Living Wage Bill Would Kill Jobs For Some, Report Finds
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In advance of Thursday's City Council hearing on a bill to pay some workers higher wages, the Bloomberg administration is releasing a new study that throws cold water on the idea. NY1's Grace Rauh filed the following report.The idea, supporters say, is simple: any company that gets city subsidies of a certain level should be held to a higher standard, and be required to pay their workers a so-called "living wage."
"If we're going to give subsidies, we're gonna give welfare to big companies, we should at least be able to ask them to pay living wages. That seems to be an even exchange. If you don't want the subsidies, don't take them," said City Councilman Jumaane Williams.
Under the Living Wage bill, projects receiving city subsidies of $100,000 or more would have to pay workers $10 an hour plus benefits or $11.50 an hour if no benefits are provided. The minimum wage in New York State is $7.25 an hour.
The proposal is making its way through the City Council. But it's success is far from assured, and opponents now have a new set of figures to back them up. A study commissioned by the city's Economic Development Corporation found that while there would be wage gains for some workers, the legislation would cause other New Yorkers to lose their jobs.
"The basic finding is that there are substantial job losses that would happen as a result of the legislation," said Tokumbo Shobowale of the Office of Deputy Mayor for Economic Development.
Shobowale says City Hall has the same goal as the bill's supporters: to see more hardworking families make more money and do better.
"It's just that this particular method of doing it doesn't actually achieve those ends. It actually hurts people as much as it helps them," Shobowale said.
Supporters, though, are already attempting to poke holes in the report.
"The single most important thing needed to help the working poor rise out of poverty is an increase in wages. There is nothing in this study that tells us how we are going to get there," said James Parrott of the Fiscal Policy Institute.
The debate may come down to City Council Speaker Christine Quinn, who ultimately decides which bills advance to the floor for a vote.
The Speaker has been trying, so far, to stay on the sidelines of the fight.
An aide to Quinn says only that she is looking forward to learning more about the city's living wage report at Thursday's hearing.