend of significant GDP growth in the United States while household income has remained relatively flat since 1990. This chart indicates more economic achievement for the economy that is not benefitting workers at a corresponding rate, which frankly is one key factor in the significant income inequality that exists in the United States. Continue reading Livable Income IN a Livable Economy (Part Two: the Impacts of AI)

Living Wage IN a Livable Economy

Originally posted in November 2018 on the Edmonton CDC Blog.

In Edmonton, approximately 140,000 workers are identified as low income earners (earning below $16.31 per hour), according to the Edmonton Social Planning Council (source, page 79). Four in five of these workers are over the age of 20 and 60% are women.

The Canadian Payroll Association’s annual survey of Canadian workers identifies that in any given year 45% to 50% of workers across our nation are living pay check to pay check and would face significant hardships, including the loss of their residence, if they went without their pay check for one or two pay periods.

These two sets of data are not indicative of an economy that is working for the majority of Canadians. While businesses may report continued increases in profits and gains for shareholders, this data questions those who laud our economy as strong, vibrant, and sustainable.

For more than a decade, communities across Canada have been setting a “living wage” for their community and advocating for employers to adopt the “living wage” as the minimum hourly wage that they pay their employees. Key players in the development of the fledgling living wage movement have included the Canadian Centre for Policy Alternatives, Tamarack Institute’s Vibrant Communities Canada, Vibrant Communities Calgary, Vibrant Abbotsford, the Living Wage for Families Campaign, and Living Wage Hamilton.

A “living wage” is different than the “minimum wage”. The minimum wage is legislated by governments, while a living wage is voluntary and based on what workers in a family must earn to pay for the “basic cost” of living in their community. The primary focus has been on identifying a living wage for two parents (both working full-time) who have one child in full time day care and one child in before and after-school care. Continue reading Living Wage IN a Livable Economy

LIVING POOR: KAREN’S STORY

Note:  In addition to writing about community change and penning commentary, I am a story teller. I write fiction and spoken word. This piece is a mix of fact and fiction, often called “faction.”

One of my small luxuries in life is having someone come to my house weekly and clean it. I tell myself I need this service because I am so busy, but truth is it’s a luxury for me. I can afford it and to be honest I have the time to take care of my own mess; I just hate doing it.

Karen is the one who takes care of this for me. She is 24 and nearly always cheerful. She does an excellent job and in good time as well.  She is a friend of a friend and when I heard she was interested in providing this service, I decided to give her a go. Continue reading LIVING POOR: KAREN’S STORY

Ending Precarious Employment – A Game-Changer Strategy

Precarious Employment is the jargon people like me use to describe the employment conditions and experiences of a growing number of workers in our country. Here is what that jargon means:

Precarious employment is in effect sub-standard employment that offers low wages that typically are not enough to live on, and that does not offer basic benefits like sick leave, vacation leave, or even unpaid bereavement leave. Health and dental benefits are too often absent as a benefit to low-wage workers.

In Ontario, according to the Wellesley Institute, one in three workers do not have health and dental benefits. And the lower your income the more likely you will not have these benefits. In fact, the Institute reports that only one in five persons making $10,000 or less receive health and dental benefits from their employer. As well, the Institute reports that it is not until workers are earning $60,000 per  year that the majority have employer provided health and dental benefits (90%). See this link from Benefits Canada’s website.

Such employment also lacks in any form of job security. Workers can be sent home on a slow day, laid off for seasonal reasons, or simply let go if they are seen to be a “problem.” By “problem” I mean when a worker has to stay home to take care of her child in a work environment where such leave is not allowed. It might be allowed on the books (unpaid sick leave) but not so in practice. Precarious employment can also include work situations where worker safety is ignored, side-stepped, and seen as an unnecessary drain on revenues.

Most employers are likely decent employers, but precarious employment is not rare. Living Wage Canada reports that one-quarter of workers are low-income, the highest rate in the world. Precarious employment is estimated to affect 50% of Ontario workers, according to the Fight for 15 and Fairness collaboration.

A livable income is a game-changer for people. Sufficient income means better access to health services, to good food, to accessing services for our children, for planning for the future, and participating in the economy. A good job offering sufficient income reduces mental health problems, helps reduce stress in family relationships and can avoid the embarrassment, not to mention lack of opportunity, that children face at school when their parents cannot afford the extra fees required for participation in a sport or other school activity. People who earn a livable income can turn their attention from survival to contributing to their community and the lives of those they love and care about.

Imagine if there were more groups, more community leaders, more businesses, more citizens focused on stopping precarious employment and increasing the number of jobs that compensate people fairly.

Systems would change, new and effective policies would surface, employers would treat workers with dignity and people’s human rights would be met.

For more information:

Fight for $15 and Fairness (Ontario)
Fight for $15 (British Columbia)
Fight for $15 (Nova Scotia)
Fight for $15 (United States)

 

Precarious Work

When an employer won’t allow a worker more than 25 hours a week but requires that worker to be available for work 7 days a week, people become little more than commodities on the open market of Precarious Employment.

Lately I have made an effort to talk with folks that work at places like Shopper’s Drug Mart, Home Depot, and Save-on Foods and none of the workers I have talked to get an eight hour shift. My partner’s son just landed a job at 30 hours per week, no benefits of any kind.

Efforts like the Living Wage movement are gaining traction but large corporations seem slower on the uptake than do small business owners. When will the incessant desire to keep wages low by major businesses end up hurting the economy on which these low wage employers depend? There is a tipping point somewhere down the road – for everyone. Continue reading Precarious Work