The Parkland Institute

Women and work

Recession highlights wage discrepancies in Alberta

More and more families are relying on women's lower wages to make ends meet

This summer, Alberta Finance Minister Iris Evans confirmed that the Government of Alberta is facing a deficit of $6.9 billion due to a drop in natural gas prices. However, the Minister didn’t illustrate how Alberta’s labour force has been affected by the recession. The picture isn’t pretty.

According to current Statistics Canada data purchased by Vibrant Communities Calgary, the recession is having a significant impact on the structure of employment in Alberta. One of the many changes is the significant job losses among male workers. Between August 2008 and June 2009, there has been a 12,800 net increase in employment of women over the age of 20, which is contrast to the overwhelming net loss of 29,000 men over the age of 20.

From an economic perspective, this is problematic because women earn less than men – not necessarily because they are women, but because women continue to be over represented in lower paying jobs. The average median hourly earnings during the first six-months of 2009 was $25.43 for men over the age of 20, versus $19.52 for women over the age of 20.

This means more and more families in Alberta are relying on women’s lower wages to make ends meet. This is a troubling economic trend as the cost of living has not significantly decreased. If this trend continues, we will all be feeling the repercussions, as more families seek support from the social service sector, while financially contributing less and less to re-stimulate our local economy.

Evans explained that the province will rely on its $17 billion sustainability fund to weather the economic storm facing the Government of Alberta. But solutions to our complex household and labour problems demand creative, comprehensive, innovative and long-term remedies that address the root causes, not just the symptoms.

We need to devote further attention to gender inequality. The fact that women tend to perform different kinds of labour does not justify the difference in wages. We need to consider why “women’s work” has been so devalued. Fortunately, upon closer examination, it’s clear that the market’s invisible hand does not solely determine wages; wages are also influenced by decision makers, including managers, government, and unions.

Unfortunately, low-wage female employees have very little, if any, negotiating power with mangers. Women are unable or unwilling to ask for higher wages or a raise out of fear that they will no longer be able to provide for themselves and their families. Unlike those at higher income brackets, female low-wage earners struggle to save and cannot afford to live on unemployment insurance that pays 55 per cent of their previous low income. Subsequently, low-wage female employees often desperately accept inadequate wages. In recognition of this power imbalance, managers must pay a wage sufficient to meet ones’ basic needs – a Living Wage.

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Furthermore, due to women’s childcare responsibilities, and the lack of accessible and affordable childcare in Alberta, women are often unable to enter into and progress within the workplace. Since women make less than their male colleagues across every industry and every age group in Alberta, they are usually the family income earner that sacrifices their career to take care of children. This leaves women with little or no employment history if they decide to re-enter the workplace after having children. We need to provide women with accessible and affordable childcare in Alberta so they do not get trapped in the cycle of low-wage employment.

By encouraging investment in sectors that require high levels of emotional labour, such as childcare, we begin to change the public perception of the value of emotional labour. Our society assumes that nurturing and caring comes naturally to women, and that the labour that goes into calming down an irate costumer or caring for someone else’s child isn’t as intensive or valuable as the labour that goes into driving a truck or operating heavy machinery. It is far more accurate to recognize that emotional labour involves years of academic and on-the-job training and should be more appropriately valued according to the contribution it provides to the economy and our communities.

Finally, the low-wage, female-dominated service sector does not have the same-history of unionization as the male-dominated, goods-producing sector. Consequently, employers do not have the same pressures to provide comparable wages and benefits. Many employees in the goods producing sector benefit from unions even if they do not work in a unionized workplace. The low wages in the female-dominated service sector can partially be explained by a lack of union organizing. Considering that the service sector is currently the fastest growing sector (and largely geographically bound, unlike the manufacturing sector), revaluing wage scales within this sector will benefit all Albertans.

Since women entered the paid labour force, they have been struggling to live on less than their male counterparts. Due to the gendered nature of this recession, an increasing number of families are relying on women’s wages, which could provide the catalyst to address gender inequality in this province. Our recipe for social change requires a wide range of ingredients and utensils. Without societal engagement, inspiration and action, our recipe will fail. 

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