Thursday, November 29, 2007

'Living Wage' for Everyone

By Dan Boyd

Journal Staff Writer
    Santa Fe's "noble experiment," as one observer called it Wednesday, will take another step into the future on Jan. 1, 2008.
    City councilors approved broadening the city's trailblazing "living wage" law to all workers by a unanimous vote, drawing hearty applause from an overflow crowd that overwhelming supported forging ahead with the country's highest minimum wage.
    Opposition to the changes had largely dissipated leading up to Wednesday's vote as union leaders, business groups, school officials and immigrants rights groups all threw their support behind the proposal.
    After more than 50 people, many of them high school students, had voiced their support, city officials acknowledged the significance of the vote.
    "I think in 100 years or so, philosophers, poets and historians are going to read the minutes of the living wage and get a lot out of it," Mayor David Coss said. "We're a national example."
   
Santa Fe's current living wage law requires businesses to pay their employees a minimum of $9.50 per hour.
    But the law only applies to businesses that employ 25 or more workers, or about 60 percent of the city's work force. Such a loophole has made enforcement difficult, proponents of the change said, and created an uneven playing field.
    The new living wage law will require all businesses, regardless of how many workers they have, to pay at least $9.50 per hour. The ordinance will also implement yearly minimum wage increases, starting in January 2009, based on the Consumer Price Index.
    Rumors had swirled leading up to Wednesday's vote that councilors might move to exempt young people or disabled workers from receiving the super-sized minimum wage. In response, local students helped gather more than 4,000 signatures in opposition to any exemption.
    Those fears, however, never materialized.
    When Councilor Ronald Trujillo cast the final vote shortly after
9 p.m.— voting "sí" in an apparent nod to those who had testified in Spanish— those left from a crowd of more than 200 people rose in a standing ovation.
   
Santa Fe enacted its living wage law in June 2004 after several years of discussions and a bevy of legal challenges. The wage was originally set at $8.50 per hour and was increased to $9.50 per hour in 2006.
    The rate had been slated to increase once again on
Jan. 1, 2008, this time to $10.50, but a broad coalition announced earlier this year it had agreed to put off the increase and instead broaden the living wage.
    While skeptics had predicted the city's economy would suffer with the increased minimum wage, preliminary studies have shown the city's economy has actually grown since the law was passed.
    "We debunked the myths about what was going to happen," Councilor Rebecca Wurzburger said.
    But certain concerns remain. Despite the popularity of Santa Fe's living wage law, the high cost of housing continues to force many local workers to commute daily from outside the city.
    And despite the fact most business owners now support the law, some still harbor doubts.
    Joe Cieszinski, who owns a religious bookstore on St. Michael's Drive, was the lone opponent of the changes proposed Wednesday night.
    Paying all his employees at least $9.50 per hour will decrease his taxable income by $10,000 annually and preclude him from hiring more workers, Cieszinski said.
    "It will be very, very hard for me and others to be in existence if this passes," he told councilors.
    To most in the crowd, however, such words rang hollow.
    Emily Franklin, also a small business owner and the co-chair of the local Green Party, welcomed the broadening of the living wage with open arms.
    "It is not a hardship, it is a responsibility to pay a living wage to my employees," Franklin said.
    Dozens of students also said a higher minimum wage will help them save for college and break out of poverty's grasp.
    To city councilors, some of whom had been skeptical about the ordinance's impact, such testimonies reinforced the living wage's original point.
    And starting Jan. 1, size doesn't matter.