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Wagemark Foundation proposes international wage standard

Wagemark Foundation is hoping to close the gap between high and low income earners.

Wagemark Foundation is hoping to close the gap between high and low income earners.

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This month, a new organization called the Wagemark Foundation opened shop for the first time in Toronto, with a goal of reducing income inequality.

Corporations, non-profit and other organizations will sign on with Wagemark. They'll be certified as organizations that are working toward a better salary ratio between their highest and lowest paid employees. The target is 8:1. So, if the lowest paid employee is taking home $40,000, the highest earner will be paid no more that $320K. 

Wagemark's Executive Director Peter MacLeod says the foundation feels society would benefit by having a rule of thumb about what constitutes fair pay. The idea is based in the writings of Business Theorist Peter Drucker in the Wall Street Journal in the mid-'70s, and began, in part, as a response to the Occupy Movement that focused on the disparity between the so-called rich, and everyone else.

In some Fortune 500 companies, the current ratio of earnings between highest and lowest paid employees runs in the neighbourhood of 300:1.

Click 'Listen' to hear Peter MacLeod.

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