Workers contracted by the City of Vancouver are likely to see a bump in their paycheques in the next few years as the municipality took the first step Monday toward becoming a “living wage” employer.

A motion Mayor Gregor Robertson plans to introduce at council this week would open the door to anyone working for the city, either as a staff member or contractor, earning at least $20.68 per hour, including benefits. This is the amount researchers at the Canadian Centre for Policy Alternatives calculate a Metro Vancouver family of two working adults and two children needs to cover basic expenses such as food, clothing, shelter and regional transportation.

However, that figure will likely go up by the time Vancouver becomes a living-wage employer.

Robertson’s motion asks staff to report back on the most practical way to achieve certification as a living-wage employer by the Living Wage Campaign, a Vancouver-based coalition.

The city has about 6,000 full-time employees, but the vast majority are unionized and already earning more than $20.68 an hour, said Coun. Geoff Meggs.

“Our goal here is to focus on those employees and contract employees who are in the largest numbers and tend to be in the most difficult position with this regard,” he said, adding that contracted employees performing services such as serving or delivering food, cleaning and groundskeeping are the most likely to benefit.

“CUPE has been supportive of this initiative, even though it will impact primarily non-union employees or contractors.”

New Westminster became the first municipality in Canada to be certified as a living wage employer in 2011. Mayor Jonathan Coté said it cost the city about $200,000, but that this represents a small proportion of the overall budget.

“I think it certainly helped the city to be known as an attractive employer and to be known as a progressive city,” Coté said. “I think there’s a bit of a misconception that it’s only young students (who earn less than a living wage). A lot of these times we’re talking about working families that are in these positions. To be able to say anyone who’s working for the city is also going to be able to live in the city I think is an important thing ... to be able to say.”

However, not everyone likes the idea. In a 2014 analysis, Fraser Institute researchers Charles Lammam and Hugh MacIntyre argued such policies hurt the very people they are trying to help. They cited research from the U.S., where more than 140 municipalities have passed a living wage law, showing that going from an hourly minimum wage of $10 to $20 per hour reduces employment for low-wage workers by 12 to 17 per cent.

“When governments mandate a wage above the prevailing market rate, employers respond by cutting back on jobs, hours, and on-the-job training. Less skilled workers — those with fewer qualifications and experience — end up as collateral damage in the process,” they wrote. There is also the potential for municipal tax hikes to cover the higher cost of labour, Lammam and MacIntyre argued.