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Why is the Sally Ann Paying its Own Employees Poverty Wages?

Posted: 02/14/2012 4:37 pm

On January 6, some 60 workers at the Booth Centre, a Salvation Army-owned shelter in the city of Ottawa's Byward Market, walked off the job and began an ongoing strike for an end to poverty wages. The workers -- a group that includes cooks, housekeepers, maintenance workers, front line staff, case workers, and addictions counsellors -- had been trying to negotiate better pay since their last contract ran out in March 2011.

The Booth Centre provides services for some of the most vulnerable in Ottawa's downtown core and its operator, the Salvation Army of Canada, claims to be "the largest non-governmental direct provider of social services" in the country. Given this, the thousands upon thousands of Canadians who make donations every year to the Salvation Army would likely be surprised to learn that many employees at the Booth Centre earn a poverty wage.

Under the current hourly pay scale, cleaners and kitchens assistants at the Booth Centre start at $10.90 and top out at $11.31. Similarly, maintenance workers start at $12.22 and top out at $12.63. On an annual basis, these top hourly wages amount to between $23,500 and $26,300.

In its 2011 Dignity Project report, the Salvation Army in Canada asserts that "it is extremely difficult for a family of four to live on less than $40,000 per year in an urban area." True enough, yet it is difficult to see how the salaries the Salvation Army pays some of its own workers at the Booth Centre are in line with the organization's prescriptions.

Moreover, the above-mentioned Booth Centre wages are less than the ACORN Canada living wage for Ottawa, which is set at $13.50 per hour. According to ACORN, those earning less than this amount in the nation's capital may have to rely on food banks, subsidized housing, and other such social services.

The final offer from the Salvation Army -- namely, a $500 signing bonus and wage increases of two per cent, 2.5 per cent, and three per cent over the next three years, respectively -- was rejected by a strong majority. Striking workers say that the proposed raise is simply not enough to make ends meet.

Indeed, in dollar terms, a two per cent increase on an hourly pay of $11.31 means an additional 23 cents per hour. Over a regular work day, this barely adds up to an additional $1.80 before taxes, just enough to pay for a medium cup of coffee. Moreover, a two per cent increase does not account for the rapidly increasing cost of living. In November, for instance, Statistics Canada reported that the price of food in the country increased by some 4.3 per cent over the previous 12 months, a trend that is likely to continue.

In response to the workers' request for better wages, the Salvation Army of Canada has responded that it cannot afford to make a better offer, a dubious claim for a number of reasons. For one, workers at the Shepherds of Good Hope -- a neighbouring shelter located just 500 metres from the Booth centre --earn between $2 and $5 more per hour for comparable work. For example, at the Shepherds cleaners top out at $13.53 (versus, as mentioned, $11.31 at the Booth Centre) while maintenance workers top out at $17.38 (versus $12.63).

So why is it that the Shepherds of Good Hope is able to offer much higher wages than the Salvation Army? After all, both shelters receive the same transfers from the city and province -- amounting to $43 per client, per night -- to run their operations. Furthermore, the fact that the Shepherds of Good Hope is a relatively small, local organization, certainly unable to boast the financial prowess of the Salvation Army, is worth reviewing here.

According to its 2010-11 annual report, the Salvation Army in Canada reported assets of $1.5 billion and revenue of $539 million. This latter sum includes $204 million from government transfers, $12 million in profit from Thrift Store operations and $182 million in donations from Canadians. Meanwhile, the surplus for the year was pegged at over $35 million. Hardly a struggling charity.

Moreover, the Salvation Army in Canada's refusal to offer more money is particularly concerning when one considers the salaries of its top managers. Again, according to its last annual report, its top 39 managers earned an average salary of $131,625, with one executive earning $239,081.

 
 
 
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Jake Thomas
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01:57 PM on 02/16/2012
I think if the average person spent a week working for the Salvation Army they would be appalled at the lack of professional management and the disgraceful working conditions. I worked for the Salvation Army for almost a year and will never set foot in the store again nor support their work. I prefer to support another charity in my town. Behind their facade of "good deeds" they are a vulgar dirty place.
04:37 PM on 02/15/2012
Too bad the report does not include the fact that the Sally Ann offered binding arbitration before the strike was called and yet the union braintrust chose to send their guys/gals to the picket line instead of letting an impartial third party reach a fair settlement.
It's a sad state when the union would rather bash, demonize and belittle than settle.
12:17 PM on 02/15/2012
I guess the Salvation Army has to pay its workers poverty wages so that the managers at the top can laugh all the way to the bank.
11:50 PM on 02/14/2012
The Sally Ann has been there for the homeless, the addicts, the frightened, the mentally challenged and the mentally impaired. They help anyone who asks for help and give back to the community every dollar the community gives to it. They have helped people all over the world and they have been efficient and imaginative in using the money donated to them.
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08:41 PM on 02/14/2012
I was unemployed when I met a Salvation Army pastor who changed my life. After a short conversation he offered me a job at the Salvation Army. I was essentially underqualified, yet the personal nature of the interview and the accessability of the administrators made it easy for me to show them who I was, rather than just a name on a resume.

I was hired at four dollars an hour more than I had ever made in my life and one dollar an hour more than they were contractually required to pay me. It was explained that the organization valued me and wanted to invest in my future.

On nothing more than donations from a small congregation and community fundraising (NO government interference) I watched the Salvation Army feed thousands of hungry people each year. The Pastors worked without pay, the youth pastor was a volunteer, the community ministries team was staffed by volunteers.

Don't believe the Liberal media.
08:32 PM on 02/14/2012
The Salvation Army is known for its volunteers. You see volunteers behind the scenes at Salvation Army functions. I suspect it couldn't be rolling in money without its volunteers working for free.
08:31 PM on 02/14/2012
Mr Rousseau - your post regarding SA poverty wages is an interesting piece that I hope lots of people read. I would like to draw your attention to another SA issue that I'm currently involved in with a small group of concerned citizens. In London, ON, the Salvation Army runs Bethesda Centre - it's a very unique group home across all of South Western Ontario. It houses young teenaged women who are pregnant. I myself am a former resident and have benefitted greatly from the group home dynamic, consistant structure, heathy regular meals, and education (both scholarly and life skills). SA has generously operated this home since 1955. It was recently announced that lack of government funding is forcing them to close the Bethesda Centre. However, I do know from a source that Bethesda has been on the chopping block since at the very least Spring 2011 - there's been much speculation as to what the real reasons are for closing the home.

I think more media exposure may put the issue at the forefront and help the group I'm working with more easily understand what we can do to help. Perhaps you would be willing to write a similar post for HuffPo?

"Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, it is the only thing that ever has." Margaret Mead
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HUFFPOST SUPER USER
Bec DeCorbeau
Le langage de l'invisible est le silence
07:13 PM on 02/14/2012
A sad story really, but it's reality. Must be a reformist! ;o)
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Glass Cannon
Let every eye negotiate for itself.
05:53 PM on 02/14/2012
There are millions living within a similar wage bracket. That's why it takes two incomes in many cases to make ends meet. Although some sectors of the economy have solved that problem by importing "temporary foreign workers" so that employers don't have to offer a real living wage.

Unions worked for to equalize pay and benefits for workers and create a real middle class in the early 20th century. Maybe it's time to rejuvenate that movement for the early 21st century.

In any case good for writing on one situation. Large corporations may be a little more guilty on this front than a charity, but they are similar in their desire to cut costs at the expense of their staff.