Labor

Will Louisville Be Next to Raise the Minimum Wage? (Updated)

UPDATE (December 19): Louisville just became the first southern city to raise the minimum wage from $7.25 to $9 an hour. The increase will take effect by 2017. Louisville is the 12th U.S. city to raise the minimum wage this year.  Congratulations to Councilwoman Attica Scott, Kentucky Jobs with Justice, and the many allies who have worked on this issue.

Linda lives at a local shelter with two children. She works full-time in the health care industry and earns $8 per hour, resulting in a yearly income of $16,640 before taxes. Even in the unlikely event Linda were to find an apartment for less than $600 per month with cheap utilities, she would still have only $200 left for all of her other monthly bills, including food, clothing, transportation, child care, and health care. Finding an apartment she can afford also might mean living in a neighborhood where it is difficult to get to work.

Linda’s story of struggling from paycheck-to-paycheck is one that we hear far too often in Louisville and across the nation. Unfortunately, Congress and our state legislature have both failed to raise the current $7.25 an hour minimum wage. Now, low-wage workers in Louisville have placed their hope in the hands of the Louisville Metro Council and Mayor Greg Fisher.

The current proposal supported by workers and advocates would gradually increase Louisville’s minimum wage over three years to $10.10. This is only a start, since it is significantly less than the $11.48 living wage that former Mayor Jerry Abramson called for during his tenure. Moreover, the average monthly rent in Louisville is $694 and families will need to earn $13 per hour in order to afford housing and other household expenditures.  Like Linda, more than half of the adults living in Louisville homeless shelters are employed, some working full-time.

With more than 18 percent of Louisvillians now living below the poverty line of $18,552 annually for a family of three, we must do what we can locally to raise the minimum wage so it is no longer a poverty wage. An estimated 22 percent of low-wage workers in Louisville would benefit from a minimum wage increase, including 62,500 workers who make less than $10.10, and another 24,800 workers who would indirectly benefit once wage scales were adjusted upward.

And while the opposition would have us believe that undeserving teenagers working in the fast food industry will primarily benefit from an increased minimum wage, the fact is that among affected workers the average age is 35 years old; more than one-third are at least 40 years old; and most of the workers are women.  I hear the opposition clearly when they say that there may be minimal job loss, or that raising the minimum wage will not end poverty; and I understand that some businesses may have to increase their prices.

But the cost of goods and services is already increasing every year without the benefit of a minimum wage increase. And while raising the minimum wage will not end poverty, it will indeed help move some people out of poverty, and others who are on the cusp of poverty will no longer need assistance.

In order to help businesses adapt to increased wages, sponsors of the Louisville minimum wage legislation intentionally designed it to increase gradually over three years. We are committed to supporting businesses and we have proven that repeatedly by providing economic development incentives. During the last decade, we have used tax dollars to give tax breaks to the Yum Center, General Electric, Kentucky Kingdom, Colonial Gardens, and Cordish Companies, just to name a few beneficiaries. Now we are asking businesses to invest in their workers.  I know that there are areas of agreement that should be our focus: reducing income inequality, creating job stability, establishing fair wages, promoting compassion, and reducing poverty. We can get there and raising the minimum wage is a good start.

As the Labor and Economic Development Committee of the Louisville Metro Council prepares to vote on the minimum wage ordinance on December 4, I hope that we keep in mind that we simply cannot afford the price of poverty and we cannot afford to ignore working families. We can and we should raise the wage in Louisville.

Labor

65 Hours a Week and No Benefits

Yesterday, the Center for American Progress Action Fund hosted an event marking the release of Half in Ten’s annual report, “Building Local Momentum for National Change.” Virgil Pack, a restaurant worker from Richmond, Virginia, offered these remarks.

Good morning, my name is Virgil Pack, I’m 45-years-old and I live in Richmond, Virginia. I’m a father of two kids—a daughter and a son. My daughter’s name is Ashleigh, she’s 21 and attending UDC in her junior year. My son’s name is Sean, he’s 13 and lives in Albany, NY.

I have worked in the restaurant industry for most of my life. I have three jobs and work about 65 hours a week but every month is a struggle to make ends meet. I’m a crew trainer for Wendy’s where I make $7.75 an hour; I’m a shift manager at Sonic’s Drive-In where I make $11.00 an hour and unfortunately they’re cutting my hours; and for my third job, I’m a crewmember at Moe’s Southwest Grill where I make $7.75 an hour.

This means that at the end of each month, I have $915 to pay for rent, utilities, and more. I pay child support for my son, Sean, which is payroll deducted from Wendy’s.  I also help my daughter Ashleigh with college.  I have absolutely no benefits at any of my jobs—no health insurance, no paid sick leave.  I have 2 years of college under my belt and I used to run my own business, but in this economy, this is the only work I can find. God forbid I get seriously ill or injured, I’d probably be homeless.

Like the federal minimum wage, Virginia’s minimum wage is still $7.25 an hour, which you can see is just simply not a livable wage. And to make low and inadequate wages even worse, the lack of benefits makes it that much harder to get by: without paid sick days or paid leave, I’m forced to choose between going to work sick or losing needed income to support my family, or possibly even losing my job, and if there’s a family emergency I have to choose between the same impossible choices.

However, I am excited to say that I have an appointment with a navigator on Thursday of this week to enroll in a health insurance plan under the Affordable Care Act. The idea that I will shortly have health insurance is such a huge weight off my shoulders and an absolute blessing for me and my family.  However, it’s only one piece of the puzzle. Without higher wages and better quality jobs, I’ll still be running in place.

In Virginia, raising the wage would affect over 744,000 workers, which is more than 20 percent of the workforceAnd many people like me, work so hard, yet with wages so low and no paid leave or other benefits, we’re stuck or falling behind. Not only would raising the wage enable families like mine to put more food on the table and know that we can pay rent each month, it would make us feel appreciated and respected as workers.

I would like to take the time to say that I’m not up here for sympathy but I would like for people to see that there are Americans trying to live right and would like a fair chance at the American dream, which to me is family and prosperity….

Thank you, thank you, thank you for this opportunity.

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Media and Politics

After the Election: Organize, Mobilize, Agitate…then Vote.

Editor’s Note: On the weekend following the election, the Half in Ten campaign co-hosted a poverty summit in Miami, Florida with Catalyst Miami, a non-profit organization dedicated to building a community and economy that benefit all of the state’s residents.  More than 200 political and civic leaders, advocates, and community residents discussed a range of issues and strategies to address them, including: Medicaid expansion, immigration reform, criminal justice, housing and transportation, wages and opportunity, education, and media coverage of poverty. 

Florida State Senator Dwight Bullard closed the summit with the following remarks.

I lead the Florida Democratic Party so on Wednesday I was pretty spent emotionally and physically.  But this anti-poverty summit we had just around the corner made me psyched.  It served as a reminder: “Time to get up off your butt.  We got work to do.”

We’ve got to organize, and we’ve got to change hearts and minds.

And we have a message that we can’t forget and have to keep pushing: People are suffering.  People are suffering.  People are suffering.  Not only in Miami, Florida, but nationwide—and we must serve as a catalyst for change.

There is a lot of money, and a lot of egos, trying to deafen this message.  And we need to stop waiting on ‘go betweens’ to deliver our message for us.

You don’t need people to be your voice—you are the voice

You all are the halls of power.  You don’t need people to be your voice—you are the voice.  You need to be active—at city hall, at the state capitol, and in Washington, DC.

People will see in you a chance to change the world we live in.  They will see the ability to be their own Gandhi, their own Dr. King, their own catalyst for change.

There’s only one way to change income inequality in this country: organize, mobilize, agitate and disrupt the current flow of B.S. from Tallahassee to D.C.

Your job is to hold the policymakers fully accountable.  And that doesn’t begin at the ballot box.  It needs to be a constant barrage that says, ‘If you are not the change agent I need, you are dismissed.’

And we need to believe in the power of the vote.  Scotland recently voted on whether to separate from Great Britain—89 percent of the voting population participated.

That’s called democracy.

Denmark—on a regular basis—has no less than 86 percent voter participation.  That’s why they have a $22 an hour minimum wage.  Unionized labor.  Universal healthcare.  Paid college tuition.  How?  It begins and ends with 86 percent participation every election.

When you average about 40 percent participation like we do in the United States—you get what you deserve.

So organize, mobilize, agitate—be the change agent you need to be.

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Safety Net

‘Poor Gays’

“Poor gays!”

No, that’s not a statement of sympathy for a discriminated minority – but rather a subsection of that minority which gets little notice. The intersection of LGBT people and poverty is a largely overlooked reality.

Cameron and Mitchell, Modern Family’s much beloved gay couple, live in a lovely home and not only have the resources to adopt an Asian child, but the time to dote on her. Neil Patrick Harris and his husband in real life, David Burtka, have two adorable twins, and presumably the resources to hire nannies to watch the children while they pursue their careers. Judging from gay couples in the media, one might be tempted into believing that LGBT people are all thriving and reasonably affluent — not to mention overwhelmingly male and white. Nothing could be further from the truth.

An extraordinary report, New Patterns of Poverty in the Lesbian, Gay, and Bisexual Community, by M.V. Lee Badgett, Laura Durso and Alyssa Schneebaum from the Williams Institute (UCLA School of Law), presents a much more complete and accurate view of lesbian, gay and bisexual (LGB) people and families than the one that resides in most people’s minds.

The authors note that in reality same-sex couples are more vulnerable to poverty than married couples who are different-sex. Children of same-sex couples fare even worse—they are almost twice as likely to be poor than their peers in different-sex couple households. The most vulnerable of all are African-American children in gay male households—they have a poverty rate of more than 52 percent—higher than any children in any other household type. Children living with lesbian couples are also struggling with a poverty rate of nearly 38 percent—this compared to a national child poverty rate of approximately 20 percent (also atrocious).

The report authors point to some of the reasons so many LGB families are living on the brink, including, “susceptibility to employment discrimination, higher rates of being uninsured and a lack of access to various tax and other financial benefits via exclusion from the right to marry.”

The numbers of LGB parents raising children (biological, adopted and step-children) is not small—and they are not mostly from coastal metropolitan centers no matter what pop culture and the media might lead you to believe. In fact, the states with the largest concentrations of LGB couples raising children—between 22-26 percent of all LGB couples in these states—are Mississippi, Wyoming, Alaska, Idaho and Montana.

It is time we recognize how the interlocking oppressions of race and gender affect our LGBT community

Yet most of these states do not currently have marriage equality and its attendant benefits for married couples and their children. In every state except for Florida, Maine and the District of Columbia, between 15-22 percent of LGB couples are raising children. So this is clearly not just an urban phenomenon. Indeed, as reported in the New York Times, “the data show, child rearing among same-sex couples is more common in the South than in any other region of the country… Gay couples in Southern states like Arkansas, Louisiana, Mississippi and Texas are more likely to be raising children than their counterparts on the West Coast, in New York and in New England.”

It is very difficult to separate the effects of being LGBT and poor from the additional factors of race and gender. All of these factors come together in a perfect storm which increases the likelihood of poverty among LGBT families raising children.

In Race/Ethnicity, Gender and Socioeconomic Wellbeing of Individuals in Same-sex Couples, report co-authors Bianca Wilson and Angeliki Kastanis found that people of color involved in same-sex relationships are more likely to have kids compared to whites in same-sex couples. In fact, 1 of every 3 individuals in same-sex couples raising children is a person of color. Further, while all couples with children “generally fare worse with regards to educational attainment, insurance coverage and median income”—kids are expensive!—“this is especially true for individuals in same-sex couples.”

“These data further indicate the need for public policies that aim to support families with children in achieving educational and economic goals in ways that simultaneously support racial/ethnic and sexual orientation equity,” said Wilson.

There are several ways in which Congress could help remedy this situation. States could pair Medicaid expansion (23 states currently do not have it) with a raise in the minimum wage to $10.10. Congress could expand and strengthen both the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC). Poor LGBT people would especially benefit from legislated protections and non-discrimination policies in the workplace.

It is time we stop thinking of the LGBT community as mostly white, affluent, gay males, and begin to recognize how the interlocking oppressions of race and gender affect our LGBT community and conspire to make our poverty rates higher than the norm, especially for those of us raising children. We need a deeper exploration of how sexual orientation, race and gender intersect, if we are to combat the poverty that – perhaps surprisingly – pervades much of our community.

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Labor

Raising the Minimum Wage and Affordable Child Care Go Hand in Hand

A few years ago, a young man named Israel and his wife enrolled their daughter in one of our Early Head Start programs. Israel, the son of Mexican immigrants, worked long hours as a barber. His wife worked too, but the family still lived below the poverty line.  Initially, they were simply glad that their daughter had a welcoming and safe place to go every day, and that they could work more hours without paying for costly childcare. But gradually Israel began to notice something he hadn’t anticipated.

“I realized that even though my daughter was the one in the program, our whole family was benefiting,” he says. “The teachers taught us to be hands-on parents, and to set aside family time to eat together, talk, and share together.”

The program provided more than just child care, it helped the whole family.

For low-income families like Israel’s, poverty complicates every aspect of their daily lives, from holding a job, to finding transportation, to raising healthy children. For these families, New York City Mayor Bill de Blasio’s recent executive order raising the hourly minimum wage from $11.90 to $13.13 for employees at projects that receive more than $1 million in city financing is an important step forward.  Contrary to misconceptions about people in poverty, these families work, and they work hard. In fact, there are 265,000 low-income families in New York City with at least one working parent. The new wage will increase the annual income of thousands of workers from $16,640 to $27,310, lifting a family of four above the federal poverty line.

While an increased minimum wage will be an enormous help to struggling families, it isn’t enough. We need to invest in other work supports that ease the economic strain on families and create thriving communities.

The Economic Policy Institute calculates that to achieve a “modest living standard,” a family of four needs $94,676 to live in New York City, including over $2,000 for child care each month. When even middle class parents are “crushed by the cost of child care,” you know that low-income families are feeling the pain even more. In the state of New York, the average cost of an infant child care center consumes 58% of the state median income for a single mother. One study found that child care is the single greatest expense among low-income families in the city.

That is why access to early childhood education, quality childcare, and after-school programs should be implemented hand-in-hand with minimum wage raises—they serve as a multiplier of a family’s earned income because parents don’t have to pay for costly or unsafe child care, and they also allow parents to go to work. The proof is in the data: More than 70% of New York City parents with kids in an after-school program said that the program made it easier for them to keep their jobs; that they missed less work; and that they were able to work more hours. Low-income parents with child care subsidies are also less likely to have child care disruptions that hold back their careers or result in job loss.

These programs are an investment in our future too. The Child Center of NY works with some of the most impoverished communities in New York City, in neighborhoods like South Jamaica, Corona, and Far Rockaway.  Every day we meet hardworking parents who seek our services because they want their children to learn and succeed—to interact positively with their peers, form relationships with adult mentors, and learn outside of the classroom too.  We also work with whole families to help them achieve their goals too.

When Israel came to our Head Start program it was perfectly clear that he knew the value of hard work.  His own parents had worked long hours at multiple jobs when he was growing up.

“They didn’t have much time to spend with us,” he says. “I wanted more for my family than that.”

Our staff encouraged him to be involved with his daughter and her class. He began helping in the classroom and encouraged other fathers to do the same. He ran for president of the program’s Parent Council and won, and became more involved with his children at home too.

By the time both of his children had completed our Head Start program, Israel had developed his leadership skills, which in turn helped him find investors in the community so he could open a barbershop. Now, five years later, Israel owns the shop—a neighborhood institution just a few blocks away from the Head Start program. He has eight employees and earns more money working fewer hours than he did prior to starting his own business. He spends the extra time with his children and is currently planning to renovate and expand his shop.

Israel says The Child Center gave him the confidence and the means to strengthen his relationships with his children and to grow his business. In our poorest neighborhoods, there are countless men and women who want to do the same—to work hard and make a better life for their families and communities.

Decent wages and quality affordable childcare will create new opportunities to do both.

Editor’s note: This article has been updated to clarify which workers will receive the New York City wage increase.

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