Loading...
HomeMy WebLinkAboutAgenda Bill 7.A 09/20/2004CITY OF PETALUMA, CALIFORNI L"�­ AGENDA, BILL SePTemoer 2U. AOLIAitenda Title: Presentation and Dis Regarding ossible 9 7��aie:l Septe mber 20, 2004 Aving Wage Ordinance. 'Meetijig:Tim ❑ 3:OO-Pm 7 :00 PM :Category (check one): E]CWjsentCalendar ❑ Public Hearing M New Bus ness ❑ Unfinished Business, F Department: Dilrectorr Contact Person:, PhoneAumber: City Manager Michael'Riefffian Michael B ie'rm*an, 778-4345 Cost of Proposal: Account Number: Amount Budgeted-, Name of Fund: Attachments to Agenda Packet Item 1. Recently passed living wugd: ordinance for the City of Sonoma . 2. City of Petaluma Service, - 'C'On'tracts Summary (as prepaied by US. Berkeley Institute for Labor and Employment) 3. ' A Living Wage for - Santa' Rosd an Petaluma, a publication of the UC Berkeley Center for Labor Research and Education An L,4 Wage Laws -& C­ommunities , Apublic - ation of the Brennan Center for justice, 5�: California Labor.& Employinent Spring 2002 '6. UC Berkeley Labor Center brochure Summary Statement: The Living Coalition of Sonoma County wil give a presentation to the ,Council regarding a* living wage ordinance' inan for Petaluma. The City of Sonoma recently passed a living Wage ordinance (attached), and the: 'Coalition proposes to craft, a similar - ordinance' for Petaluma. Researchers from the UC Berkeley Center for Labor Research, and Education and the Institute for Labor and Employment would prepare a fiSdal JMDact report u9ing1he Softorri7a ordinan 3: -ce as a baseline, with the thresholds and exemptions remain ug' ..more, or less the same. ' The "Living Wage Coalition of"Sorionia. !County proposes. to ,split, the cost of the fiscal impact report, estimated to cost approximately $5,000. Recommended'Cit Y Cou�cil i Action/8uggested.Motio'w _, Discussion and Direction regarding the -praposed living wage ordin " ance. Reviewed - by.. Finance Director: 'Reviewei1byCit they: V,: At Approv ed byCity'Manage Date: Date. Date: o ay s Date: Revision ,# and Date Revised: File Code: L"�­ 31 May 2004 PROPOSED! LNING'WAGE - "CITY "OF SONOMA. Page 1 of 9 k Impacts of.the- proposed Living Wage Ordinance for ihe,City..of Sonoma: ' City Employees, Contracts, leases;. Franchises, Agreements and Grants 'Revised Report 11 "May 2004: Marcee Harris;. M.P.P. Go_ dm_an School of Public Policy 'University of Californi'a.at Berkeley Dr Peter V. Hall"' ;Faculty of Environmental Studies University of Waterloo, . 1. Introduction and Summary The purpose of the', proposed Lining Wage Ordinance. fovthe City, of Sonoma (including the City's Community. Development Agency) is to ensure that employees of the City, those working on contracts with the City, and those working.for firms and non- profits receiving. substantial grants, ?loans fi nancal assistance; leases, concessions, franchises and other forms of support from "the.City;.earni_a�4iving wage' with benefits. The purpose.of this report is to present estimates of the t`ikely' mpact'of the proposed Living Wage Ordinance for the City of Sonoma. as applied to city employees, service contractors, lessees, franchisees, and recipients of financial assistance. " This report updates the estimates contained in our February 2'004 report. It is based on further discussion and, information about the impact of the proposed ordinance. The key revisions are as follows: • The impact on direct city employees as estimated,by city staff is accepted. Seven employees will receive additional pay, leave andhealth:benefits costing- $12,300 per year: • The employment status of Sonoma Valley Visitors Bureau employees has 'been confirmed_. Ten 'employees will receive additional pay, leave and health benefits costing'$24 ° per year: ® The Proposed Ordinance has been revised ekempt volunteers; including.part- time. f refi'ghte_rs ,and firef. hters with EMT. certification It, is estimated that approximately 40 Emergency Medicate Technicians and Paramedics will receive add_ itional pay, leave and Health benefits costing up to $ L04;700 per ''year. The estimates indicate that 57 low -wage workerse will receive wage, leave and/or health benefit increases worth an, of up to $2,270,per worker per year under the proposed policy. This,will cost "employers a total of up to $1,41,400 year. It is likely that most of this cost willbe borne by the „City. This represents up to 0.9% of the 2002 /3 City Budget, or up to $15.49'per per year. 1 Research Associate' ofthe Institute�for. Labor and' Employment, University''of'California,at Berkeley. Z &this report the term `city' m ean s the :City of Sononia' and' all:City .agencies._ 31 May 2004 PROPOSED LIVINGWAGE - CITY OF SONOMA Page 2 of -9 A significant proportion of the estimated benefits and cost& accrue because part' -time EMTs and Paramedics Working for the City are covered `by the proposed policy. If'these groups . were not covered'underthe policy, the cost to employers would be reduced.to $36,800 per year, and only 7 workers would benefit. In,summary; the proposed Living Wage Ordinance Will ,generate modest but very tangible direct benefits for low -wage workers, While the indirect effect of the proposed policy is that it enhances the position of the City of Sonoma.as an economic actor, committed to the protection of the livelihoods of workers. The estimates contained in this report were generated using actual employment,'wage and Health coverage data for ihe; employees of :the City Departments, Service Contractors.and Non - Profit Organizations likely to be covered by the ordinance. They are based on assumptions about the. likely exemptions and waivers `to be granted should the proposed policy be implemented. The following. section ,discusses. the assumptions, .data. and methodology used to .o pile this report. Section 3 examines the irmpacts! on each category.of employer covered bythe proposed Living'Wage ordinance: Section 4 presents the aggregate impacts of the proposed Living-Wage.ordinance and Section 5 provides a.conelusion. 2. Assumptions, Data and Methodology A Living Wage Ordinance f City y of Sonoma was introduced in March 2003` (see ww w.livinQzvagesonoma:or g that we have assumed that the Ordinance will establish $13;20 per hour. as the minimum value of wages and health benefits,. and that thei 127daypaid leave benefit.is .pro -rated for part-time employees. The following information was- requested from the City °of Sonoma, and was provided by Carol. Giovanatt , Assistant City Manager and Mike.Fuson, City Manager: ® City job classifications, with _information, on wages, benefit, coverage- and work hours. • Names, contact infortnatior: and contract details regarding: o Non- profit organizations receiving grants,/ contracts: o. For= profit service contract- holders o City franchise -, concession- and lease- holders, o Recipients of financial aid, grants waivers. and other forms of 'assistance. o Contracts, joint ventures, partnerships and iother arrangements that - the? City entered. in order to purchase .or provide services with other Cities .:and/or public agencies. s Our first draft report (February,; -2004) was comp_1"eted to. -the introduction of an ordinance in the 'City of Sonoma, and.hence the, report assumed to follow'the Sebastopol Living Wage Ordinance passed in December',2003. 3l May 2004 PROPOSEDLIVING WAGE - CITY OF; SON,0MA Page 3 of 9 The metho-dologyfoll owed -in this report has, been successfully developed in previous pros dies 4 ...pectiv6 stu i .0 Limn ing Wage, Ordinances. es.. Using the, contact information p ro v i d ed ded by City We interviewed iew.ed thfi of firms, nori-profit organizations` and agencies to obtain I . specific irifonnaii S ji.onthe ize and nature of the contractual arrangement, employment levels, hours w an ' benefit benefit coverage. The report estimates .wage ' and , henefit improvements for directlycoveredwork6rs and those that may experience a spillovereffect, 5 'a well as costs - to employers. I 3. Identification of covered Workers In order to estimate the im pact;6'f1he proposed Livin'g'Wage ordinance We examine six categories ofemp , loyn t _qen arising from City activities . 'separately (see�Tdbl e 1). These categories include city employees, public agency - employees, non -prof em e non p_ ees, service contractors, l6aseh6ld6ffbh8:ffa'ndhisees. The remainder of ihis section outlines the number of employees that will be covered by proposed Uvin'g Wage , "ordinance. , Table 1: Employment,resulting from City of Sonoma activities 'Category AT - 1 Grants Affected Grants ''Ern - 'Comments Contracts 7 Contracts beriefitting! Agreements Agreements City. Departments 47 e 7 r gular - employees; 40 'time EMTs and Paramedics Public agencies 3 0 0 Non - profit TO Sotionia Valley Visitors contracts grants' Bureau Service Contracts J6 0 0, 42 Service Contracts 2'Construction Contracts 2 Publi.c,Sector Contracts Leaseholders 0 0 Franchisees 0 Note: Only includes grants to non- profits >$75,000 city'contracts >$IA000` year. 4 See Hall.(2003)1mpac1s-,q the,proposed Living Wage�Ordinancejbr°the City of Sebastopol., Report of the Institute !f for Labor and Employment; [Available at w,,w., Also see'Zabin, Reich and Hall (1999). Living Wages a0he Porrof-.0akland. Report of 'ihe.�CLRE (11R) :UC Berkeley;afid Re . ic . h, Hall and Hsu (1990). Living Wages. dndAe Ecbnomyw The Benefits andleCosts -(In two, releases ). Report.of the Bay Area Living'Wage Researdh�Group'(IIR) UC Berkeley, [Both available -at'httD:/,'iii.beike'ldy.edu/livingwage Living: Wage Ordinances mayxesult-ifi.higher wages) f6r workers not dire covered by the I ordinance because of what are known as spillover effects. Economists typically distinguish between, .(11 vertical §billpvers, raises within the firm that are designed to mairitain wage hierarchy, and n pj llovers; raises, withint f= he to maintain wage parity covered and uncovered workers or raises in other I firms that arecompeting in the same labor market asAhe covered firm. Empirical, studies of niiiiiniurnwage increases indicate that spillover effects attenuate rapidly; in other words, ; an increase in the wage floor does raise the wages, of those jusf . above the new wage floor, but does not shift4heentire wage structure upwards..Hence.such wage policies result in wage compression.( for a4eView and application to California see Reich and Hall (2001). "A small raise for the bottom�'. In: Lincoln, J and P'0#g "TA'e State of California Labor. Institute ofI - nd ' ustria - I Relations; Berkeley). Current research indicates'the spillover effoc6 of living wage ordinances are more li ' d than those associated with minimum wages° because. • they typically'do not affect all'the workers ,inagiVen1a b market, but that they are similarly attenuated and so do.;conffibute (modestly) to overall Wage c6rppress_i`b-n; 31 May 2004 PROPOSED LIVING WAGE- CITY OF SONOMA Page 4 of,9 i 31 City Employees • According to information provided by City staff„ there are no full -time positions that pay. below the living. wage. Two part -time ,positions are without benefits and/or pay °b.elow the living wage level. City staff indicated thatan, additional 5 employees will receive;leave benefits. Assuming that all currently unfilled positions are filled the estimated cost of these pay, leave acid health benefits to `the City is $12,3'00. The City of Sonoma also employs 19 Paramedics and 21 EMTs who work, on, a part-time basis. 6 This is inadditi on to 18 volunteer firefighters and firefighters withEMT certification who, by -custom and tradition, are paid the minimum wage (firefighters without. EMT certifcation':are paid $6.75 per hour without health and leave benefits; firefighters! with EMT certification are paid $8:49 per hour). While the volunteers will be exempt Wage coverage,, EMTs and Paramedics are more likely to regard their positions as the. first step in their health o c Cu eave b enefi ts . wges are $11 ' per hour for paramedics,and $9 per hour for EMTs, The existing wage differential reflects the:h gher skill. level,required of paramedics and it is likely that some wage differential wi ll be maintained` when the Living Wage Ordinance is im lernented. The size'o p f the new'wage differential depends on bar-gaining ,and market forces, andmeed not necessarily be the same absolute size as the previous d fferenfial.'Eyidence from research on , niinimumwage increases in the 1990s indicates that there, is: both a ripple effect and an absolute wage ;compression when, „such,polcies are implemented. This means that some workers earning close to the new minimum wage level, actually receive wage •increases above lhe=w minimum wage level,, but these increases, are not as large as those: "received at the oldmin rnum'wage;,level. In other words, the wage differential is maintained `but it is, . absolutely sinaller.'tlian - before (see footnote 5 above)*. We have therefore, estimated the .costs of the. ordinance with EMTs paid $13'.20 per hour and paramedics,'paid $14.20. (a $1 differential) and $15.20, (the current $2' differential) per. hour. The cost of the city ofthese'wage benefit and leave increases will be between. $93 and $104,700 year-. ' Althoughwe have not.attempted to estimate the turnover retention, absenteeism and other improved performance ! of the proposed Living Wage Ordinance we;note that these may significant in the case-of EMTs and Paramedics. Furthermore, Cty'staff indicated, that cost savings could be achieved if higher wages for part-time paramedics reduced. the need to assign tasks to firefighter /paramedics working overtime. This will'have the effect of off. - settin g a portion of the estimated cost increase:-to the City. 6 Note that the number of,part-,time paramedics, EMTs and firefighters indicated here is the:number that appeared on the City'a °payroll report, and that they were not all employed 'at the same'aime. Hence, the total' numbe s feported here exceed the number of active• employees at,any given point in time: For recent'research on 11 service benefits ofthe Living Wage, see Reich, Hall:and:Jaeobs (2003). Living, Wages: and Economic Performance The San Francisco Airport Model. ILE (IIR), UC'. Berkeley: [Available on -line. at http:/ %iir.li'erkeley.edu/livin«a/ See. also Howard Greenwich (1999) City of Berkeley Living: Wage Analysis b Howar' prepared _ y d Greenwich contract for the Cityof Berkeley�Department Finance; November 1999. 31 May 20,04 PROPOSED LIVING 'WAGE.- CITY OF SONOMA Page 5 of 9 3.2 Relationships -with Public Agencies The City of Sonoma ,is involved in various contractuaLrelationships with public agencies for protective services; at the'tme of writing we,are aware of three:' The first is a contract for police dispatch services with the Sonoma County.Sheriffs_Department which has been in effect for about• nine _years, th'e second is' a pending, contract, for law enforcement services with - the Sonoma County Sheriff s Department , and the third i`sTor fire:and.emergency medical dispatch services with the REDCOM Jont,Powers Authority. It was ascertained during the impactstudy for the: Sebastopol .Living Wage that employees working in these agencies are directly employedl by the County of Sonoma, and that they received wages and benefits above the proposed.living• Wage level. The proposed exemption of part-time firefighters implies that the Valley of the Moon Fire Protection District will not be affected by the Living. Wage "Ordinance.. 3.3 Grants / contracts with non- profit organizations In the 2002 /3 fiscal year<one grant. /contract exceeding, $75,000 was awarded. The Sonoma Valley Visitor's Bureau is a.membership °organization made up of more than 3OO�different businesses that serve visitors to. 'Sonoma Valley. The Bureau operates two visitor centers. They received $192;00.0' from the City for visitors' services and economic development activities. Due to the nature, of the grant, these employees of the Visitor's Center may effectively be regarded as contracted =out city employees. The Visitor's Center has 10 'Visitor Services Representative" positions that pay unde.rthe proposed living wage from threshol ndar ` ",ear 2003 we tha the e em 'loyees. Using payroll information p Yp P y Visitor's Center would have to raise their payroll expenses by approximately $24,500. 3.4 City Contracts City Contracts: In the 2002 /3 financial year, the .City let contracts of $10,000 ormore to at least sixteen organizations. Of these, two were: for construction, two for - services, and twelve for professional services. No ne of the contracts for services will result in wage and fiscal impacts. A. Services: In ,the 2002/3 Fiscal year the City let twelve: service contracts in excess of $10,000 for- a combined of at least $608,000 (some contracts specify a::minimum annual payment). The contracts included,professional services such as, auditing, engineering'and planning services, as well as landscaping and janitorial services. All of these contracts are exempt from or the=proposed ordinance; The reasons why these contractors are not affected °are os follows: o Four 1con tract6rs , already pay their employees m6r'e'than the proposed' wage level, o In three. cases, all employees of the.contractor devote less than 20% of their working time to they City Contract. 31 May 2004 PROPOSED LIVING WAGE - CITY OF SONOMA Page 6 of 9 o Two contractors employ fewer than, 6' people. o ` Three, contractors did not, provide information, but based on contractual information, we estimate that they would he `exempt based on the 20% mle. B. Construction: In the 2002 /,3 :financial year, two construction contracts for-.an amount greater than ;$ 10,000 were 1et. 'The City, of Sonoma .conducts most minor maintenance and repair work in- house,, and hence only relatively large construction projects are,bid out to, contractors. It.is assumed that in future all Hof ihesei contracts will be'sufficiently large Was to °q y g g g and/or fe r s egulation (the 11— Cal frm oa State Labor Code and/or federal DaviseB con A t). Hence the proposed living `wage' ordinance s'assumed to have no impact on construction contracts. 3.5 City Leaseholders' Currently eight organizations hcvU leases with the City of Sonoma. Leaseholders will only be covered by the proposed Living Wage Ordinance `if they have 25 employees or more,, and revenue of'$350,000 or more per, year: Other exemption conditions also apply. The current leaseholders are all exempt, from the - ordinance due� to number, of.employees and;the size, `of their- gross annual receipts. One' leaseholder; the Sonoma Valley Visitors. Bureau is subject "to the living "wage coverage by reason of its "se rvice contract agreement 3.6 City Franchisees Currently three organizations hold 'franchises with.the City of Sonoma. Franchisees will only be•covered.bythe proposed. Living Wage Ordinance if they have 25 employees .or more, and revenue of ',$350,000 or more per year. Other exemption conditions also apply. The result is that no, franchisees are likely' to be affected'by the proposed Living Wage. Ordinance, for the following reasons: 'o One franchisee already pays their employees more than the proposed living wage, level. o In two cases, :all employees of the franchisee devote less than 20% of their working time to the city franchise. 3.7 Miscellaneous The,Burliank Housing Development 1,Cor poration, proposes combining various'•. funding sources i order to, develop affordable housing units in the City of Sonoma. The: City Communitv,Development Agency is expected co_ ntribute more-than $100,000 to this d6 eloprnerit and hence this employer will be covered by the proposed Living Wage Ordinance. In an interview conducted,dur ng the preparation of the impact study for the Sebastopol Living Wage the Executive Director' of Burb_ ank Housing reported that most of their employees already earn more than the proposed living wage level. Th e:'Dl ettbr '.further indicated that Burbank-,Housing seeks to be an employer that pays living wages,, and it 'is In the version of t'his'report we estimated the impact of Living Wage eoveiage on Guerrero Janitorial: We • have since leamed'that- thi_ §.. , finn.employs fewer than 6 people. 3,1 May 2004 PROPOSEDLIVING WAGE - CITY OF,SONOMA Page 7 of 9 assumed that this city - financial assistant recipientvill not change their development plans if the Ordinance i's .implemented nor will they pass 'the additionaf costs on to the,City. 4. Aggregate Impacts of the proposed Living Wage ordinance Using the information presented in Section_ '3 (above), we are :able to estimate the aggregate impacts of the proposed •Living Wage ordinance. We provide several scenarios based on the assumptions- discussed-above,. This is shown in Table 2. Table 2: Aggregate Impacts ofthe Proposed City of Sononia;.LiuingWage. Coverage - Averagewage. Cost to employers Increase Cost per A as in proposed Benefiting:,. and health benefit • per year;(includes as %. of resident ordinance with: workers. increase per worker. per year employer -paid. taxes) Budget per year City, SVVB 17' $1,920 $ 36,800.00 '0.23 % $4.03 City, SVVB, EMT Paramedic ($14 20): 57' $2,090 $130,1. 00.00 0.82% $14:25 City, SVVB, EMT'/ Paramedic ($15.20),. 57` $2,270 $141,400.00 0.90 %0 1 $15.49 The estimates ind cateAhat 57 flow -wage; workers- Will, receive wage, leave and/or health • benefit increases worth an average of' p to $2,270 perworker.per .year under the proposed policy.. This will cost .employers a.tc tal of up to $14.1,400 per year`. These impacts will be felt exclusively by the .City and- profit agency. It is expected that most of the additional costs will be transferred.to. the City, given the close nature of the relationship between the City and the affected nor"- pro fit, and its relatively inflexible staffing, requirements. This represents .up to 0.9 % of the 200243 City'Op.erating Budget of over $J5 million, or up to $15.49 per resident-peryear: If the proposed ordinance is not applied to E1VITs.and Paramedics, then-it is estimated 17 low- wage workers will receive wage, leave and/or Health °benefit increases worth aifuverage of approximately °$I 920'per worker. per: year under, the proposed policy: The total cost to employers, which includes employer =paid taxes; will'Ile approxiniately$3.6,800.per year. This°represents 0.23% ofthe,total 20:02/3 Operating - Budget of the City and approximately $4.03 per year for. each of'the 9;128 resident's of the City Note'that ihe.following additio ial apply to these °estimates (1) We have assumed that the administrative (Mon and enforcement) costs of the Ordinance to the City; and of compliance with responsible bidder requirements by City Contractors,, are negligibl'e. The , City will incur some one -off costs to draft appropriate language for'xequests` forbids and contracts, and to establish appropriate procedures, as well as the, ongoing costs of implementing the complaints procedure. However, given the 9S ee Elmore Andrew " L'iving Wages Laws; Smarter Economic Development z Lower Than Expe-cted,Costs ". Brennan Center for Justice' bttp: % /v" , tarns /liVins wa�e/elmoreroort.htriil 31 May 2004 PROPOSED.LIVING WAGE - CITY OF SONOMA Page 8 of 9 - scale of the City }s contracting, these costs should be.relatively small, and arguably should be regarded as part of the.normal' costs of exercising appropriate;regulatory oversight in any contracting -out activity. Note also that the Ordinance is designed.so that the main burden,of monitoring and enforcement falls on workers and members the community. (2) 'The Living Wage Ordinance provides for aphase -in over a period of up to three years as existing contracts are renegotiated,, and covered 501(c)(3) nonprof is arenot required to corriply until 2007. According to City�staff, this provision does not affect the non- governmental. employer that is immediately affected by the ordinance the Sonoma Valley Vi°sitors.Bureau. (3) We, have notancluded estimates of the costs and benefits of extending Living Wage coverage to employees of potential future recipients of City leases, concessions franchises; or financial aid. It should be noted that recent research „suggests that extending living wage coverage to firms receiving,business assistance may result, n widespread, wage:increases for low - wa_ge workers. Tt.is =however unlikely that,any S'onorria.low= wage workers will be affected by this mechanism, given the thresholds :for coverage contained in the draft Ordinance only.C-ity.Financial Aid Recipients receivingmore than $1'00,0.00 in any twelve -month period.would be covered). Two. ernpl'oyers received grants in , excess of $100,000 from the Cityin fiscal year 2004 —the Sonorna Community .Center received $250;0-00 in Assistance and Sonoma Valley Hospital received $110;000. Since both_ actions will:have taken place prior to the effective date of the living wage ordinance, neither; =employer is impacted by its provisions: S. Conclusion From the analysis above, it is clear, that the proposed Living Wage Ordinance will.have a modest but tangible impact on the workers, firms and City of Sonoma. The relatvelymodest costs and benefits of 'the proposed Living Wage Ordinance are a consequence.of the fact that Sonoma is a small city with, a small. budget; therefore the ordinance will have, little economic 'impact. However,, some of the services that the City purchases, and that - it provides through the Visitor ' Center, do employ people, at a low wage who, will benefit,fr - ofif the ordinance. and P ramedics working for the City are covered by the proposed olio I these, group A si ificant, ro ortion of the estimated benefits and costs accrue because p p , p y f these; groups were not covered . under. the policy, the cost and benefits of the policy would be significantly :reduced. lo See- Neumark (2002).,How Zivirig Wage Laws Low -Wage. Workers and Low - Income Families:, Public Policy InsfitutewofCalifornia. [Available;online at w� w.ppic:org This research1as been the °subject.of considerable ,crificism for over - stating the effects of the Wage: see Brenner, Wicks- Lim,.and Pollin (2002), .Measuring the Impact of living Wage Laws.: A. Critical Appraisatof David,Neumark''s: How Living `Wage Laws Affect Low -Wage Workers and Low - Income Families. PERI, University of Massachusetts at Arnherst (Working • Paper Number 43). [Available -on= line: at =http / /www.umass.edu/peri/research html #lw] 31 May 2004 PROPOSED LIVING WAGE - CITY OF SONOMA Page 9 of 9 Notwithstanding this . , qualification, recent 'research shows that; Livdng Wage ordinances have improved economic development in the affected communities and,have costinuch less to implement than.mi analysts initially expected. In fact, a survey of cities andd counties with recently passed LiVing Wage ordinances found that .contract costs of the overall local budget increased by less than 0. 1 % in the years after the law was adopted.," For a relatively small-pn.ce, .the ordinance will bring an increase in:thb welfare of a small number of workers, arid a comin, ensurate improvement in, the: quality of city services.l most importantly, in ad opting the pro posed Livin Wage ordinance, the residents of the City of Sonoma through their elected .representatives, would be. .enhancing the position of the City as an economic actor committed to the protection ofthe livelihoods of workers. j Elmore, Andrew " Living, W ages Laws% Smarter Economic D pp.me Than Expected Costs". Brennan Center for Justice httb://www.brennancenter.6rg/.I)roe�ra s/living xka�jze,elmorereijort.htrnl • 12 For recent research on the service benefits of the Living 'W.,, - age,.,see Reich, ffall'znAjacobs (2003). Living Wages and Economic Performance: The,San Francisco Airport Model. ILE' Berkeley. [Available on-line at http://iir.berkeley:edu/livingwa:ge/] NO —2001 prepared by Samantha TePli:tzky UC.•Berkeley Institute for' Labor and Employment • Cit .of retaltima CONTRACTOR PURPOSE _ AMOUNT EXPIRATION 1 MV Transportation Inc Transit $45 °er ear 2 PPSC Piratransit $366 S per year _ 3 North Bay Landscape Management median mowing' $88 4 Keystone Tractor'S.eryice. _weed abatement. „ $11:7 5 - Dion's Downtown Towi towin 6 American Tow Service_ ,towm 7 Old Adobe Developmental ,clean-u . services_ 8 RMA Engineering and Mana ement waste water treatment 1610,200 9 Raintree carwash. Contracts excluded- --less than §10,000 - six employees. -all construction and pr,evaiLng wage =a11 consulting ,and pro:f'ess•, Tonal. servir,es ti A Report on the 'benefits and Impacts of a Living image Ordinance on the�'Cities of Santa Rosa and Petaluma August 2002' Sa.diantha Teplitzky, M.A. A Publication. of the VC Berkeley Center: for'Labor R esearc h and Ed'ucatioiu And the UC Institute for Labor and. Employment Y Sonvma; County and the Living Wage: Page 28' A Stud3rof the Impact ofa Living Wage Ordinance on the Cities of'Santa Rosa and Petaluma found that the majority of Workers lack- health care coverage throu their employers at the; Marketplace and Town Center. Table 6 Santa. Rosa Marketplace.and Santa .Rosa Town Center Jobs Created Store Cate gory'by 'Number of Number of Percent Entry-level Average- size Stores Jobs Part-Twe Wage Wage J66S ,5 -10 Employees 6 67%t $6 92 $711 1 - 50: 11 269' '60% $7.24 $7.97 51+ kmployees 6 971 approx. 50- $8.79 N/A. 60% 1286 23 0.51 Source: interviews with, s fore managers and employees, Oct. 200 Summary of Santa Rosa. Workers employed by city 'contractors and in city-subsidized projects, along with temporary city employees, comprise a small proportion of a much larger pool.. of low- wage workers. who face the high-costs of living in Sonoma County. The majority of workers who would be covered by the ordinance fall into Che broau. categpr service sector Workers, particularly retail trade and business services. These ybf jobs are among fastest growing - and, lowest paid - in the region and the ,,ptionoverall,(see Table 1).. In addition, the majority of such jobs are held by,adu not by teenagers as some ofminiffWn,and Living Wage increases maintain. The proposed Living Wage ordinance could assist approximately 4 low-wage workers em I d dir ectly by the city of Santa: Rosa or its contractors. Provisions relate o_ economic p oye - . irec d t subsidies would only apply to -future recipients, "therefore -it is difficult y to Predict the full scope of the ordinance. B. Petaluma Service Contracts Petaluma is one-third as, large as Santa Rosa, and consequently employs -fewer contracted m - of whom. were paid for professional services at billable rates .in . mo st, e ra of $50-5150 per hour. Table 7 outlines the' distribution of employees according to th monetary c i, t�. y amount of the contr All contracts were the: of the Petaluma City Clerk's. office. 41 Holly `Sklar, Laryssa MykytA Wefald Raise the Floor: Wages and Policies That 116rk, for All of Us, New York Ms'.Foundatidnfor Women, 2001 pp . 62-63 Sonom County and the Living �%V ;Page 29 A Saud -of the Impact of a Liv;<ng. Wage..Ordi:nance on the Cities of Santa Rosa and Petaluma Table 7: Distribution of.Petaluma Service Contracts Annual $ Paid # of em�oyers or contractors $1,0,000 •- $2'4;000. 5 $25 - $99;999 1 $100;000.,. 3 Total 9 The Living Wage ordinance- would cover 9 contractors who em 1'0 100 workers. p � y almost Approximately 75 employees would.be,affected by a`wage of $15. The contrac ..are.,distributed.... among several industries including transit 'landscaping, maintenance. and waste management. Table 8: City of Petaluma Service Contracts gt� of Petaluma Service Contracts TOTAL 9 10.8 97` 66% 64 73% 71 on- Profit Service Contracto The City of Petaluma s Community ,Development,.Commission• funds several. non - profits, most of which deal with Housing' Administration, Projects and. Programs. For the 2001 -02 Fiscal Year, the City has allotted ,$4,474100 for Homelessness preventi and shelter services, J Programs, Homeownership. Transitional Housing, Fa Rental Projects Senior Fro ects and P.ro ram The funds were1 distrib u ed among m Revitalizatlon Programs, and Administration costs. g p ofit housing agencies employing an undetermined number of workers. As stafe_ d ;above, Non -Profit Sector employees earn an average of $7.6'6 per year. _ r -I tvumoer of .Average Total Percent' Number Perce 't Number Contract Type Contracting Size Number Paid Paid Paid Paid Firms: r - o Finn: F o . fi!ork,.rs' f < $11r�0 � $ 12:30. < $15.00 < $15.00 Administrative and Support $ ervices ' Landscape Services 2 6 •12 o 7,1U O 9 0 770 0, 9. Other "Services to Bwldin s & Dwellings 8 $ 1 . 4 4 65 /0 Waste Management and RemediAon Service I; SO -50. 71% 3 36 73% 77% 3 39 Transportation Support P pp 2 8 16 55% 9 66 % 11 Repair and Maintenance 3' 5 15 55 %0 8 66 % 10 TOTAL 9 10.8 97` 66% 64 73% 71 on- Profit Service Contracto The City of Petaluma s Community ,Development,.Commission• funds several. non - profits, most of which deal with Housing' Administration, Projects and. Programs. For the 2001 -02 Fiscal Year, the City has allotted ,$4,474100 for Homelessness preventi and shelter services, J Programs, Homeownership. Transitional Housing, Fa Rental Projects Senior Fro ects and P.ro ram The funds were1 distrib u ed among m Revitalizatlon Programs, and Administration costs. g p ofit housing agencies employing an undetermined number of workers. As stafe_ d ;above, Non -Profit Sector employees earn an average of $7.6'6 per year. _ r -I Sonoma CoUnty'And-the Living Wag: Page 30 A Study of the Impact of a Living Wage Ordinance on the Cities of Santa Rosa and Petaluma Redevelopment /Economic Development Projects The Petaluma Factory Outlet - Village project, began in 1989. The City of Petaluma entered into an agreement with the. Chelsea and develo the site. A - up o rezone T report, issued' by the Chelsea Group in 11950 estimated that the city would benefit -fit fro $700,000 in additional 'sa I les tax revenue ($4,00, 000 - from the outlet ' mall and $300,000 from the: ;adjoining River Oaks ), additional $500.000 in development propert ,y tax revenue; all which would be'allotted to the - I .PetalumaRedevelopmen Agency until and after 1904 would be shared, equally 'between the Agency and local schools The re pbrt also predicted $30,000 in'addilional community ayr6llin th6fornf of an 4 p estimated 1,�.00 �new,jobs described as "high­' paying, management" positions offering en. average: of $20, per year. The Chelsea Group also agreed to. pay $1,20 . 0,!.000 in traffic mitigation'fees to,help construct a new overpass and interchange near the site Although `the; Outlet Village :did not, receive , direct subsidies from the t� . city, the indirect subsidies, as well as general approval, act in a simil ar m , anner, - the y end, a, message . about the desirable form of development. 'The City's,pamiss - on was con upo ii the developer's contribution to traffic mitigation n, Adhepehce to, environmental. codes . and promises to :ffin061 sho ing at the Outlet Village illage, into shopping downtown, but no consideration & was given `to the nature of jobs that would. be. by the project.. The Ou tlet V houses; about 47 stores,- and employs approximately 270 workers. The sL`Ures r ai e in. *gize:. froiii 5 to a7Qout. 30 employees, A percent of whom are part4inie with an average entry-level wage of $8.13 �per hour. In addition, 8 percent I of employees represented by the survey Were over '18'years- of I age. Table 9 high lights the resul . of our survey: Table , 9-i Petal'um a Factary'.0utlet Pillage Jobs Created Number of ..Percent Percent Entry level Average Wage Stores' Full-Time Part-Titne Wage Surveyed Jobs Jobs 27 34% "66% $8. $9.59 Source; 'Interviews with!slorenianagers and employees, Oct. 2001. It shQuld be noted that the omission . of 'low.-paid food, service workers froin the Petaluma Factory Outlet survey has. imuged,fts aVeragd• Wages, to be slightly higherihan those of f the $4ptaRosa shopping centers.- Petalufiza,Sum Mary.- The: Living Wage ordinance could,affect appro ately 75 low-wage -' I I proposed xim wor ers ,currently. employ, ed City contracts. 'T he he pTovisions of the Ordinance which apply to economic development subsidies and assistance would have a larger finpact on future pro 'within the 'Petaluma redevelopment -development zones. Living Wage Laws: Expanding Nationwide_ In one of the ,most pronounced local. policy trends in ;recent years, scores of cities 'and counties across the''Utiited. States. =mote than one.hundred =as of July ZQO3 ,have adopted local. "living wage" laws. Under these laws, employers receiving city contracts or'city:bminess subsidies- , rnust pay full 6,me,'workers a wage sufficient to support themselves and their families at a subsistence level. The policy goals driving these initiatives —that hard work should be rewarded with adequate pay and benefits, and that taxpayer dollars should ,not support jobs' that leave workers and families- in poverty " —have found broad support among local lawmakers and' the public. Questions. Raised About Livi ng Wage Laws In assessing the value of living wage laws as policy tools, it is impor- tant to understand their ,costs and benefits for communities. Especially in, a time :of budget. deficits and.job losses, local policy - makers have. had twokey questions about these laws: • .Will they increase the costs of, ci ty,con tracts? • Will they limit the ability of.cities to use business subsidies to ..increase, the'.numb'er of;good jobs in their communities? To answer these .questions, we; asked; local government officials in; communities: with living wage laws to examine the; impact of these: laws after they were implemented. We have collected: their °findings in this report:. Significantly,' local government' officials found: The living wage laws °analyzed,' in. this report apply, to jobs generated under two- -types of !city programs'? City Contracts cities :(ind other local lovernments) employ private contractors to provide a range of services for the government and the, public. 'Living-Wage laws regwre.fi- th' perform city service contracts to pay•their workers a living wage'`— generally set between $8 and`'$17per hour —and to. provide health benefits:. City Business Subsidies In'order�to attract orretain lobs iwikeir communities some cities offer taxpayerJunded business subsidies usually in the form of grants, tax abatements or below- market bonds4 or loan s— to:employers thafpledge•to or retain` facilities -in the community. Living wage laws require employers receiving city business subsidies to pay their workers a living wage and to provide health benefits. • Only small increases in city contract costs as a percentage of ,city budgets—and _less -than initially expected. • No significant adverse effects on city business subsidy progras — in some cases such programs °were actually strengthened. By collecting the actual findings•.of government officials in commu nities that have implemented living wage laws, this °report provide; detailed •information that may be valuable to other communitie: considering whether to enact similar laws._, • City Contra Lower Than Expected :Costs -For, city Contracts, local officials- reported, that cost increases have. been small and less 'than initially expected.. For most cities, contract costs increased - less than 0.1 %o' of the overall local budget in the years after'a living, wage law`was adopted'. See Table 1, at left. • 'Generally, in each city a few contracts; involving large numbers of low -wage workers —for example, contracts ,for janitorial or security guard, services — increased; substantially in price. For these few contracts, the contracting businesses submitted high- er bids, or negotiated for higher °prices, to perform'the city. 'work once the living wage requirement took effect., But the officials interviewed found thatmost contracts increased, little, if any, in cost. In many cases, contracting employers were reported to have absorbed,,much or all of'the ,additional labor costs without demanding' increased funds" , ,from the cities. Living wage requirements encouraged some local;governments to institute competitive bidding for, contracts that had not been put out for - in'many years, reportedly savings for the cities., In localities that extended, Giving wage 'requitements to: human services such as home: healfhtaare.or child care'services,. cost increases were slightly larger- ranging from 0:3 to 2.79 %o of local human services 'budgets — although still .quite moderate overall. See Table 2, above. These increased costs reflect both - the high concentrations of low wages among city- contracted' caregivers, acid the fact that cities have sometimes agreed to automatically, ,pay for some or all of the increased wage costs for such contracts because of the vital nature of human services and_the budgetary con - straints faced by the non - profit agencies that often provide these services. E City 'b Subsidies: Smarter Econo , is Development For city business subsidy programs, local officials reported that they- could _still attract desed _i `business development, and that living wage.'laws often reinforced smarter economic develop ment; focused on creating, higher ` quality, jobs . • Local. officials reported that only in, a very few instances did living wage requirement's that applied to business subsidy pro- grams,limit their ability to attract desirable employers to their communities. See Table 3, following page. •. "Many business subsidy programs: already emphasized attracting higher- wagelobs„ so,living'wage laws effectively formalized and reinforced existing practices. Some local officials reported that a living wage requirement increased public- support for their business subsidy programs by assuring,-taxpayers that'public.funds would be spent to .attract only high wage jobs: ; • Relatively few local Offitials� reported ' using, their business ; subsidy programs' to attract jobs in low -wage sectors such as retail, since jobs:'are less beneficial to local residents and ;the economy than higher paying, jobs. The few that did use subsidies ? to. attract retaitJobs, reported that they were still generally able, to attract such ern loyers, although. some cities renegotiated subsidy packages or chose to exempt some busi nesses,from the living wage.requirement. A Guide for Local Policy makers Local governments in ,their findings collected in this study, con- sistently report that. living'wage• laws cause only small increases in city. contract ,costs, and do not interfere with city business subsidy programs.. This snapshot of the actual effects, of fully implemented living, wage laws in a range of communities provides useful guid- ance; for policymakers considering adopting such measures. 4 Table 3': Im.pact Laws on City Business Subsidy Programs, 2001 Number of Projects with Number of Projects Locality Type of Projects' Living Wage Cgriditior s Cancelled Because of Each Year Living Wage Law Duluth, Ml. Health iCare, Technology 2 0 Los Angeles, CA !Mixed Use 3 0 Minneapolis, MN, Technology 6 -7 ". 0 Oakland', CA Mixed use I 0 San Antonio,TX Technoloky, Finance, • 4 ' 0 . Manufacturing San'Frincisco,CA Mixed use I I 761edo, OH' Industrial n/a . 6 Warren,.Ml Industrial,, Manufacturing 4 -6 .0 Ypsilanti;,Ml Industrial, ` . 1 0 Ypsilanti' Township, MI Technology, Industrial 5 0 *` The ten .cities'in'this table, represent all of those nationally that had had a living- wage•requiremenf- fourecipients of city business subsidies in force for at least one year as of 2001 and that were able to report to us the impact of those:repirements on their economic development programs. The Study The information to this 'report was provided by local officials in, twenty cities and counties -the ,entire; set of cities' and, counties that, by ate 2001, both a) had•a living wage law that had been in force for at least one year, and b), had the'administrative capacity to produce cost. impact •estimates „formal internal evaluations, or ,her' empirical ,assessments of the effects of their laws. Collecting such, information from larger cities •like San Francisco, CA and San Antonio, TX medium -sized ,cities like Oakland, CA, and smaller' cities likeMadison, Wl and'Warren, MI,'the,study reflects the expe- riences of a broad range of communities °with living °wage laws: BRENN ; ENTER FOR JUSTI "CE hSCHOOL OF LAW AT:NYL The Brennan Center's 'Economic justice ;Proj'e`ct Good jobs�ate'essential to the long- term .viabiliry`oFour communities and our economy.• The Brennan Center's Economic Justice. Project works with coalitions of stakeholders to create, regional solutions to problems of'job quality, a ad:economic competitiveness., We also work ata,broader level to help rebuild fhe.core job and safety- nevstandards that have been dismantled over the past three decades. We these, efforts to combat growing inequality with. a unique cotribina- tion oftresearch,,aegal assistance, and policyanalysis. Brennan Center for Justice 1'61 Avenue of the Americas, 12ih'Floor New York, New York 1001.3 212 9- 98.6730 fax 21'2;99.5'4550 For more information, contact Paul Sonn at paul.sonn9nyu.edu A copy of the complete report i.s available on the Brennan' Center's website at http: / /www bfennance-hte.r ;brg. • ince its establishment in July 2000 the University of California Iristi- tute for Labor and Employment (ILE) has do ne. much to revitalize academic research, education, and service pro- grams focusing on. the s'tate's labor force. °The ILE builds on the work. of the Institutes of Industrial Relations (IIRs) -at UC, Berkeley and UCLA,, es shed,in 1.945; and on their respec- Centers for Labor. 'Research and Education. As a statewide, multicam- pus research program, the ILE supports and promotes labor and employment reI- . search throughout the entire UC system. The ILE's mission is to study and find solutions for problems of Ialior ;and` employment in California and. the nation. The Institute, also - serves' as a unique bridge between the U versty and the state's labor commu- nity by facilitating , ary and collaborative research opportu- nities for faculty, professional re- searchers, postdoctoral scholars,'and students. The Institute provides fund- ing support for faculty and students to participate in research that will Jn- form the University, policymakers,, the labor movement, and others of important trends and changes rel- evant to the state's workforce. ...Established by an act of the :Qa'liforn "ia State Legislature, the ILE: was developed tlrou,gh an in tensive planning process carried, out by a,15- person Transition Team appointed by the University of California's Office of the President (UCQP). The team, led by ILE in- 'team co directors Jim Lincoln.and Paul Ong (then ,Dir,ectors of the IIRs at UC Berkeley and UCLA, respec- tively) met frequently during the second . half of the year 2000 and the early part of 2001 to craft: a' governance structure for the•new,Institute:and to adVrise UCOP on. the selection of the Institute's first Director. The team also developed a te- search and fellowship program and .issued the ILE's first Request for Pro posals , in the fall of 2000, funding a, wide variety of faculty research Please see ILE, page 2 ME i n Attu e ti t me ot Age projects as well as graduate, student fellowships across the U;C system._ 'Subsequent 'RFPs were is's.ued in ;spring 2001 and spring 2002. In early 20.01., Ruth M'lkrian, a UCLA Professor of Sociology whose re- search career has focused on labor and workplace issues and - who calso served on the Transition Team, was;appointed as ILE.Director. Michael Reich; a UC Berkeley Professor of Economics, was appointed as the IL.E's Research Chair shortly afterward, and the Tran- sition' Team was .replaced by'a new, smaller body, the eight- ILE Governing Council, .which makes all, m;aj'or , policy and budget- decisions for the Instituter The Governing 'Council also estab- lished a Research Advisory Board,. which makes funding decisions for the ILE's grants and fellowship pro- grams. I.n July 200 1,, the UCOP a-p.- pointed the ILE's. Advisory Board, which is chaired by Profestsor- Manuel Pastor. of UC Santa. Cruz. The Advisory Board, which, •meets twice a year, is comprised of faculty representatives from all UC cam- puses as well as a wide,range of com- munity representatives from around the state. Peter Olney, the ILE's Associate Di- rector joined the organzationin;the fall of 2001. He holds an MBA from UCLA and has spentrmo.st; of his caree in organized 'labor. Additional staff came on board. during thesummer And fall of 2061,1h'- eluding Margaret; Leal - Sotelo, Chief of Staff, and Neal Sacharow, Cominu- y. nications Director: Peter Olney On March 9, 2001, the ILE ;held its first major .conference at UCLA, on "The New Economy and Uriion Re- sponses." The format of this gathering was somewhat unconventional..It was. structured around presentations by experts, from around the country who have spent their research careers in the field of labor and employment,, in some cases working.in`organzatons with missions somewhat akin to.that of the ILE. The speakers were asked to give programmatic talks about the kinds of work people,in the labor and employme"nt.field should be: doing in the coming years. This was,'in -short, an in- stitution - building conference that built on the experiei c&of indivi'duals,and.organi- zation"s ;from around the United. -States who have:..been active in labor policy re- search. be ff Fs research agenda ft cores' On: three ke areas, the new economy,' C .9 c. new 0; :and new w.orkiYrs in G-dZfOrnim On this basis, the ILE 7d eveloped a research. ;agenda that focuses on three key areas: the "new econ_omy," new labor,; and - new workers in Cali fornia-. We are especially :inter- ested in supporting research on e nomic policy, that;can help forge a ne social contract appropriate 'to the re- cent technological and , organ zational transformations in the state's work- places; the: current °revitalization of the organized Tabor _movement,. which is. especially concentrated: in California; and. the, role ,of immigrant workers, who make up a,large. And,growing pro - portion of the state's workforce. Al- though the ILE supports a wide range of research on labor and employment topics, these three'. areas are of particu- lar:importance for us. The ILE has sought to build- truly .statewide .capacity through outreach to alltheU.C.campuses and the communities surrounding them., :ILE- led. roundtables bringingtogether faculty, students, labor leaders, policy, makers, and community representatives were held iri San Diego. and Sacramento; 'in the fall .of 2001, and more are planned for the com= ing, months. The ILE''s work both reflects and contributes to th-`e labor rnove.ment's "role as a California ` trendsetter for the nation. Building bridges between the academy and the world of labor, with a wide .array of research, ed- ucaton, and service activities, the . ILE is an important resource for t' state :and one that. will continue � _ grow -in visibility: and capacity ,in the years to, come. r.,adgates. of the first entirely- S apish -lan ua e labor leader- p g g- ship training in the United States re- ceived, their diplomas on March 8 at UCLA. As part of a pioneering, series of programs funded by the ILE and offered by the UCLA Labor Center, "El Colegio de Liderazgo Laboral "pro moted leadership - development among union workers throughout the greater, Los Angeles,.regon. Twenty -six immigrant workers; rep, resenting janitors, 'hotel workers, gar rnentworkers, nursing home and health, care workers, construction workers, and security guards,participatedinthe weeklong, in- residence program.. They were welcomed to, the campus b UCLA Vice Chancellor for Re 'search Roberto Peccei, Labor .Center, Direc- tor bent Wong,. and Ruth. Milkman, ector :of the ILE and the UCLA, titute of Industrial Relations. "We are very pleased that our Institute is able, to -open the doors of UCLA, with' ;its many resources, to all of you," Milk- man said. "I hope this is the first' of many teaching and learning exchanges, between your communities and those of ,us here in the University." Spanish- speaking immigrant work- ers make up a large proportion o-f California's workforce, and many are turning to organized labor for assis- tance in addressing workplace issues. A. new' generation of immigrant labor leaders is emerging, and it is precisely this group that the Colegio -is designed. to serve. Dent Wong believes that part cipa- tion in the California,Uruoii- Leadership School's programs provides a very spe- opportunity. "It brings together erienced educators and a broad . spectrum�of union members to address the big picture issues that individual local unions normally don't have sufficient time °to explore "' he noted. Class members °were inspired by their .experiences. They con timed the work of the Colegio into, the evenings with - critical. reviews of each day's activities, . small =group discussions and film screenings. Many of the -workers said the skills develop- inent training they received, in- cluding instruction in public - speaking, effective one -on -one .conimuriication, and details on how to conduct ,meet- ings; would be useful not only at work but, in other aspects of their lives as well. "It `vas exciting 'to' learn about glo- balization,and its impact on us As im- migrants," said Aaron Gonzalez of Sei vice Employees International Union Local 1'877, which represents Los An geles'janitors. "I will definitely take this information back to ri?yunion, as well as to my community." "It.. exceeded our most ambitiou's expectations," said Project Director Stephanie Arellano, who supervised the program. "Participants were challenged to shift their focus from wages and ben- efits, and to adopt a. broader vision. They` left with a new understanding of their roles in their unions, their communi- 'ties and contemporary history," 'The California Union Leadership. School will offer additional educa- tional programs through the. UCLA and 'UC, Berkeley Laboi'-Centers. 0 - Colegio Director Stephanie Arellano 0 n February 22, 2002, . faculty and ,students from several UC campuses joined labor and community activists; , in Riverside for an- ILE funded research, conference on the -,hv ing wage - movement , Organized by UC. Riverside:ecoiiornist David'Fairris,, the gathering drew researchers from:across the state :and: beyond.. Living wage�.orchnance-s, require , d'e- s ignated :employers, usually 'those , re ceivi"ng contracts :and /or economic development, subsidies frorii local gov-. ernrnent agencies, to pay wages above. those required by federal and state minimum wage laws: Since Baltimore pa;s'sed a path - breaking living wage ordinance in 1994, dozens of - communities nation' id`e including° several in California, have enacted similar, ordinances. The living wage movement is rooted.in coalitions Stephanie Luce of the Labor Center at the University,ofMas- sachusetts; Amherst, began the day with a keynote presentation titled, "The Living Graduate Re' search COi1 iD'rence continued from p.1 to Milkman's presentation, the: open- ing plenary, titled "The New Labor Movement:' Perspectives from the Field also featiured presentations from Amy Dean x from the South _ Bay Central Labor Council and Raahi Reddy of the Ser- vice Employees4r% Amy Dean ternational Union: "What I most liked about the conference wasthe e small intimate at- rnosphere and the wonderful choice Raahi Reddy of" speakers," one. student,.said ' T appreciated the mterdis- ciphnary' nature of the gathering;" said another. `71iis `cross-pollination' of 'stu- dents with :common issues of concern is an important contribution of the ILE', and the focus on joining academ- ics with activism injected an exciting, inclusive energy" The interdisciplinary. conference included fifteen additional sessions in which- 50.,gradua €e students.-from allover the VC system •presented re- search papers from their ILE- funded projects. The Bess on.topics included; Gender :and Labor, :Labor and Political Discourse, Migration and lUage Structure n and the U. Labor and,Edu- cation, Case Studies of Key Sectors in Los Angeles, White Collar `Work and Its Discontents, Labor - and Economic Policy, and Labor and Politics in His- torical Perspective. Faculty °-members from around the state served as � discussants. They, in= of commmunity groups, faith -based or- ganizations,, and' labor unions commit- ted to addressing the problems of the working poor. Orr "From the stand- dint of the labor a�z q s f econoirust, " confer- �} %N ence orgaruzer,Fairris Y noted, "livirg'wages Are;of interest because they provide a vehicle Da,vid`Fa'irris. -to study employment .i mpacts and other , related consequences of raising the minim wage.by align fi- cant. amount." Wage Moye.'ment and Questions f0l. Researchers." Conference presentations and discussions explored the 'impact of living wage ordinances • On workers, firms, and ,local govern= ments The present- t, ers included Michael'' Reich, ILE Research Chair and Professor of Economics at UC Be.rkeley'Davi,d Runsten, aresearcher. David Runsten at thee. UCLA School. of Public_Policy and .Social; Research; and. Richard Sander, UCLA. Professor of Law. In a lively series of discussions, con - ference participants identified a host of research- challenges presented by living wage laws. Do living wage ordi- nances eliminate jobs as some oppo- nents have alleged ?: Do 'they.lead em- Please.see Living Wage page cluded Abel Val'eni uela (Urban Plan- ning and Chicano S'tidies, UCLA); Dacia Frank (American 'Studies, UCSC); Michael Burawoy (Sociol- ogy, UCB) Judy Stepan- Norris (So- ciology, UCI); David Fairris (Eco- nomics,,, UCR),; Margaret Weir (Soci- ology and Political Science,UCB); Edna Bonaeich (Sociology, UCR) Paul;Frymer (S;ociology UCS.D) Maniiet Pastor .(Latino and. Latin. American. Studies, UCSC); Stuart. Tannock (Education, UCB); Gilbert: Go;n'zalez (Chica Studies UCI); Peter- Evans (Sociology, UC,B); Nelson Lichte stein Jjistory, UCSB); and Carol Zabin' (Labor Cen ter, UCB), The ILE,`plans to convene simila conferences; for graduate students in future years; ®' he ILE will release a detailed re pbrt on "The .State of California Labor "(SCL) in the .fall of 2002. "This� will be a unique examination of key, :issues facing the California workforce;" I-LE Director Ruth Milkman noted'. "The.SCL will be an important new re- source for academics, policymakers, labor .organizations, and community groups as well as the general public." The.2002 report will include. analy sis of newly collected data from an. ILE - sponsored statewide sample sur- vey on employment practices and worker attitudes about a range of is sues: It. will also include the results of the. 2001 'Union Census, a data co.l lection:effort on. in the state (on which.no data have been collected since 1987), an ILE project currently underwayin,partnership with California Department of Indus •, trial Relations The 2002 SCL -will ini clude,chapters authoredby ZLE- affiliated scholars on the; following topics: Job Quality and; Economic Growth This analysis will focus on. the quality of jobs in the state,, analyzing° the, characteristics of jobs; added to the' state's workforce during the period of economic expaision.from 1992- 2000, particularly compared with previous periodsnof economic growth. This will, include a comparison between North- ern and Southern Califo major metropolitan areas. Employment Practices This, chapter will. - analyze newly col- lected data from the_ 2001 ILE Cali - fornia Workforce :Survey to employment practices. and public at- titudes on a. range of labor- related public policy issues, based: on a sample survey of Californians. he ILE's new postdoctoral fe1- 1'owship program recently com- p'leied its first round of competition. The program, designed for recent Ph.D.s, will support anew generation of scholars engaged in research on issues of labor 'and employment. Each year. the program, sponsors two postdoctoral fellows one at. UCLA and. one at UC Berkeley,. ILE Fellows are selectedi'on a com- petidve basis and awarded an.ai nual stipend of $45,50.0 (plus 'benefits) to gether, with a - $3,000 research,, fund for the:one- yearprogram,.,Fellows are free of teaching and other adminis, trative duties but are expected - . par- Ph.D. in Economics in. May 2002 ;from the University of Chicago and John Logan,, who holds a 200'0' Ph.D; in History from UC Davis andis cur- gently' a lecturer in Industrial Rela- ti'ons .at the. London School of Eco;- nomics and Political,.Science. Dube will be at. UC - Berkeley.�and :Logan at, UCLA. Dube is', a labor economiisPt who , wrote his dissertation on ``.New, I:a- bor Market: Institutions and .the; Dis= tribution of Income ". His topic, for they postdoctoral: year is; . - Qmmu nity -Based Organizing The Scope of Collaboration Between <.the Labor: Movement.'and Ind'ep.en'dent Worker ti ate in ILE conferences and pro= Centers " s during the ,fellowship yeah. Logan is ,a historian -whose "'work w In.. 2002 -03', the fellows will' be spans a range_ of issues ` rn legal and' Arindrajit Dube, who will receive ;a labor''history. He has pubhshecl, sev Union Density in California This chapter will present a detailed portrait of the state's union mem- bership, analyzing union density by industry, region, and for various de- mographic groups, and comparing California to the U.S. Labor Relations Developments Recent labor relations developments, including union representation elec- tions, major collective bargaining agreements, and other noteworthy data on labor relations in California will be analyzed here. .Labor Law Enforcement This chapter will provide .a historical overview of California's labor legisla- tion in such areas as wages and hours, 'Workers' compensation, and health and safety legislation, with a focus on the recent history of labor law enforce— ment in the state. eral articles in industrial relations journals on employer opposition to unionization in the U.S., Canada,, and the =Ulf, and has also written; on, the ;issue of striker replacements. His topic for the postdoctoral' -,year is "Using Public Policy to Revital- ize the Right to Organize: A Cali- fornia Case Study." The ILE Postdoctoral Fellowship Program was established to encourage highly quahf ed individuals to pursue scholarly research on labor and employ- ment issues in an interdisciplinary : set- - ting. At each. campus, Fellows have ac- cess to the :full range of university re- sources (compu, ter, faculty, libraries, etc.) and work with an ILE designated faculty -mentor in an envii-onrnent that fosters interdisciplinary learning and collaborative research. ® T he unionization of homecare workers in massive'numbers is one of the proudest achievements of the California labor movement in the 1990s. In Los Angeles alone; 74,00:0 homecare workers, who feed, bathe, and clean.for elderly, 'and di'sabled.per- sons, unionized in 1,99,9 in the ,single. largest organizing victory- for : the la- bor movement. since 1.937. These 10 w'-wage, largely :female.: and, minor- ity workers are -now members of the Service Employees International. Union (SEIU). A new ILE- funded study by economist Candace Howes of Con- necticut College and Laura Reif, a faculty member at`UC`San Francisco, analyzes the ways in which, the homecare occupation -has been trans- formed by,,impr wages acid eon ditions, thanks. largely to unioniza- tion and living wage policies. The high turnover levels that were once typical of the occupation have de creased significantly and this stabi- lization process has in turn led to en hanced quality of care for .clients+ and A n ILE R esource : The UC J R Library he ILE has provided new re sources to enhance the excellent library housed at the,UC Berkeley .In stitute of Industrial.Relations. Under' the supervision of Llbrar.y Director Terence K. Huwe, this facility has been an important-,source of research support for many decades, serving lab or researchefs on and.neattheBef- keleycampus. With the expa`nsion-of its electronic and Web: = based ,re- sources, the: U.CB° IIR library ; i's in creasingly able to serve as a resource for the state of California and beyond. Please iee- Library;, page 7' to improved living standards for homecare workers themselves. This research was showcased in- Fresno at the Febr -uary 7 "Quality Homecare,Conference, co- sponsored by the ILE. More than 150 participants came..together to discuss the ; policy is- sues surrounding homecare work. Three stakeholder groups were repre rented: unions, disability and senior consumer organizations, and the county public authorities who are the employers of record. Elected officials in attendance included Cahforriia As- semblywoman Dion Aroner, `Susan. Anderson and Bob Waterston from the Fresno County..Board of Supervisors, and Henry P'erea, President of the Fresno City Council. The conference, organized by Loretta Stevens, Homecare Coordina- tor for SEIU's Western Region,. UC Berkeley Labor Center Director Carol Zabin,, UCLA .Labor Center Project Director Linda .DAo, and others from the ILE Homecare Working Group, Was a highly effective forum "for dis seminating .ILE research results to the commurd ty 'In addition'to the Ho Reif findings, presentations in one by UCLA Urban. Planning: profes- sor Jackie Leavitt, who shared the re- sults of her :ILE - funded participatory research on Los Angeles' homecare workers' housing;, transportation, and employme training needs. As .Zabn explained, participatory re- search has numerous advantages. In a project she is coordinating on the labor market conditions for homecare work - ers, 'in Alameda County, workers them -' selves helped to design the survey in- strument;�and to .conduct interviews. "You getvery high quality`data this way," Zabin said. "Not only arethe- questions sharper, but, respondents tend ,to give more:accurate answers because -of their built -in trust for the questioners. "' This was the -first -ever forum bring- ing together homecare researchers with key,stakeholder:groups.m the corn nity and in the labor movement. It emplifies the potential for fruitful ex- change between 'researchers, activists, and policymakers, that. the ILE is de- signed to facilitate. I workers for those #Ilem "educated atlow y employed er wages, a phenomenon sometimes called "la- bor-la'bor substitution "? What impacts do economic downturns have on the passage of living wage ordin- atios? These are among the questions the re- searchers present at the conference are investigating. The mix of different disciplines and experiences represented .at the conference made for a dynamic event: "It's exciting , to see academic. 'atten- tion drawn away'from the iv.ory,tower. and theories and toward the xea_l world;' Fairris said. He plans to : tinue to build -a s tatewide research community - on th& living wage" ques- tion and to com ile' an;edited volume on the topic. The library specializes in materials,on labor employment, and industrial, vela - tions and maintains a print collection of m`o_re than 70;000 volumes. Thaii'ks to interlibrary loan, these materials are, available- not only to local researchers but to scholars throughout the .state of C'aliforni'a and beyond. The library also hosts public exhibitions of labor art . and ±photography and offers regular train- : ing, sessions to interested, researchers Its Web site offers, a wide variety of'„ 'research resources and, with II E sup port, is currently expan&ftgthat,.com ponent of its work. Please visit the site , at http: / /fir.berkele-y.edu /library.. An important priority for the library, staff is providing reference services' by telephone and e -mail to researchers throughout the state. To contact a ref ,ce librarian atthe UCB IIR library, Tease call (510)642­1705 or e -mail 4 t @socrates.berkeleyedu. The ILE is ` in the process conside'rihga research '- - ' - 'nd fellowshios for funding. in the 200243 . 1. V grantsa academic year. This!is the third round' of competition for such may involve exploratory research on topics that have ,riot been extensively istudied,' recent years; they may be analytical,. they -may be, quan' qualitative th te 'may be concerned v 6A cy design ­A Applications for. prqj'ecrs on any labor, and ? y ign an appraisal: topic will be seriously consi6ered. but the ;Institute 'al cons glye - speci sidera-don. to high - quality re- search bintly �y .Proposals that have been developedj by .university faculty and labor organizations commuhit -based organizatfon's, or. other policy organizations that-.are Working to improve the social and economic well-being of California's working families: ,Proposals will be reviewed by the ILEs eight- member Research Adv isory Bpard. W oil J , M OR __ Institute ute for !Labor and Employment. Uftiversity-of'California UCLA Box 951478 Los Angeles,,CA 900r954478 Non-Profit Organization U. I S1. Pottage PAID U..C.L.A. • ' diires proce For �,apFihcatioricovershe-,ets�.budaetworksh ca eet5,, mpus and additional information, including a list of prey i0ifs,grantees, consult d Web site 2athttp://,w,ww. cop.-edu/jle; `T:,7 0 �0• Cd a � v � 4. � o (U cd CA U W On m v c w 0 U CU w , rd u a @g9 v «S 4 r te . . N M `T:,7 Who* Are Qur, staff is made, up of a diverse group of individuals with decades :of experience working a labor issues. as researchers - educators„ organizers,- and union, leaders. Our Advisory -Board includes Northern California labor .leaders, labor educators, communitractivists and 'UC. Berkeley faculty with expertise in labor• issues.. What We Do. The Labor Center provides educational, research, and other programs that ,increase the California , labor.'movement's. capacity for v Organize and represent workers in new and traditional industries. r e Reach : out to immigrants, young workers, people .of color,. and women. v' Identify and advance policies that improve low -wage jobs and.narrow° 'income gaps. • Develop a,new;and diverse generation of labor'leaders. Education CALIFORNLA UNION LEADERSHIP SCHOOL: Week -long residential - :course for executive union officers on economics„ politics, and strategic,power. (Co- sponsored by the ILE) STRATEGIC CAMPAIGNS AND I06(isTRIAL TARGETING: Training'for organising, directors, officers, and other leaders on how to plan and implement'.corriprehensve, public campaigns. ADVANCED1SKILLS DEVELOPMENT': Training for chief officers and staff on how to effectively manage complex :labor organizations, including finance and communications. Research ECONOMIC AND POLICY ANALYSIS: Applied research that provides practitioners with useful information about labor °markets and policy initiatives. STRATEGIC RESEARCH: Research and technical support that help unions analyze and develop effective organizing strategies for their industries and constituencies: PARTICIPATORY RESEARCH: Programs that involve workers. in research about `their own workplaces and communities. University- Labor Collaborations LABOR SUMMER: A. two = month :internship program thatplaces UC: students in unions and community groups for training, research, and on- the- ground campaign support: COMMUNITY SCHOLARS: A;semester -long, seminar in which labor and community organizers collaborate. with graduate students on action research - projects. CONVENINGS'c Confererices,.{seminars, and working, groups that bring, stakeholders, together to, discuss h glr -priority issues and; build consensus for policy reform. Accomplishroents During the past three years" Labor' Center has'? a Provided academic ; research and expert_ testimony that contributed to the passage of hiving wage ordinances in California.... Convened 'a community sand labor coalition. 'that played a key` role : in. advancing the new AFL -C10 policy .on immigration.. Placed - UC students in two month summer internships: with 58 community and labor organizations. • Incubated innovative immigrant worker and young worker organzing`projects. • Produced .research, videos and ,curricula on key topics including,, homecare, childcare, farm labor, young. workers, and globalization., The labor, Center is a program of UC Berkeley's Institute of;Industnal Relations.andthe Institutefor Labor - and' Employment (ILE)„ astatewide resea_ rch program of the University of California.