Living
Wage Costs Few Jobs at LAX
The Mandated Pay Scale for Businesses with
City Contracts Resulted In the Loss of Just 112 Positions, Study
Finds
Daily Breeze - June 3, 2005
By Ian Gregor
Thousands
of LAX airline service workers, janitors and restaurant staff
have seen their paychecks balloon under the city's "living
wage" law while predictions that businesses would adapt
to it by cutting jobs have not come true, according to a study
released Thursday.
The
four-year study by University of California economists found
that Los Angeles' living wage ordinance raised pay for nearly
10,000 jobs -- 60 percent of them at LAX, said David Fairris,
a professor of economics at UC Riverside and a study co-author.
At the same time, companies subjected to the law trimmed just
112 positions, the study found.
The
1997 law -- one of the first in the country -- requires that
employers with city contracts pay workers at least $10.03
an hour without health care or $8.78 with a $1.25 contribution
to health-care benefits. Workers also must receive at least
12 paid days and 10 unpaid days off a year.
Maria
Louisa Mosqueda used to earn $5.75 an hour until the law began
applying to her LAX security company, AirServ, in 2000. Immediately,
her pay shot up $2.50 an hour, making it easier for her family
to pay its bills and ultimately buy a home in Bell, said Mosqueda,
56.
Additionally,
she was able to take paid vacation to visit her sick father
in Mexico, Mosqueda said.
"The
living wage helped me to raise the standard of my life,"
said Mosqueda, whose company provides passenger assistance.
"But it was not enough."
Mosqueda
was referring to the fact that she and her family -- all American
citizens, she noted -- still do not have health insurance.
When her grown son, who also works for AirServ, recently underwent
an appendectomy at Martin Luther King Jr.-Drew Medical Center,
the family footed a substantial part of the bill, with the
county paying the remainder, she said.
"It's
a sad situation," she said.
Fairris,
the professor, agreed. The study found that the law did not
prompt any companies to begin offering health insurance to
their workers, although some used the $1.25 incentive to enhance
existing plans, he said.
"You've
got to provide more than the $1.25 offset, that's for sure,"
Fairris said.
The
study authors are scheduled to present their findings today
to the Los Angeles City Council, Fairris said.
|