May 24, 2006

Fresno Chamber Opposes Living Wage Proposals

The Greater Fresno Area Chamber of Commerce opposes the consideration of a living wage ordinance in the city of Fresno based on the fact the Chamber opposes mandated wages by the government, and the estimated impact it will have on the greater business community.
 

The Fresno Chamber believes:

 

- The 'living wage' requirement alone would result in substantial increases in employer costs. Not only would direct payroll costs be increased, but workers’ compensation, unemployment insurance, pensions and a multitude of other costs also would go up substantially.
 

- Imposing a living wage has the potential to severely limit competition and drive up California’s procurement costs.
 

- A living wage ordinance would affect both large and small businesses.
 

- California employers already face the most stringent and punitive labor laws in the country.

Background

 

Since 1994, roughly 120 entities—including municipalities, other government agencies, and some school districts and colleges—have adopted “living wage” ordinances. These ordinances, a direct outgrowth of the living wage movement that has spread throughout the country, set a minimum wage higher than the national or statewide figures so that low-wage workers and their families can meet their basic needs.

The living wage movement was set forth to recognize the inadequacy of the current national and statewide minimum wage levels as a basis for low-wage workers to meet the basic needs of their families through their work efforts.

A living wage ordinance is being proposed by the Community Alliance for a Fair Economy that would require anyone contracting with the city for $50,000 or more to pay employees at least $10 per hour and provide health insurance coverage or $11.50 an hour without benefits.

A living wage ordinance requires employers to pay wages that are above federal or state minimum wage levels. Only a specific set of workers are covered by living wage ordinances, usually those employed by businesses that have a contract with a city or county government or those who receive economic development subsidies from the locality. The rationale behind the ordinances is that city and county governments should not contract with or subsidize employers who pay poverty-level wages.
 

The living wage level is usually the wage a full-time worker would need to earn to support a family above federal poverty line, ranging from 100% to 130% of the poverty measurement. The wage rates specified by living wage ordinances range from a low of $6.25 in Milwaukee to a high of $12 in Santa Cruz.
 

In addition to setting wage levels, many ordinances also have provisions regarding benefits (such as health insurance and paid vacation), labor relations, and hiring practices.
 

Contact Kerri Ginis, the Chamber's Government Affairs Manager for more information at (559) 495-4818 or kginis@fresnochamber.com