LA
'Living Wage' Law Raised Pay for 10,000 Workers
Associated Press - June 2, 2005
By Alex Veiga
Some
10,000 janitors, airline service workers and other employees
of firms hired by the city are making more money, thanks to
an ordinance boosting minimum pay while causing a slight decline
in jobs, according to a new study.
The five-year joint study by researchers at the University
of California, Los Angeles; University of California, Riverside;
and Los Angeles Alliance for a New Economy tracked workers
and employers covered under LA's living wage ordinance, which
went into effect in 1997.
The
number of workers who saw their pay rise in LA because of
the ordinance was surpassed only by workers in New York and
San Francisco, researchers said Wednesday.
Some
60 percent of the jobs covered by boosted wage requirement
were at Los Angeles International or Ontario airports, researchers
said.
In
all, the number of workers who benefited amounted to roughly
2 percent of the low-wage work force in Los Angeles, said
David Fairris, a professor of economics at UC Riverside who
co-authored the study.
The
living wage law requires companies doing business with the
city to pay workers a wage above federal minimums. Currently,
employers who fall under its requirements must pay workers
either $10.03 per hour, or $8.78 per hour plus a $1.25 per
hour contribution to help pay for workers' health care benefits.
Federal
minimum wage is $5.15 per hour. California's minimum wage
is $6.75 per hour.
Critics
of such ordinances argue that they help few workers and cause
companies to hire fewer people, but the study found job losses
amounted to 1 percent.
Employers
also managed to recoup some of the cost of higher wages by
cutting some fringe benefits and overtime, hiring more trained
workers and benefiting from reductions in employee turnover
and absenteeism, researchers said.
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