New Yorkers, elected officials, academics, and business leaders came together at Emigrant Savings Bank on Tuesday to debate the Fair Wages for New Yorkers Bill. The bill would raise the current minimum wage in NYC from 7.45/hr to 10.00/hr with benefits and 11.50/hr without. This is only for projects that receive a million dollars or more in tax payer funded subsidies. Several business are exempt including any in the manufacturing industry, non-profits, affordable housing, construction, and small businesses with less the 5 million in revenue. Looking back at the last six years, this would only affect 6 or 7 projects a year.
What exactly is a Living Wage? It's main tenant is that wages should be based on the cost of living in the area, rather then a set minimum. Under and ideal living wage, a person working 40 hours a week is able to afford shelter, food, healthcare, and other basic necessities of life. Living wage laws ensure that companies receiving government subsidies pay a fair rate.
Opponents to the bill, such as NYC Mayor Michael Bloomberg argue that it will impede business and job growth. Investors will be scared off by a higher cost of doing business associated with increased labor costs. Furthermore, New York business owners in particular believe that the cost of doing business is high enough this city, so higher labor costs would only make in harder for them to survive. These higher costs will make many employers reluctant to hire new employees and subsequently slow job growth In addition, the higher labor costs will also be passed down to the consumer.
Proponents provide several equally valid arguments for the bill. If businesses are going to receive financial benefits that comes from tax payer money, they have a responsibility to make sure those jobs pay enough to support the workers' cost of living. Furthermore, an increase in wages will not hurt the profitability of businesses yet have immeasurable positive effects on the lives of their employees. An increase in a couple of dollars and hour would be "the difference between food on the table, new clothes for the children, much needed medication or an on-time rent payment," according the Borough President Diaz. Several cities similar to New York City, such as Los Angeles, San Francisco, and Pittsburgh, have successfully implemented much broader and stricter living wage laws without negative consequences to the business community. There are also positives for the businesses. Businesses with better wages have happier workers, less turnover, and higher productivity.
UC Berkley's Labor Center has been studying the effects of living wage laws since 1964. Using Wal-Mart as an example, they found that a living wage would have a significant impact on those living near or at poverty levels. A wage increase to 12/hr would mean an extra 1600 to 6500 dollars a year for each household member working at Wal-Mart. If Wal-Mart were to pass 100 percent of the wage increases onto consumers, that would mean a 1.1 percent price increase which comes out to about 46 cents per trip or 12.49 dollars a year.
As Bronx Borough President, Ruben Diaz Jr. noted in his testimony on the act, several concessions and compromises were made with New York City's bill. The length of the bill's mandate was reduced from 30 years to 10 years. The small business exemption was raised from 1 million to 5 million. The subsidy threshold was raised from 100,000 to 1 million. Record keeping requirements were reduced to 6 years, which is already required by NY State law.
The majority of New Yorkers are in favor of the bill. A poll by Baruch College showed that 78 percent of New Yorkers are in favor of the bill, while just 15 percent are not. This includes 83 percent of Democrats, 74 percent of independents, and 56 percent of Republicans.
So what's next for the bill. That depends very much on Speaker Christine Quinn. She decides if the bill will be brought to the floor for a vote. If she brings it to the floor it most likely will pass, as it seems that the majority of council members are behind the bill. As of now, noone is sure where she stands. Bloomberg is against the bill and the could factor heavily into her decision.
There are a few things you can do to show your support for this bill. The first is send and e-mail or call Speaker Quinn.
quinn@council.nyc.ny.us
212 564 7757
Just send the Speaker a quick e-mail letting her know that you support a living wage in NYC. Also be sure to include the borough you live in and let her know if you are a registered voter. She is running for mayor on 2013, so this should be very important to her. You can also join up with
Living Wage NYC. They provide a variety of educational and volunteer opportunities.
