Living
Wage Data Needed
Albuquerque Journal (New Mexico) - June
12, 2005
A
study of how a living wage ordinance has affected workers
and businesses in Los Angeles gave a boost to proponents
of Santa Fe's living wage law recently.
In
broad terms, the study of 320 workers and 82 businesses
affected by Los Angeles' ordinance (which is more restrictive
than Santa Fe's) found that the law increased pay for
workers in about 10,000 jobs and improved health coverage
for approximately 2,000.
Most
of the workers affected were poor or low-income and
had been working for almost 20 years on average. Businesses
largely adjusted to the higher wage requirement without
having to lay off workers or eliminate jobs -- the study
found that employment reductions amounted to only 1
percent of all affected jobs.
Businesses
also benefited because they had lower employee turnover,
resulting in savings on training.
With
Santa Fe's living wage ordinance still the subject of
a court battle, proponents were rightly excited about
the study, since it seemed to show that hiking the minimum
wage above the federally mandated and long out-of-date
$5.15 might not have the dire economic consequences
opponents are claiming.
For
their part, however, opponents note one hugely important
distinction between the situation in Los Angeles and
circumstances here in Santa Fe: The L.A. law applies
only to city contractors -- mainly airport workers and
concessionaires -- and thus involves only a tiny portion
of a regional economy that is one of the largest in
the nation.
The
New Mexico Court of Appeals will hear oral arguments
about the legality of Santa Fe's living wage ordinance
later this month.
It's
likely to be many months before the court rules on the
case, and many more before an all-but-certain appeal
to the state Supreme Court finally resolves the issue.
In
that lengthy interim, the ordinance will likely remain
in force. That means that by the end of the year, there
should be plenty of economic data on record for a study
of our own.
Wisely,
the city already commissioned a comprehensive baseline
study of wages and related issues before the living
wage law took effect.
We'd
urge them to follow up with the second study at year's
end. Only such a follow-up can provide meaningful answers
to questions about the effects the ordinance has had
on the city's businesses and its workforce.
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