Description: Cyclesmith, a Halifax bike shop, has been paying all of its 31 full-time employees a “living wage” of at least $23.50 an hour. Andrew Feenstra, the owner of the business, implemented this policy in September 2021, and he has noted its positive impact on employees who no longer have to live paycheque to paycheque. The additional cost of about $250,000 per year is worth it according to Feenstra as it helps with recruitment and retention.
Date: November 24, 2022
1) Would a living wage help you in your studies, similar to the story of Kieran Sharpe of Cyclesmith?
2) What do you think are some of the benefits and costs of paying employees a living wage?
3) Chapter 2 of Wiley’s Managerial Accounting: Tools for Business Decision-Making discusses the concept of direct and indirect labour. If you were an accountant at Cyclesmith, how might you make a distinction between costs of direct labour and indirect labour?
Leave a Reply