New local living wage: approved

Because the federal minimum wage of $5.15 does not provide a living wage for full-time workers, Bloomington has legislated to pay the difference for working Hoosiers living within the community.\nThe Common Council voted to enact Ordinance 05-08 Wednesday, paving the way for certain groups of workers to receive a sufficient wage to meet basic needs in housing, child care, food, clothing, household items, transportation, health care and taxes. The ordinance requires the city, some city-subsidized nonprofit groups, city-subsidized for-profit organizations and city service contractors to pay some or all workers $10 an hour -- $8.50 an hour if health care is provided.\nMore than 100 cities across the United States already have legislated living wage ordinances for their communities, and about 100 other cities are discussing the proposal or actively researching the issue. The Common Council has said the living wage ordinances in Madison, Wis., Ann Arbor, Mich., and Bellingham, Wash., have provided models for Bloomington because of their comparable demographics. \nCommon Council President Andy Ruff, the ordinance sponsor, said it is "pretty clear from the evidence" that in cities with a legislated living wage, the costs are not passed on to the city, businesses have found gains in productivity, businesses have reduced training costs and turnover costs, and more workers will be protected by the ordinance in the future.\nCouncilman Ruff also cited Bloomington's need to protect "more and more workers over time" until the federal government "steps up to the plate." Ruff said research has shown the ordinance protects workers from outsourced labor, as external businesses and contractors will not be exempt from paying their employees anything but a living wage.\nDeputy Mayor James McNamara said Mayor Kruzan's office has taken a hard look at the fiscal impact of the living wage on the city budget, but the exact financial burden on taxpayers could not be calculated at that time.\n"We will not know precise impact to the penny until the ordinance is passed," he said. "The city already pays well above the living wage ordinance."\nCritics of Bloomington's proposed living wage ordinance cited government interference in the private sector, government micromanagement of local businesses, the financial burden placed on tax payers, saving a few at the expense of exploiting the poorest among us and the "willing" inability of certain groups of workers to succeed in America. \nVocal opponents included Monroe County Chairman of the Republican Party Stephen Minarik III, a student from IU Kelley School of Business and seven other community members.\nMayor Kruzan said most community opinions offered about the living wage ordinance seemed thoughtful and sincere. However, the mayor said most criticism contained "one fatal flaw with the argument" -- people didn't read the ordinance. \n"We have a responsibility to read it first before we misunderstand it," Kruzan said. \nSupporters cited continued progressive leadership, community responsibility to pay a fair price for work provided, the willingness not to support poverty wages, corporations not acting in the best interest of their employees and the idea that "humans should not be confused with robots."\nThose in vocal favor of the ordinance included Monroe County National Association for the Advancement of Colored People President William Alonzo Jr., two honor students from IU's Kelley School of Business and 15 other community members. \nBloomington resident Anne Novak, a Living Wage Coalition representative, said the living wage ordinance "is no gravy train." She said "numerous studies" suggest common minimum wage workers cannot afford a college education for their children, they cannot plan for their retirement, they cannot afford vacations and they cannot afford a home -- many luxuries often take for granted by Hoosiers living within the Bloomington community. \n"(The living wage ordinance) will make a difference, a beginning difference," she said. \n-- Contact City & State editor David A. Nosko at dnosko@indiana.edu