Low-Wage Workers and Low-Income Families: The Role of the Private Sector

1. Low-Wage Workers and Low-Income Families: The Role of the Private Sector Donna S. Lero, Ph.D. Jarislowsky Chair in Families and Work Centre for Families, Work and Well-Being University of Guelph Global Strategies: Improving the Labour Conditions of the Working Poor McGill Institute for Health and Social Policy November 16, 2007

2. Concerns, Caveats • Focusing on low wage workers excludes consideration of individuals who are self-employed, precariously employed, and individuals who are often invisible or excluded from basic labour standards and social protections • Low-wage workers are heterogeneous – responses must address different situations, different groups • A focus on low-wage workers (and their families) must be complemented by an analysis of conditions of low-wage work • Private sector responses must be complemented by comprehensive public policies and community support.

3. Who Are Low-Wage Workers? • Young people – students, young people in entry-level positions • Disproportionately women – why? • Individuals with less education (less than high school, or only a high school education)* • Recent immigrants, particularly visible minorities* • Individuals with health problems, work limitations • Less consistent work experience, job skills • Proportion in low-income families; mobility

4. Low Wage Work, Working Conditions • Full-time…. Part-time…. Casual and Insecure • More part-time, temporary, contracted out • May have shorter job tenure, unstable work patterns • Unpredictable hours, Nonstandard work hours * • More often • in private sector, • in small businesses • non-unionized • More often in low-wage sectors of the economy, occupations that are underpaid

5. Disadvantaged at Work 1 • May not qualify for public protections for workers • EI in the event of job loss • Job-protected Maternity or Parental Leave • Compassionate Care Leave • Insurance in the event of disability, illness, injury * • Family Responsibility Leave • May not be eligible for, or entitled to paid leave benefits, paid sick leave, vacation * • Unpaid leave is problematic and costly

6. Disadvantaged at Work 2 • Less likely to have access to non-wage benefits Source: Marshall, 2003

7. Job Quality and Supports for Work-Family Integration • Control over work hours, work schedule • Flexibility in scheduling • Opportunities for training, skill development • Health and safety concerns, physically demanding work • Child Care – costs, access, quality • Work-related expenses, logistical issues • Research on positive effects of flexibility and support re: job satisfaction, commitment for workers at all income levels • Access to education and training, benefits related to retention particularly among low-income workers (Bond & Galinsky, 2006)

8. 3 Models re: Employer Support • Proactive, strategic approach to enhance opportunities and performance for low-wage employees – individually or in partnership • Limited attention to low-wage workers – treat all employees similarly • May be unaware of needs or concerns • May be reluctant to take on major commitments or ambivalent about role and potential costs • Informal support may be provided to individual employees • Low-wage workers as expendable

9. Examples of Employer Supports and Initiatives • Flexible scheduling * • Free uniforms • On-site literacy programs, skill development programs • Scholarship programs • Discounts • Incentive and recognition programs • Support in accessing financial assistance, services* • Health and dental benefits (selective) ----------------------------------------------------------------------------- • Partnerships with community colleges, state agencies or intermediaries re: recruitment, hiring, training, promotion and career ladders; also case management on or off-site • Partnerships in community capacity building

10. Conclusions1 • Very limited Canadian research, best practices • Larger workplaces in urban areas could be leaders • Key challenge for small businesses, small non-profits …..creative opportunities • Private sector may not respond unless labour shortages push them, and/or incentives and resources support them • Public policy affects workers and workplaces • Systemic concerns about underpaid care work

11. Conclusions 2 • Improvements in income, benefits, working conditions a legitimate concern re: job performance and retention, but also health, parenting, inclusion • Improvements at work should be accompanied by a focus on development of human capital (education and skills training), recognition of credentials • Evidence of importance and value of asset building approaches • Other public policy issues – transportation, child care, housing, affordable and accessible PSE and adult training

12. References • Bond, J.T. & Galinsky, E. (2006). How Can Employers Increase the Productivity and Retention of Entry-level, Hourly Employees? New York: Families and Work Institute. • Holzer, H.J. & Martinson, K. (2005).Can We Improve Job Retention and Advancement among Low-Income Working Parents? Institute for Research on Poverty. Discussion Paper no. 1307-05. • Litchfield, L.C., Swanberg, J.C. & Sigworth, C.M. (2004). Increasing the Visibility of the Invisible Workforce: Model Programs and Policies for Hourly and Lower Wage Employees. Boston College Center for Work & Family. • Marshall, K. (2003). Benefits of the job. Perspectives on Labour and Income (Statistics Canada, Catalogue no. 75-001-XIE) 4, no. 5, 5-12. • Saunders, Ron. May 2005. Does a Rising Tide Lift All Boats? Low-paid Workers in Canada. Document No 4, Vulnerable Workers Series, Ottawa: Canadian Policy Research Network. • The Finance Project. (2005).Work Supports and Low-Wage Workers: The Promise of Employer Involvement. • Winston, P. (2007). Meeting Responsibilities at Work and Home: Public and Private Supports.Washington, DC: The Urban Institute.

13. For More Information and Additional References: Donna S. Lero Jarislowsky Chair in Families and Work Centre for Families, Work and Well-Being University of Guelph dlero@uoguelph.ca www.worklifecanada.ca