Study
May Offer Insights to Living Wage
Bloomington Pantagraph - June 2, 2005
By M.K. Guetersloh
BLOOMINGTON
-- A long-term study on the living-wage concept in Los Angeles
may offer a few insights into how it would affect Bloomington
if the City Council approves an ordinance that would set such
a minimum pay for city workers.
The
study, released today through the University of California
and the Los Angeles Alliance for a New Economy, surveyed 320
of the 10,000 workers affected by the city of Los Angeles'
living-wage ordinance passed in 1997.
Local
living wage advocate Don Carlson, from the Central Illinois
Organizing Project, said the study shows the living wage works
regardless of the community's size.
"Living
wage works on a social-building level, an economic-building
level, and it works to bring the community together,"
Carlson said.
A
living wage is defined as the hourly rate a single person
would have to earn in a 40-hour-a-week job to be able to afford
a single-bedroom apartment in the community.
For
Bloomington that rate is $8.58. The 2004-05 living wage for
Los Angeles is $10.03 an hour.
The
City Council defeated the ordinance 5-4 in a November vote.
Then-Mayor Judy Markowitz cast the tie-breaking vote.
However,
Mayor Steve Stockton said he generally supports the proposed
ordinance and is willing to work with the organizing project
to address his concerns.
Advocates
of the concept in Bloomington want an ordinance that would
apply to people who work for the city or city contractors.
It would not affect private businesses doing business within
city limits.
During
a telephone news conference Wednesday in Los Angeles announcing
the study, David Fairris said the results were surprising
in that they showed the majority of workers helped by the
living wage are low-income workers in the community. Only
4 percent of the workers were teenagers working summer or
after school jobs, Fairris said.
"These
wage increases went to genuinely poor and low-income workers,"
said Fairris, a professor of economics at the University of
California at Riverside and one of four authors of the study.
Another
conclusion from the study is the living wage raised Los Angeles
unemployment rate by about 1 percent. Fairris said employers
mostly absorbed increased labor costs, found areas within
the business operation to make up the extra cost or raised
the cost of the contracts with the city of Los Angeles.
The
study did not address the number of businesses that stopped
doing business with the city of Los Angeles because of the
higher wage rate.
In
Bloomington, the proposed ordinance would cover employees
at the U.S. Cellular Coliseum, such as ushers and ticket takers,
and contract employees for the city, including crossing guards
and janitors.
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