PARK’S PLACE-As you may have heard, on Labor Day, Mayor Eric Garcetti introduced his proposal to increase the minimum wage in LA to $13.25 by the year 2017 (increasing to $10.25 in 2015, $11.75 in 2016).
Seattle, San Francisco, Hawaii, Maryland and others have approved (for San Francisco, voters will decide in November) to increase their prospective minimum wages.
It’s hard to believe that the federal minimum wage has been $7.25 since July 2009. You can’t even fill up a gas tank with that. Through several bouts of economic downturn, the amount has stagnated.
As with other issues that the federal government has failed to address like the lack of affordable housing, regulating fracking, e-cigarettes, and energy drinks, etc., states and municipalities have taken the issue into their own hands in hopes of stimulating their economies and improving the quality of life for their residents.
It’s important to note that minimum wage isn’t the same as living wage, which is what you would have to make to live ‘comfortably’ and be able to pay for expenses such as ‘decent’ housing, child care, quality food, etc. If we were to take on living wage, we’d easily have to hit the $20-and-up mark.
It’s a complicated issue. Yes you want people to be able to afford food, a safe place to live, and enjoy themselves every now and then, but at the same time, you don’t want to scare businesses away, who already complain about California’s hostile environment.
The lower wage jobs that have been added to the economy have been attributed to hampering the state’s recovery. This, combined with a lack of the addition of mid-wage jobs has contributed to a sluggish economic climate here that many can’t shake off.
I’m in favor of having an across the board increase rather than one just focusing on one sector, like the $15 proposed wage for hotel workers so this proposal has that going for it.
However, I feel this proposal was introduced hastily- it’s apparent business owners felt they were left out of conversation. Eli Broad is a commendable businessman but he doesn’t necessarily represent the kind of ‘everyday’ small businessperson in the city.
It is also unclear if this proposal is approved by the Council how it will be impacted by the recently passed statewide minimum wage law or if the city's intention is the support the Mayor's proposal and the recently authored city ordinance that only impacts hotel workers.
In my district, we lost 40,000 jobs during redistricting. Even prior to that, the district was, and continues to be, the home of the lowest paid jobs and home to the highest unemployment rates in the city.
Should this proposal pass, businesses will do one of three things: they will raise the price of their products, they will lay off employees or they won’t hire new employees at all. Nothing in this proposal creates new jobs or put more employees on the payroll period. My district, and others in similar economic conditions will be hit with a double whammy: the few employees that are working will have to do what they can to survive.
What’s is ironic is that the Mayor held his minimum wage announcement at Martin Luther King, Jr. Park (in my district), part of the very community that has the highest unemployment rate in the city and was recently excluded from his Promise Zone deal in LA. I’m not surprised by much anymore…
The effects of a higher minimum wage on employers and employees is yet to be seen but speculation has it that the great divide between the haves and have nots will widen.
I’ll let you know when Council will hear the proposal.
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In other misguided legislation, the state got one step closer towards banning plastic bags at large and small grocery and convenience stores.
As I’ve stated numerous times, it wasn’t too long ago when paper bags were considered environmental kryptonite. Now it’s like we’re passing them out like plastic bags- except we tacked a 10 cent tag on them.
If Governor Brown has any common sense, he will veto SB 270. The plastic bag ban has clearly had a detrimental effect on lower income people in L.A. and I’m still waiting to hear what positive environmental effect the ban has had when red cups, 20-gallon plastic bags, AND paper bags are still being utilized.
(Bernard Parks is Los Angeles Councilman for the 8th Council District. He is also a former Los Angeles Police Chief. He can be reached at [email protected])-cw
CityWatch
Vol 12 Issue 73
Pub: Sep 9, 2014
