Wednesday, July 19, 2006

Calgary - a victim of its own success?

Calgary has a new slogan: "Now hiring - all positions". It's very to find a store without said message displayed and almost impossible to find a restaurant in this city without it either. So what's the problem?

The problem is that Calgary is a very rich city right now. The economy is booming, housing starts continue to set country-leading records, corporations are flocking here like rats, construction proceeds at a pace that has truly created a massive labour shortage. But Alberta has one of the lowest minimum wage figures. There's your answer. It's almost impossible to work even a full-time minimum wage job in this city and be able to afford the cost of living. At $7.00/hr, working a 40 hour week, you'd make a little over $1100 a month - before taxes. The average rent in Calgary right now is $800-900 a month, so even if you shared a place, you won't get far. That's the price of success. Is it any wonder we have so many working poor that live in homeless shelters?

6 comments:

Anonymous said...

This must be how Chicago's and Vancouver's are created. I wouldn't doubt if a huge crime rate followed our stupid little economic boom.

Karl Plesz said...
This comment has been removed by a blog administrator.
Karl Plesz said...

Well, I don't see it as stupid. It's just that government needs to realize that when an economy booms, the gap between the haves and have-nots increases, unless said government takes measures to share the wealth a little. So for example, instead of giving all Albertans a cheque for $400, maybe they could have raised minimum wage by $1.00/hr.....

Ernest Pedersen said...

Survey of monthly parking rates released today. 1. Calgary $375/mo, 2. Toronto $300/mo, 3. Montreal $259/mo, 4. Ottawa $195/mo, 5. Vancouver $194/mo.

And in Toronto, companies have started a new way to hire people; "if you really want to work for us, give us 3 months of free labour and if we like you we'll keep you and start paying you then..." Well, you can see where that could go...

Ernest Pedersen said...

The other thing about the minimum wage is that, at this point very few places are hiring at that rate. McDonald's is now starting people at $9.50/hr, and places like SuperStore are hiring at $13.00/hr with a $1000 bonus after working 1000 hours (~6 months). Unfortunately, that means costs go up, at the KFC in Eaton's Centre, the Manager there told me his prices will go up 5% next week to offset the 22% increase in wages.

Karl Plesz said...

[Johnny Carson voice] I did not know that......