WOMEN AND POVERTY:- An Inclusive Analysis for the Dialogue Sessions on Poverty Reduction in January 2009

WOMEN AND POVERTY:
An Inclusive Analysis
for Poverty Reduction

Suggested Directions
for the Dialogue Sessions of the
Provincial Dialogue on Poverty Reduction

(Winter 2009)

NB Coalition for Pay Coalition
coalitio@nb.sympatico.ca
www.equite-equity.com
506-855-0002

January 2009
WOMEN AND POVERTY:
An Inclusive Analysis for Poverty Reduction

INTRODUCTION

The provincial government has decided to organize a consultation process in order to develop a poverty reduction initiative. The consultation process, as it is planned, includes:
Face-to-face Dialogue Sessions throughout the province between January and May 2009. All women and men in New Brunswickers may register to take part.
In addition to these sessions, New Brunswickers can participate on line or send an email, a letter, a fax or a brief.
At the end of the Dialogue Sessions, a report will be produced and made available to New Brunswickers.
The final report on the consultations will be presented to women and men who take part in Phase II (Round Table Sessions taking place in winter 2009).

The NB Coalition for Pay Equity would like to invite you to take part in the Dialogue Sessions of the Provincial Dialogue on Poverty Reduction, which have been organized by the provincial government and will take place between January and March 2009. The Dialogue Sessions provide an excellent opportunity to encourage the government to adopt legislation for pay equity covering both the public and the private sectors, to use an inclusive analysis (that is…), and to consider the needs and perspectives of women in developing policies and programs.

Register in advance by phoning 1-888-315-6606. You'll find the schedule of Dialogue Sessions here: <http://www.gnb.ca/0017/promos/0001/dialogueSession-e.asp>

During the dialogue sessions, the facilitator will ask participants to discuss the following questions:
What is poverty?
What does poverty mean?
What can we do to reduce poverty?
The participants will be grouped together randomly for the purposes of "dialogue" rather than "debate". Each group will choose 3 major recommendations to share with the larger group.

In this document, we suggest a number of points to raise in your discussions. The following themes are addressed:
1.inclusive analysis,
2.pay equity,
3.minimum income (raising the minimum wage and social assistance benefits),
4.child care services,
5.the role of community organizations and the government,
6.the progressive tax system.

1. INCLUSIVE ANALYSIS
The reality of women's lives is different from that of men. To achieve true equality, we must consider those differences. More women than men live in poverty. Their average income is lower. Their needs are not the same. Similarly, the needs of Aboriginal people, visible minorities, and immigrant women and men are not always the same as those of the majority.

The government needs to adopt an inclusive analysis. It needs to evaluate the repercussions of policies, budgets, existing and proposed programs n women and on men, as gendered and as diverse groups

The objective of this analysis is to eliminate sources and symptoms of inequality between men and women.

Recommendation:
To adopt an inclusive analysis of the socio-economic situation and any policy proposed.


2. PAY EQUITY

In 2008, women in New Brunswick earned 85.9% of the hourly salary of men: $16.46 per hour compared to $19.16. Several factors contribute to the wage gap. Certainly, one of the significant factors is salary inequities.

An estimated 70% of New Brunswick women in the workforce work in jobs traditionally held by women or in which a majority of workers are women. Women make up the vast majority of health care workers, early childhood education workers and elderly workers. Offices and retail settings are other places where women traditionally work.

Unfortunately, a number of jobs generally held by women are underpaid compared to jobs of comparable value held by their male counterparts. This contributes to the wage gap between women and men in New Brunswick.

Pay equity would correct part of the gap in hourly salaries between men and women, would make it possible for numerous women to be freed from poverty, would increase women's tax contributions and would lead to a modernization of pay systems and practices among employers in the province.

The government announced that it will adopt a Pay Equity Act for the public sector, but many people are employeed in the private sector, and they are equally in need of pay equity legislation.

Recommendation:
To adopt a Pay Equity Act covering both the public and private sectors.


3. INCOME

In 2000, in New Brunswick, 82,850 women and 57,550 men aged 15 years or more were in categories in which the salary and benefits ranged from $2000 to $15,000 a year. This means a total of 38% of New Brunswickers lived below the poverty line.

New Brunswick has the lowest minimum wage of any province in Canada. Social assistance benefits are minimal. Having such low incomes makes it nearly impossible to have access to quality education, health services and child care, or to contribute to the province's economy, well-being and vitality. Moreover, such a large low-income population means additional short-term and long-term costs to the province.

Recommendations:
To adopt a minimum wage of $10. an hour by 2010, and to index it to the cost of living thereafter.
To increase social assistance benefits to reach the average rate of the other three Atlantic provinces.

4. CHILD CARE SERVICES

It is difficult to find affordable, high-quality child care services in New Brunswick. Young families would be much more likely to be employed in stable, well-paying jobs and to contribute to the economy if such services were available. The need for a good child care system is even more desperate for single-parent families. According to Statistics Canada in 2006, 29,150 women and 5,435 men in New Brunswick were heads of a single-family household. Another problem is the low salaries that continue to be paid to child care workers.

Incentives offered to companies that establish workplace child care services are not having any noticeable effect.

Recommendations :
That the government develop an early education and child care program that is comprehensive, accessible, and affordable
That it offer adequate and stable funding for this system, with measures of accountability included
That it offer child care workers wages and working conditions that correspond to their training and the value of the work they perform


5. ROLE OF COMMUNITY ORGANIZATIONS AND THE GOVERNMENT

The establishment of and management of programs and services to eliminate poverty are the government's responsibility.

The government has the means to ensure the universality, quality and confidentiality of services and programs it offers, and to obtain the necessary revenue to do so. Furthermore, the government is accountable to the people of the province.

Community organizations are there to help with temporary problems or offer additional services to complement those of the government. They should not and they cannot play the role that belongs to the government.

In addition, the government should not try to save money by downloading the management and delivery of these services to the community or the private sector. The proportion of women working in community organizations is high, and their salaries are much lower than in the public sector.

The history of literacy training in the province is a good example. Literacy teachers earned between $17.50 and $22.50 per hour when they were employed by community colleges. When literacy training was transferred to the community sector, in 1994, salaries plummeted, sometimes to less than $14.00 an hour.

Recommendations:
That the government continue to be responsible for the management and delivery of social programs.
That the government ensure adequate funding for social programs and services.
That the government provide adequate funding to community organizations, along with an obligation to offer fair and adequate compensation to their staff members.


6. PROGRESSIVE TAX SYSTEM

The government intends to adopt an flat rate of income tax, in order to reduce the taxes paid by large and medium-sized businesses as well as individuals who are better-off than the average New Brunswicker. This will have a significant impact on the government's ability to develop social policies and offer high-quality programs and services.

Since the bulk of the tax burden will fall on the shoulders of people earning less than $35,000 a year, women will also be more disadvantaged than men, especially in a context in which pay equity is not yet respected.

Last but not least, the gap between the salaries of the wealthiest and poorest citizens in our province is constantly widening. A tax system that imposes a flat rate of income tax can only increase this gap.

Recommendation:
To maintain a progress tax system for businesses as well as individuals, in order to offer women and men in New Brunswick high-quality, universal services in areas such as education, health, early childhood education and child care, a liveable income for all, and employment.