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History of the Living Wage Campaign

THE FIRST ORDINANCE

 

In the fall of 2001, Jimmie Martinez learned that his employer, Furr’s Super Market, was going out of business. Soon after, he learned that his particular store, in Santa Fe, had been purchased by Lowe’s, an anti-union firm from Texas. When Lowe’s reopened the store, it refused to hire back almost any union people, and the salaries were reduced from the $10 to $16 an hour range, with benefits, to the $6 per hour range without benefits.

 

Jimmie was angry. He had been a member of the United Food and Commercial Workers, Local 1564 in Albuquerque, but never active. Coincidentally, Jimmie was a City Councilor in Santa Fe. Therefore, he, along with Councilor Frank Montano, in the fall of 2001 introduced a proposed Living Wage ordinance that applied to city employees, city contractors, and to the private sector generally.

 

Jimmie asked a long time community activist, Jerilou Hammet, to help him. She attempted to rally people to support the ordinance. Labor and community activists began to get involved. When Frank Montano declared for Mayor in the March, 2002 elections, he came out in support of a living wage. Jimmie was up for re-election.

 

A hastily put together campaign, with limited union and community support, did produce results. A few weeks before the March, 2002 election, then Councilor Frank Montano steered a traditional living wage ordinance (adopted by over 100 localities around the country) through the City Council unanimously. It applied to City of Santa Fe employees and contractors. The Ordinance would raise the minimum wage to $8.50 beginning July 1, 2003; $9.50 beginning July 1, 2004; and $10.50 beginning July 1, 2005. City of Santa Fe unions – the American Federation of State County and Municipal Employees, the International Association of Fire Fighters, and the Fraternal Order of Police - in the months after the ordinance was announced negotiated agreements that brought all their members above the $8.50 level.

 

Additionally, the City Council established a “Living Wage Roundtable” to be made up of four “labor representatives,” four “business representatives,” and one neutral. The Roundtable’s purpose was to explore ways of extending the Living Wage to the private sector. The Roundtable was to start meeting in the spring of 2002 and report their results by the fall.

 

Councilor Jimmie Martinez lost his election to David Pfeffer in March, 2002. In the 2002 campaign Pfeffer said he did not favor a living wage, but did not make a big point of it. Councilors Montano and Patti Bushee, who were both running for Mayor, both lost to Larry Delgado, who was reelected for a second term.

 

 

THE LIVING WAGE ROUNDTABLE

 

Councilor Matthew Ortiz was involved with the appointments to the Living Wage Roundtable for Mayor Delgado, as he was also one of the sponsors of the original Living Wage Ordinance. Each City Councilor was asked for recommendations for appointments. Councilor Ortiz appointed Carol Oppenheimer. She is a labor attorney and educator and Councilor Ortiz had previously practiced law with her. The other three labor appointments were Pat Chavez, a staff representative of the National Education Association-New Mexico; Stan Rosen, a retired labor educator from Chicago; and Kenneth Pin, an employee of the Eight Northern Pueblos. The four business representatives were Jerry Easley, the head of the Santa Fe Chamber of Commerce; Sam Goldenberg, a business broker; Lou Shapiro, the owner of a Santa Fe taxi cab company, and Al Lucero, the owner of Maria’s Mexican restaurant. The neutral representative was Diane Pinkey, who teaches at the Santa Fe Community College and, at the time, was a leader of a literacy group.

 

The Roundtable was quickly at loggerheads. It became clear early on that the business representatives would never agree to any increase in the wages of their employees. They were trying to bog down the process and exploit any mistakes the labor representatives might make.

 

 

THE LIVING WAGE NETWORK;

 

After the initial Roundtable meetings, it became obvious that there was a need to start putting together a broad community/labor alliance to build real support for a Living Wage. The Roundtable asked for an extension of time, until the end of 2002, in which to report back to the City Council. This gave more time to organize support for a strong pro-worker ordinance..

 

The first organizational meeting of what was soon to be termed the “Santa Fe Living Wage Network” took place in August, 2002. Several people became key in the Network. Pat Chavez, who was on the Roundtable, was very active throughout and brought in-kind support from NEA, such as copying of materials and use of the NEA facility. Charlotte Roybal, a Democratic Party activist and Chair of Frank Montano’s unsuccessful mayoral effort, brought in a wealth of knowledge about important supporters and the current City Councilors. David Thompson, a Green Party activist, had enormous knowledge of donors to the City elections, as well as very good campaign organizational skills. Bob Samuel, a labor pension specialist, became very involved, had a good strategic sense, and is a good writer. Carol Oppenheimer, also on the Roundtable, and her husband, Morty Simon, became actively involved. Their background as labor attorneys was helpful to the group. Reni Storm, an operating room nurse and local union activist, has remained a committed member of the Network and took on the daunting task of producing living wage buttons for all to wear in the community. About a dozen other people from housing groups, environmental organizations, unions, gay and lesbian organizations, and Somos Un Pueblo Unido, a Santa Fe immigrant rights group, played important roles as second level leadership. Many became more active as the campaign gained strength. A local artist, Mariannah Amster, designed the logo. Her partner, Frank Ragano, a local general contractor, has been a fervent supporter of the living wage and brings to the table a progressive small business perspective. Jo Kenny, previously with the Coalition for Equality in New Mexico, has brought invaluable organizational and organizing skills to our effort.

 

 

THE CAMPAIGN

 

The campaign started with the holding of two large meetings, one a general organizational meeting and one specifically to discuss what the “labor proposal” of the labor representatives on the Roundtable should be. About 50 people showed up at each meeting. Several of the labor representatives on the Roundtable were there at the second large meeting to learn about people’s concerns. This started the buzz and gave the labor proposal some legitimacy.

 

About the same time members of the Network started going to “progressive” events, such as an evening with Arundhati Roy and Howard Zinn, part of a series of speakers brought to Santa Fe by the Lannan Foundation. We stopped people going in and out so we could talk about the living wage and have them sign “interest cards.” We also started a speakers’ bureau. Speakers then met with church, community, and school groups to talk about the living wage and got people there to fill out interest cards. We spoke to almost 50 different organizations over the course of the campaign.

 

Using those interest cards, we enlisted the help of numerous volunteers to contact or call hundreds of people to ask them to sign on to an ad which would be run in the Santa Fe New Mexican, just before the Councilors voted. The Network worked on this for at least 3 months. For each person signing up, we wanted an address, but also a phone number or email so that we could contact them. Our goal was to have 1,000 names by the time the City considered the proposal, which we hoped would be in February. We also started this web site and developed a strategy for op-ed pieces and appearances on radio talk shows.

 

The Network collected over 1,500 names of individuals, unions, and community organizations. Fifty businesses signed on. We had most of the union locals in the state sign on. Several of them made contributions. The principles in three local foundations signed on, including Patrick Lannan of the Lannan Foundation. The Catholic Church gave us $500. We got the unanimous endorsement of the Santa Fe County Democratic Party. We collected a 750 person email list.

 

In the final stages of the campaign, volunteers phoned every one of the people on the list of supporters. Our core of activists phoned everyone they knew to urge them to come out the night of the vote. A union group personally called 800 union members in Santa Fe a few days before the Council meeting. The State AFL-CIO used an auto-dialer to call their list of union members in Santa Fe. The Catholic Church ran a quarter page ad in Pasa Tiempo, the local weekly arts magazine, and put out a leaflet to parishioners urging them to attend the City Council meeting.

 

Six hundred people came out the night of the vote, the biggest crowd ever at a City Council meeting. Two-thirds wore an “I support a Living Wage” sticker with logo. With only one minute per person, living wage supporters spoke for over 2 ½ hours. The living wage speakers there, and at two City committee meetings in the weeks before the council meeting, included a prominent local priest, Catholic lay activists, two rabbis, a number of Protestant ministers, several doctors, a dentist, the New Mexico AFL-CIO President and Executive Director, the head of the New Mexico Hispanic Roundtable, Dr. Sam Bowles – now head of the Economics Department at the Santa Fe Institute, Dr. Robert Pollin from the Economics Department at the University of Massachusetts- Amherst, many low wage workers, struggling single mothers, many business owners, lawyers, college students, high school students, teachers, politicians, and many, many others. Speakers also included representatives from a number of unions: the Communications Workers of America, the American Federation of State County and Municipal Employees, the American Federation of Teachers, the National Education Association, the International Association of Fire Fighters, the United Food and Commercial Workers, District 1199NM of the National Union of Hospital and Health Care Employees, the New Mexico Building and Construction Trades Council, the International Brotherhood of Electrical Workers, the Plumbers & Pipefitters, the Ironworkers, and the Sheet Metal Workers. It was an impressive display of democracy in action.

 

 

THE FINAL VOTE

 

The final ordinance passed the City Council 7 to 1. Like the original proposal, the ordinance passed that night phases in from $8.50 to $10.50 per hour, but does it over four years rather than two. It goes into effect on January 1, 2004, and it covers only 60% of Santa Fe employees, rather than the 75% originally proposed. That was accomplished by raising the threshold for applicability to businesses with 25 or more employees (9% of Santa Fe employers), rather than the original 10 or more employees (20% of Santa Fe employers).

 

The Council also added another requirement. The City agreed to hire a firm to establish an economic “base line” before the ordinance comes into effect, so that it can be compared to data to be collected in July of 2005, right before the step up to $9.50. The comparison will judge the effect of the law. The base line study was awarded to labor economists at the University of New Mexico Bureau of Business and Economic Research in Albuquerque.

 

The ordinance also contains a novel enforcement mechanism. In addition to the City having authority to enforce the law either civilly or criminally, any individual aggrieved, or organization whose members are aggrieved by a violation, will have a private right of action against the violating business. The remedies include treble back wages and attorneys fees. The private right of action can also be used if a person is retaliated against for advocating or exercising rights under the Ordinance.

 

 

THE LAWSUIT

 

Immediately after the Ordinance was enacted, in early March of 2003, the Chamber of Commerce and several local businesses filed a state lawsuit challenging the legality of the living wage. The Brennan Center at New York University, and the Paul, Weiss, Rifkind law firm of New York, agreed to help the City defend the lawsuit pro bono. The City filed a motion to have the Ordinance upheld without a trial. On December 10, 2003 Judge Daniel Sanchez of the Santa Fe District Court dismissed most of the lawsuit but retained some issues for trial. On December 18th he gave the Plaintiff businesses a Preliminary Injunction delaying implementation of the Living Wage Ordinance until trial. The trial was held from April 12 to 16, 2004. On June 24, 2004, Judge Sanchez ruled that the Living Wage Ordinance was legal and ordered that it take effect immediately. He added that he would not allow it to be effective back to January 1, 2004 because of the difficulty of determining damages.

 

The Plaintiff businesses then appealed Judge Sanchez’ ruling. It is currently in the New Mexico Court of Appeals. Of note in that appeal is that in March, 2005 two amicus (friends of the court) briefs were filed in support of the City’s position. One was a brief explaining the social justice and economic principles involved. That brief was filed by Phil Davis, an Albuquerque attorney, on behalf of the Santa Fe Partnership for Social Justice of the Catholic Church, the New Mexico Conference of Churches, the Unitarian Universalist Service Committee, the Hispanic Roundtable of New Mexico, Somos Un Pueblo Unido, the Mexican-American Defense & Education Fund, the New Mexico Federation of Labor, AFL-CIO, the National Education Association – New Mexico, the Democratic Party of Santa Fe County, the Green Party of Santa Fe County, the Human Rights Alliance of Santa Fe and Northern New Mexico, the New Mexico Voices for Children, the Hunger-Poverty Network of Northern New Mexico, the New Mexico Human Needs Coordinating Council, the Santa Fe Living Wage Network, and the New Mexico Public Health Association.

 

A second amicus brief on the issue of home rule was filed by Duff Westbrook and Maureen Sanders, Albuquerque Attorneys, and Professor Richard Briffault of Columbia Law School and behalf of the New Mexico Municipal League, the City of Albuquerque, and 29 law professors from around the country, including law professors at the University of California at Los Angeles, the University of Oregon, Pennsylvania State University, Harvard University, the University of New Mexico, the University of Hawaii, Georgetown University, Duke University, the University of Illinois, Stanford University, the State University of New York at Buffalo, New York University, Georgia State University, the University of Michigan, the University of San Francisco, Washington University, the University of Baltimore, the University of Pennsylvania, Chicago-Kent College of Law, Albany Law School, Saint Louis University, and University of Virginia.

 

The case was argued before the New Mexico Court of Appeals on June 22, 2005. On November 29, 2005 the New Mexico Court of Appeals ruled unanimously affirming Judge Sanchez. They found that none of the legal bases argued by the Plaintiffs to challenge the Ordinance were valid. The Plaintiffs subsequently decided not to try to appeal the Court of Appeals decision to the New Mexico Supreme Court.

 

The Coca-Cola Bottling Company of Santa Fe also filed a federal law suit against the Santa Fe Living Wage Ordinance in late 2003. However, they abandoned their law suit in the fall of 2004 after Judge Sanchez’s ruling.

 

 

THE LEGISLATURE

 

The Santa Fe Chamber of Commerce and some other business associations also arranged to have a pre-emption bill introduced into the New Mexico State Legislature in February of 2003. The bill would have taken away Santa Fe’s right to pass a living wage law. The attempt passed in the State Senate. However, the bill was killed in the House Labor Committee by a straight party line vote. Senator Roman Maes, who helped get the pre-emption bill passed in the Senate, was subsequently defeated in the June, 2004 Democratic primary when he ran for re-election. The Santa Fe New Mexican attributed his defeat to his opposition to the living wage.

 

Another pre-emption bill was introduced in the 2005 legislature. This time Governor Richardson, the Albuquerque Journal, the New Mexico Municipal League, the City of Albuquerque and many other entities were opposed to the bill because it would take away powers of cities across the state. Once again the bill was killed in the House Labor Committee by a 5 to 3 vote. All Democrats voted against it and all Republicans voted for it. An attempt to “blast it out” onto the House floor was defeated by another straight party line vote. In the State Senate, the Corporations Committee never heard the bill and Democratic members of the Committee who voted for the pre-emption bill in 2003 changed their position and opposed it in 2005.

 

 

THE RAISE TO $9.50

 

In the summer of 2005, months before January 1, 2006, when the Living Wage was to rise to $9.50 per hour, Councilor David Pfeffer – the one Councilor to vote against the Living Wage in 2003 – introduced an amendment to delay the increase. His amendment to the Ordinance provided that the $9.50 be delayed until the completion of the study of the effects of the Living Wage being done by the Bureau of Business & Economic Research of the University of New Mexico. The BBER was to give a preliminary report on the Living Wage prior to January, but the final report was not to be completed until June, 2006.

 

The Network was happy that all the State economic data – number of new jobs, rate of poverty – looked very good and did not want a delay. The BBER issued their preliminary report on December 12, 2005, two days before the City Council was to vote on the Pfeffer Amendment. The report showed  that there did not seem to be any damage caused by the Living Wage. There were, in fact, 1,700 new jobs created in Santa Fe since the law came into effect and the number of recipients of Temporary Aid to Needy Families fell 10% in Santa Fe while remaining the same in the rest of the state. The unemployment rate was much lower in Santa Fe than in other major New Mexico cities and the State as a whole. Although there were some reports of increases in prices and curtailing of overtime, in all the report was positive.

                    

Prior to the December 14th City Council meeting, hundreds of calls were made to Councilors urging them to go through with the $9.50. Additionally, the Network submitted petitions with the signatures of 2,000 Santa Feans asking that the Council reject the Pfeffer Amendment. The evening of the City Council meeting, hundreds of supporters of the Living Wage filled Sweeney Convention Center; 75 spoke in favor; and only 4 people spoke against the $9.50. In fact, many more businesses testified in favor of the $9.50 than against it. At the end of the evening, the Council voted 7-1 to proceed to $9.50. However, they also amended the ordinance so that any future increases would need to be approved before going into effect.

 

 

RAISING THE STATE MINIMUM WAGE

 

In January of 2006 the Speaker of the House and Governor Richardson proposed raising the state minimum wage from $5.15 per hour to $7.50 per hour over two or three years. Both the Speaker and the Governor promised that Santa Fe would be “carved out” and that we could continue to operate under our Living Wage Ordinance. The Governor’s proposal came days after the New York Times had a story about the Santa Fe Living Wage on the cover of their Sunday magazine. See New York Times Magazine, January 15, 2006. That day the Governor contacted the Network and promised a “carve out.” The raise passed in the House but was not acted upon in the Senate before time ran out in the 30 day session. The Living Wage Network was active in lobbying for a raise in the minimum wage.

 

In January of 2007 the Speaker introduced a bill in the House that would raise the minimum wage to $7.50 in 18 months, did not provide for preemption of the power of any local governments to have a higher wage, and contained a cost-of-living adjustment each year. The President of the Senate introduced a bill that would raise the minimum wage to $7.50 by January 1, 2009, would preempt local governments until 2013 from having a higher minimum wage except for Albuquerque and Santa Fe, and contained no cost-of-living adjustment. The Senate bill was described as the “Governor’s bill.” It was criticized mainly for the long time that it would preempt local governments from having a higher minimum. The Network called it a “wage freeze” and was again active in lobbying for the Speaker’s bill and against the Senate bill. In the final hours of the 60 day session the Senate bill was passed by both houses but the preemption was shortened until only January 1, 2010; a year after the beginning of the $7.50 minimum going into effect. As with all the versions of the law, the bill passed “carved out” Santa Fe and lets us continue under our ordinance.

 

A week before the end of the 2007 legislative session, Barbara Ehrenreich spoke at a Santa Fe Living Wage Network fund-raiser at the Lensic Theater in downtown Santa Fe. Her talk, Will Work for Change, was given to a sold out crowd. Mayor Coss was the master of ceremonies. The tickets were $5 for students and $10 for regular admission, but many individuals and organizations volunteered to be sponsors. The event, therefore, cleared $25,000 in profit. The day of the event, the Network convened an activist meeting with Barbara, attended by more than 100 people, at the IATSE union hall. Two months before the event, the City of Santa Fe had launched its first “community read” and youth film festival. The book for the read was Nickel and Dimed by Barbara and the film festival focused on poverty in the community.

 

 

A LIVING WAGE FOR EVERYONE – NO EXCEPTIONS

 

On July 12, 2007 Mayor Coss announced a compromise agreement on the future of Santa Fe’s Living Wage Ordinance. The agreement was between the Living Wage Network, local unions, the faith community, Somos Un Pueblo Unido and the local business community, including the Chamber of Commerce, the Lodgers Association, the Restaurant Association, and the Santa Fe Alliance, representing small businesses.

 

The agreement proposed three things. First, the living wage would be extended to cover all employees in Santa Fe, not just those in businesses with 25 or more, starting on January 1, 2008. Second, the requirement that the City Council approve all wage increases was removed, so that there would be an automatic yearly cost of living adjustment to the Living Wage, starting January 1, 2009. Finally, the Living Wage would not go to $10.50 per hour on January 1, 2008, as had been set out in the original ordinance, but would stay at $9.50 until the cost of living increase on January 1, 2009.

 

Mayor Coss announced that this compromise was in a proposed ordinance sponsored by himself and Councilors Matthew Ortiz, Miguel Chavez, Rebecca Wurzburger, Carmichael Dominguez, and Ron Trujillo. Councilors Ortiz, Chavez, and Wurzburger had been on the Council when the original ordinance was passed and were instrumental in that success

 

The Living Wage Network ran a campaign over the next few months entitled “A Living Wage for Everyone – No Exceptions.” There was particular activity with young people as there were rumors that the City Council was considering an exemption for young people or young people who dropped out of school. Seventy-five young people attended a rally a couple of weeks before the City Council considered the changes.

 

The Network also circulated a petition that received almost 4,000 signatures. Thirty volunteers did phone banking to living wage supporters for six weeks leading up to the vote. The phone bankers asked supporters to call their councilors. In the final week before the vote, a newsletter was mailed to 4,000 supporters urging them to come to the Council meeting and pro-living wage yard signs were distributed around the City.

 

The City Council considered the proposed changes on November 28, 2007. Over 250 people overflowed the Council chambers. After hearing from 75 supporters of the changes and one opponent, the Council approved the changes unanimously.

 

 


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