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HomeMy WebLinkAboutAgenda Bill 7.A 09/20/2004CITY OF PETALUMA, CALIFORNIA 7. AGENDA ILL Septomber 2 , 2004 Abend'a Title: Presentation and Discussion Regarding Possible Meeting: Dater September 20, 2004 Wage Ordinance. Meeting. Time: ❑ 3:00 PM 7:00 PM Category (check_ one):.. 0 :Consent Calendar ❑ Public'Hearing E New Business ❑ Unfinished Business, ❑' Presenta_ t_ ion Department: Director:` Contact Person:._ Phone.Number: City Manager M, ichael' Bierman Michael Bierman, 778-4345 Cost of Proposal: Account Number: Amount Budgeted- Name of Fund: Attachments to Agenda Packet I;tem:' 1. Recently passed living wage: ordinance for the City of Sonoma .2. City of Petaluma Service. -Contracts Summary (as prepared by U.S. Berkeley Institute for Labor and Employment) 3. A Living Wage for,- Santa Rosd and Petaluma, a publication of ,the UC Berkeley Center for Labor Research and Education 4., Living Wage Laws "& Communities;.,a publication of the Brennan Center for Justice, 1 5. California Labor & Employinent,publication, Spring,2002 '6. UC Berkeley Labor Center brochure Summary Statement: The Living Wage Coalition of Sonoma 'County will give a presentation to the Council regarding a living wage ordinance' 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.fiscal:impact report; using, the Sonorria.ordinance as a baseline, with the thresholds and exemptions remaining.more, or less the same. The Living Wage Coalition of `Sonorna County proposes . to split the cost of the fiscal impact report, estimated to, cost approximately $5,000. Recommended'City Council;Action%Sueaested.Motion: Discussion and Direction regarding the -proposed living wage ordinance. Reviewed bv.l+inance Director: Reviewed by City Attorney: Approved> -)by iCit'v'Manager: Date: Dater Date: odav's Date: Revision # and Date Revised: File Code: 31 May 2004 PROPOSED' LIVING WAGE -"CITY "OF SONOMA Page 1 of 9 Impacts of.the,-proposed' Living Wage Ordinance for the City..of Sonoma: Cit,Employees,'Contracts, Leases, Franchises,'Agreerrients and Grants 'Revised Report: 331'M�ay 2004 Marcee Harris,. M.P.P. Goldman School of Public Policy 'University of California.at Berkeley Dr Peter V. Hall' ;Faculty of Environmental Studies, University of Waterloo, . 1. Introduction and Summary The purpose of the proposed Living Wage Ordinance: for`the 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 `f rms and non -profits receiving substantial grants,'aloaris; financial assistance, leases, concessions, franchises and other forms of support from 'th.e .Gity,..eamia living wage' with benefits. The purpose of this report is to present estimates of the 1`ikely'impact of the proposed Living Wage Ordinance for the City of Sonorria.as applied to city�eiriployees, service contractors, lessees, franchisees, and recipients of financial assistance. This report updates the esti_rnates-contained in our February2'004 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 and.health:benefrts costing $12,300 per year: • The employment status of Sonoma Valley Visitors.Bureau employees has:been confirmed. Ten employees will receivel ad'ditioiial pay, leave and health benefits costing '$24,500"per -year. ® The Proposed Ordinance has been revised to exempt volunteers; including. part-time 'f refrghters ,and firefighters Wiih EMT. certification. It is estimated that approximately 40 Emergency Medicate Technicians and Paramedi„cs willreceive additional pay, leave and health benefits costing up to $104;700 per "year. The estimates, indicate that 57 low. -Wage workerswill receive wage, leave and/or health benefit increases worth an,average of up to $2,270,per worker per year under the proposed policy. This,will' cost employers a total of up to $141,400.per year. It is likely that most of this cost will ,be borne by the„City. This represents up to 0.9% of the 2002/3City Budget, or up to $15.49 per resident per year. 1 Research -Associate ofthe Institutefor. Labor and Employment, University`of California,at Berkeley. 2 &this report the term `city' means the City of Sonoma and all:City.agencies. ' 31 May20.04 PROPOSED LIVINGWAGE- CITY OF SONOMA Page 2 of-9 i A significant proportion of the estimated benefits - and costs accrue because part4ime EMTs and Paramedics working for the .City are covered'by the proposed policy. If 'these groups. were not covered under the policy, the cost to employers would be reduced.to $3.6,800per year, and only T7 workers would benefit. In,summary; the proposed Living Wage Ordinance will generate modest but: verytangible 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 emooyment, "wage and health coverage data f6uthe, employees of the City Departments, Service Contractors.and Novi -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 compile this report. Section 3 examines the impacts on each category of employer covered by the proposed tiving'Wage ordinance,,'Section 4.presents the aggregate impacts, of the. proposed Living-Wage.ordinance and Section 5 provides a.conclusion. 2. Assumptions, Data and Methodology A Living Wage Ordinance.fonhe City of Sonoma was introduced in March 2003 (see www.livinawnesonoma:or )3., Note that we have assumed that the Ordinance will establish $13, 20 per hour. asthe minimum value of wages and health benefits,; and that thei 127day paid leave'benefit,is .pro=rated for part-time employees. :The following. information was, requested from the Cityof Sonoma, and was provided by Carol Giovanatto, Assistant City,Manager and Mike.Fuson, City Manager: • City job classifications, with information on wages, benefit, coverage, and work hours. • Names, contact infonnatibn:atid contract details regarding: o Noii=profit organizations receiving grants./ contracts., o. For=profit service contract -holders. o City :franchise-, concession- and lease -holders. o 'Recipients of financial aid, grants;.fee waivers, and: other forms of`assistance. o Contracts, joint ventures, partnerships and other arrangements that the City entered. in order to purchase,or provide services with; other Cities ..and/or- public agencies. 3 first draft report Februa -2004 was com _l"ete&prior, to -the introduction of an ordinance in the'Cityof- Our p i r}'„ ) P Sonoma, and.hence the report assumed to followlhe Sebastopol Living Wage Ordinance passed in December',2003, U 31 May 2004 PROPOSED.LIVING WAGE - CITY OF, SONOMA Page 3 of 9 The methodology'foll'owed-in prepanrig this report has,been successfully developed in previous prospective s`tudies.of Living Wage g Ordinances.. Usin the contact information provided by- tliel City —of 'Sonoma, we interviewed thirtyrepresentdtives of firms, nori-profit organizations"and agencies to obtain specific .iriformafion;on the size and.nature of the contractual arrangement, employment levels, hours,woiked, wagesand benefit coverage. The report estimates wage 'and ,b.enefit improvements for directly' covered workers and .those that may experience a spillover effect5,' as well as costs to employers. 3. Identification of covered workers In order to estimate the impact�of'the proposed.Living'Wage ordinance we examine six categories ofemployrri ansing from City activities "separately (see�Table 1). These categories include city employees; public agency-empl'oyees,, non-profit employees, service contractors, leaseholders and.franchisees. The remainder of This section out the number Of employees, that will be covered by the proposed Living Wage,ordinance. Table 1: Employment.resulting from City of Sonoma activities 'Category All Grants % Affected Grants / ' Employees " 'Comments Contracts 7 Contracts / beriefittingg Agreements Agreements City. Departments, = - 47 7 regular employees; 40-part- I'time EMTs and Paramedics Public agencies 1 3 j Non-profit 1 1 10 . Sonoma Valley Visitors contracts / grants' I I Bureau Service Contracts ,16 0 0, 12.Service Contracts 2 'Construction Contracts 2 'Public Sector Contracts Leaseholders - 8 �' 0 0 Franchisees 3. 0 Q Note: Only includes grants fo non=p-rofits >$75,000,and city'contracts>$1.0;000'per year. 4 See Hall (2003) Impacts. of the,proposed Living Wage�Ordinance for -the City of Sebastopol.. Report of the Institute for Labor and Employment, UC,Berkeley [Available at w,ww`.son omal'ivinwaue.ore]. Also see.;Zabin,,Reich and Hall (1999). Living. Wages at„the Port of. Oakland. Report.of the�CLRE (IIR); :UC Berkeley; and Reich; Hall and Hsu (1999). Living Wages. and t1ie;San„Francisco Economy: The Benefits and the Costs (In two. releases): Rep ort.of the Bay Area Living'Wage Research�Group'(IIR); UC Berkeley, [Both;available at'http://iir:berkelev.edu/livinQwaeelT 5 Living Wage Ordinances may:result.ifi higher wages+for workers not directly covered by the ordinance because of what are known as spillover effects. Economists typically distinguish beiween,(1) vertical spillovers' raises within the firm that are designed to maintain, -the wage hierarchy; and (2) .hoiizontal, spillovers; raises, within the firm to maintain wage parity;between covered and uncovered workers or raises in other firms that are competing in the same labor market as the covered firm. Empirical,studies of minimum wage; increases indicate that spillover. effects attenuate rapidly; in other words. an increase in the wage floor does raise the wages.of those just.above the new wage floor, but does not shiftthe, entire wage stricture upwards. Hence.such wage policies, result in wage compression (for a.re"view And application to Califomia see Reich and Hall (2001). "A small raise for the bottom": In: Lincoln, J and P Ong,. '(eds)'; "The State of Galifornia Labor. Institute of:Industrial Relations` Berkeley). Current • research indicates'the spillover effec6s of living wage ordinances are more limited than those associated with minimum wages°because they typically do not affect all the workers,in,a given labor market, but that they are similarly attenuated and so do�contribute (modestly) to overall wage compression:' 31 May 2004 PROPOSED LIVING WAGE - CITY OF SONOMA Page 4 of 9 i 3.1 City Employees • According to information provided by City staff,, there are no full-time positions that pay. below the living. wage. Two part-time posiitibrisi are without benefits and/or paybelow the living wage level. City; staff indicated that an; additional 5 employees will receive leave benefits. Assuming that all currently .unfilled positions are filled, the; estimated cost of these pay, leave and health benefits to the City is $12,300. The City of Sonoma also employs 19 Paramedics and 21 EMTs who work, on, a part-time basis.6 This is in addition to 18 volunteer, firefighters and firefighters with"EMT certification who, by •custom and tradition, are paid "the minimum wage (firefighters without EMT certification are paid $6.75 per hour without health'and leave benefits; firefighters with, EMT certification are paid $9A9 per hour). While the volunteers will be exempt;from.Living Wage coverage, EMTs and Paramedics are more likely, to, regard their positions as the first step in their careers: Current entry, wages ,are `$11 per hour for paramedics and ,$9 per hour for EMTs, without Health of4eave benefits. The existing_ wage differential reflects the:higher skill level.required of paramedics, and it is likely that some wage differential will be maintained when the Living Wage :Ordinance is implemented. The size:'of the new'wage differential depends on bargaining,,and market forces, and.need not„necessarily be the same absolute size as the previous differential.'Eviderice from research on nummum wage increases in the 1990s indicates that ;there. "is both a ripple effect and an absolute wage ;compression when,,such policies are implemented. This means that some workers earning close to the new minimum wage level actually receive wage increases above the =w minimum wage level, but these increases. are not as large as those: "received at the oldminirnum'wage;,level. In other words, the wage differential is maintained'but. it is, absolutely sina1ler1fidn before (see footnote 5 above)*. We have therefore, estimated the ,costs of the. ordinance with EMTs paid $1120 per hour, and paramedics'paid ,$1.4.20. (a $1 differential) and $15.20 (the current $2 differential) per; hour. The cost, of the city of'thesewage, benefit and leave increases will be between. $93,30.0 and $104,70.0 per year. Although we have not.attempted to estimate the turnoverjetention, absenteeism and other, improved performance'; benefits of the proposed Living Wage Ordinance we.note that these maybe significant in°the case -of EMTs and Paramedics. Furthermore; Citystaff indicated, that cost savings could be achieved if higher wages for part-time paramedics reduced the nded:to assign tasks to firefighter%paramedics working overtime. This will'have the effect of off. -setting 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'spayroll report, and that they were. not all employed:ai the same'.time. Hence, the total';numbers' feported here exceed the number of active•employees at;any given point in time. 1 For recent research.on the:se'rvice benefits of the living Wage, see Reich, Hall arid:Jacobs,(2003). Living. Wages. and Economic'Perforniance: The, San Francisco Airport Model. ILE (IIR), UC'. Berkeley; [Available on-line. at • bftD://iir.ber-kelev.edu/livin,-,«aL,dl., See also Howard Greenwich (1999) Gity of Berkeley'Living: Wage,Analysis prepared by Howard Greenwichiunder contract forthe City•of-BerkeleyDepartment:of Finance, November 1999. ' 31 May'2004 PROPOSED LIVING WAGE.- CITY OF SONOMA Page 5 of 9 3.2 Relationships -with Public Agencies The City of Sonoma ,is involved in various contractual, relationships with public agencies for protective services; at the'time of writing we,are aware of three. The first is a contract for police dispatch: services with the Sonoma County:Sheriff s_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`s Tor fire :and emergency medical dispatch services with the REDCOM Joint.Powers: Authority. It was ascertained during the inipact:study for the: Sebastopol .Living Wage that employees working in these agencies are directly employed 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 $75000 was -awarded. The Sonoma Valley Visitor's Bureau is a.membership organization made up of more than 300 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 under'the proposed living wage thresholds. These"positions are all filled by part time ,employees. Using payroll information from the calendar. year,2003, we conclude -that the 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 or more to at least sixteen organizations'. Of these, two were for construction, two for:protective services, and twelve for professional services. None of the contracts forservices will result in wage and fiscal ,impacts. A. Services: Intl e 2002/3 Fiscal year the City let twelve service contracts in excess of $10,000 for- a;;combined'total of at least,$608,000 (some contracts specify a:minimum annual payment). The contracts.,included professional services such as, auditing, engineering'and planning services, as well as landscaping: and janitorial services. All of these contracts are exempt :from, or ;unaffected° by; the proposed ordinance: The reasons why these contractors are not affected,are os follows: o Four contractors already pay their employees more than the proposed',living wage level. o In 'three: cases, all employees of the contractor devote less than 20% o of their working time `to the City Contract. 31 May 2004 PROPOSED LIVING WAGE - CITY OF SONOMA Page 6 of 9 o Two contractors employ fewer than 6 ,people.$ • o ' Three contractors did not provide -information, but based on contractual information; we estimate that they would he exempt based on the 20%:rude. B. Construction: In the 2002/3 financial year, two construction contracts for.an amount greater than;$°1,.0,000 were let. The City -of Sonoma .conducts most minorr 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 'of these contracts will be'sufficiently largeso,as to :qualify'for Prevailing Wage coverage under the relevant state,and/or Tfederalregulations (,the Califom a.Slate Labor Code and/or, federal Davis -Bacon Act). Hence the proposed living wage ordinance is assumed to have no impact on construction contracts. 3.5 City Leaseholders Currently eight organizations hold 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.fromthe-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 service contract agreement. 3.6 City Franchisees Currently three organizations hold franchises with. the City of Sonoma:. Franchisees will only bex vered.bythe proposed. Living Wage ,Ordinance if they have 25 employees .or more, and revenue of;$35b,000 or more per. year. Otherexemption conditions also, apply: The result is - that no, franchisees are likely to be affected'b:y 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 Burbank,Housingbevelopment .Corporation. proposes combining'various funding ,sources in order to, develop affordable housing units in the City of Sonoma. The': City Community,Development Agency is expected contribute more than $1:00,000'to this d'eveloprnerit and.;hence this employer will be covered by the proposed' Living Wage Ordinance. In an interview conducted..during the preparation of the impact study for the Sebastopol Living `Wage, the Executive Director of Burbank Housing reported that, most; of their employees already earn more than the proposed living wage level. The:;Director further indicated that Burbank.Housing seeks to be an employer. that pays living wages,, and it is s In the,previous version of'this`reporf we estimated the irnpact,of Living Wage coveiage on Guerrero Janitorial: We • have since learned that thi_"s fum.employs fewer than 6 people. VV 3,1 May 2004 PROPOSED:LIVING WAGE - CITY OF SONOMA Page 7 of 9 assumed that this city financial assistant recipient=will not change -their development plans if the Ordinance' is 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 4bove, This is shown in Table 2. Table 2: Aggregate Impacts of the Proposed City of Sonoma;.Living Wage Coverage - Average wage. Cost to employers increase Cost per .Benefiting:,. and health benefit per yean(includes o as in proposed as /o of resident workers. increase per employer -paid. ordinance with: Budget per year Worker. per year 'taxes), . City, SVVB 17' $1,020 .$ M-,800.00 _ A23% $4.03 City, SVVB, EMT / Paramedic ($,1 4.20): 57 $2,090 $130,1 g0.00 0. 82% $14.25 City, SVVB, EMT Paramedic ($15.20),. 57 ` $2,270 $141,X0.00 0.90P o $15.49 The estimates indicate�that.57 aow-wage workers- Will. receive wage, leave and/or health • benefit increases worth. an average pf up to $2,270 perworker.'per .year under the proposed policy.. This will cost:employers a total of up to $14.1,400 per year. These impacts will be felt exclusively by the .City and one non-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" -profit, and its relatively inflexible staffing requirements. This represents .up to 0.9% of the 2002/3 City -Operating Budget of over $15 million, or up to $15.49 per residentper`year. If the proposed' ordinance .is not, applied toEMTs'and P'aramed 'cs, then it is estimated 171ow- wage workers, will receive wage; leave and/or Health°benefit increases worth an average of approximately.$1,920'per worker. per year under, the ,proposed' policy. The total cost to employers, which includes employer=paid,taxes; will be approximately$36,800.per year. This,,represents '0.23% ofthe ,total 20.02/3 Operating -Budget of the City and approximately $4.03 per year,for each ofthe 0,128 resident's of the City. Note'that the.following additional,considerations apply to these estimates: (1) We have assumed that.the administrative (monitoring and enforcement) costs of the Ordinance to the City; and of compliance with responsible bidder requirements by City Contractors, are negligibl'e.9 The;City will incur some one-offcosts to draft appropriate language for'requestsI for bids and contracts, and to: establish appropriate procedures, as well as the, ongoing costs of implementing the complaints procedure. However, given the • 9 See Ehnore; Andrew "Living Wages Laws: Smarter Economic Development; Lower Than Expected,Costs". Brennan Center for Justice'bttr)://v"-x-,",.brennancenter.ors/proi rarris,'liviri wake/elinorerenort.htrii] 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 appropriateTegulatory 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,of the community. (2) 'The Living Wage Ordinance provides for:'a phase -in over a period,of up to three ,years as existing contracts are renegotiated',, and covered 501(c)(3) nonprof is are not -required to comply, until 2007. According to City,staff, thisprovis_ion does not affect the non- .governmental employer that is immediately affected by the. ordinance —the Sonoma Valley Visitors Bureau. (3) We have not:included estimates of the costs and benefits of extending Living Wage coverage W 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.in widespread. wage:increases for low -wage workers.'10 It.is however unlikely thavany S'onorria.low-' wage workers will be affected by this mechanism, given the thresholds °for coverage contained in the draft Ordinance,(e.g. only.Cify.Financial Aid Recipients receiving more than $1,00,000 in any twelve-month period- would be covered). Two. ernplbyers received grants in'excess. of $1000,000 from the Cityin fiscal year 2004 — the>Sonorria 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, fries and City of Sonoma.. The relatively modest costs and benefits ofthe 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's Center; do employ people, at a low wage who, will benefit frofn the ordinance. A signifrcant_proportion of the estimated benefits and costs, accrue because part-time:.EMTs, and Paramedics working for the City are covered by the proposed policy. "If these: groups were not covered under. the policy, the cost and benefits of the policy would be significantly Teduced. 'OSee,-Neumark'(2002).,How Living Wage Laws.Affect Low -Wage. Workers and Low -Income Families., Public Policy Insfitute:,of California. [Available;online at This research has been the subjec't.of considerable ,crificism fo'r over-stating.the effects of the�'Living Wage: see Brenner, Wicks -Lim, and Pollin (2002),..Measurmg the Impact of Living Wage Laws.: A. Critical Appraisal'of David.Neumark''s: How Living Wage Laws Affect Low=,Wage Workers and Low -Income Families. PERI, University of Massachusetts at Amherst (Working Paper Number 43). [Available on-line:at https//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 Living Wage ordinances have improved economic development in the affected communities and have cost..much less .to implement than.inost analysts initially expected. In fact, a survey of cities and 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.' i For a relatively small;price, .the ordinance will bring an increase in:the welfare of a small number of workers, and -azommensurate improvement in.the: quality of city services.', Most importantly, in adopting the proposed Living Wage ordinance, the residents of the City of Sonoma through their erected representatives, would be enhancingthe position of the City as an economic actor committed to the protection of the livelihoods of workers. Elmore, Andrew "Living Wages Laws%Smarter Economic Development,RLower Than Expected Costs". Brennan Center for Justice htto://www.brennancenter.orp/DroVrams/livML wage/elmorere1jort.htm1 • iz For recent research on the service benefits of the Living'Wage,..see Reich, Hall and Jacobs (2003). Living Wages and Economic Performance: The San Francisco Airport Model. ILE•(IIR),'UC Berkeley. [Available on-line at http://iir.berkeley: edu/livingwage/] 2,00`0 - 2 0 01 prepared by Samantha TePIi.tzky UC `Berkeley Institute for' le, to and Employment City of Petaluma -.Service Contracts'SuIIimary I � { CONTRACTOR I PURPOSE ( AMOUNT I EXPIRATION { 1 { MV Transportation,. Inc I Transit J'IM1,450 per year I , 2 I PPSC I Paratransit { $366;8,15 per year _ { 3 North Bay Landscape median mowing' $88,140 Management 4 I KeystoneTractor'S.eryice:. J_weed;abatement. $17,500 { 5 -{ Dion's Downtown"Towing� I towing 6 { American Tow Service_ I ;towing 7 { Old Adobe Developmental ('`clean-up services- j 31.8 840 I f 8 I RMA Engineering and I wastewater treatment I •$610,2010 Management 9 { Raintree I carwash. Contracts excluded- --less than §10,000 -fewer- than six employees --all construction grid pt,evail ng wage ==all consulting and,Proifessdonal servir.,es A"Lving- Wa.ge For '5t: to Rosa 'd eaAu a„ A Report on the Benefits. and Impacts,of ativing WAge Ordinance on the�'Cities :of Santa -Rosa and Petaluma August'2002 J Sadnantha Tcplitzky, M.A. A Publication'of the ITC Berkeley Centerfor'Labor Research and Education And the'UC Tnstitute for Labor and Emptoyment Y Sonoma: County and the Living Wage: Page 28 A Stud3r of the Impact of.A Living Wage Ordinance on the Cities of Santa Rosa and Petaluma found that the majority of Workers lack- health care coverage throughtheir employers at the Marketplace and Town Center. Table 6- Santa. Rosa Marketplace -and Santa ,Rosa Town Center Jobs Created Store Category'by Number of . Number of Percent Entry-level Size Stores Jobs Part -Time Wage Jobs 5 —10 Employees 6 46 l 1 — 50 Employees 11 269 51+ Employees 6 971 TOTAL 23 1286 67% $6.92 ' 60% $7.24 approx.50- $8.79 60% Source: Interviews with, sfore ,managers and employees, Oct. 2001. Average Wage 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 tnc broau categpry of 'servi'ce! sector Workers, particularly retail trade and business services. These jobs are among the fastest growing — and, lowest paid -positions in the region and the �riation overall.(see Table 1). In addition, the majority of such jobs are held ,by'adults, not by teenagers as some'.critics, ofminimuln..and Living Wage increases maintain.41 $7:12 $7.97 NIA. The proposed Living-, Wage ordinance could assist approximately 400 low=wage workers employed. directly by the city of Santa' Rosa or its contractors. Provisions. related t-o economic subsidies wguld only apply to .future recipients, -therefore -it is difficult 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 workers, most of whom were paid for professional services at billable rates :in the ,range of $50 4150 per hour. Table 7 outlines the' distribution of :employees according to the monetary amount of the contract. All contracts were obtained with the. assistance of the - Petaluma City Clerk's office. 41 Hopy`Sklar, Laryssa Mykyta; Susan Wefald; Raise the Floor: Wages and Policies That Work for All of Us New York; Ms' .Found'ation for Women, 2001; pp 62-63 Sonoma County and the ,Living W%Vage: Page 29 A Study of the Impact'of a Living Wage .Ordinance Amkk on the Cities of Santa Rosa _and.,Petaluma Table 7: Distribution of.Petaluma Service Contracts Annual $ Paid # of emaovers or contractors $1.0,000-$24;000 , 5 $25,700,0 - $99,999 1 $1 OQ;000, 3 -Total 9 The Living Wage oid'inance- would cover 9 contractors who employ almost 100 workers. Approximately 75 employees would.be affected by a"wage of $15.. The contrac..ts..are.,distributed... among several industries; uicluding transit-, 'landscaping, maintenance° and waste management. Table 8: City of Petaluma Service Contracts City of Petaluma Service Contracts Contract Type Administrative and Support Services Landscape Services Other Services to Buildings & Dwellings Waste Management and Remediation,Services Transportation Support Activities Repair and Maintenance TOTAL Number of Average Total Percent, Nrrniber Percent Nimiber 'Contracting, Size:, Number Paid Paid Paid Paid ,Firms, of Finn" . of [Yorkers' <$12 50 < $12.50, < $15.00 < $15.00 2 6 •12 71°% 9 77"/q 9 1. 4 4 -65% 3 73% 3 1, 50 •50 . 7 1 % 36 77% 39 2 8 16 55% 9 66% 11 3' 5 15 55% 8 66% 10 9 10.8 97 66% 64 730/. 71 Non -Profit Service Contractors The City of Petaluma's Commum' Development„Commission• funds,,several nornprofts, most of which deal with Housing' Administration, Projects and Programs. For the 2001-02" Fiscal Year, the City has allotted ,$4,472,1DO for Homelessness .prevention and shelter services, Transitional Housing, aFamily ,Rental Projects, Senior, Projects and.. Programs,, Homeownership and Rehabilitation Programs, Colnmriity Revitalization Programs; and Administration costs. The funds were distributed among ten ,ion -profit housing agencies;. employing an undetermined number of -workers. As stated above;. Non -Profit Sector employees earn an average of 17.06 per year, 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 Group to rezone and develop the site.. A report issued by .the Chelsea Group in 1950 estimated that the city would benefit 'from. $700,000 in additional sales tax revenue ($4,00',000 from the outlet mall and $300,000 from the .adjoining River Oaks development), <an additional- $500,000 in ;property tax. revenue, all of which would be allotted to the.�Petaluma'Redevelopment Agency, until. 1994 and after 1994 would be. shared..equally between the Agency and local schools. The report also predicted $30,000;000 in additional community payroll in the ;'forER an estimated 1,5..00 :new: jobs described :as high=paying, management" positions offering en average.of $20;000 per year. The Chelsea Group also agreed to. pay $1,200;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 city, the indirect subsidies, as well as general approval, act in a similar manner, — they, send,!a, message. about the desirable form of development. 'The City's,permission was contingent upon the developer's contribution to traffic mitigation; adherence to environmental; codes , and promises to funnel shopping at the Outlet Village, into shopping :downtown, .but no consideration was given'to the nature of jobs that would.be, created by the project. The Outlet Village houses about 4.7 stores,- and employs approximately 270 workers. The s'.o es Y a ige ui. ize from 5 to about. 30 employees, 66 percent of whom are part-time with an average entry-level wage of $8.13 per hour. In addition; 88 percent of employees represented by the survey were over 18' years- of age. Table 9 highlights the results of our survey: 'fable 9:1Petal'uma Factorv'O.utlet Villaze:Jobs Created Number of .Percent Percent Entry4evel Average Wage Stores Full -Time Part -Time Wage Surveyed Jobs Jobs 27 34% I '66% $8. 13 I $9..59. Source: 'Interviews with -!store nmanagers and employees, Oct. 2001. It should be noted that the omission of low -paid food, service workers from the Petaluma Factory Outlet survey has. caused.its average, wages, to be slightly higher than those of the Santa,Rosa shopping centers.- Petaluina.SumMary: The: proposed Living Wage ordinance could. affect approximately 75 low=wage workers currently. iemployed.cin City contracts. The provisions of'the ordinance which apply to economic development subsidies and assistance would have a larger .impact on future . projects within the Petaluma redevelopment zones.:. Economic! Justice Project Noviarnber 2003 BRENNIW.NTERFORJUSTICE AT NYU SCHOOL OF LAW Living Wage Laws: Expanding. Nationwide - In one of the,most pronounced local policy trends in :recent years, scores of cities and counties across the"'Uiiited. States=more- than one.hund'redas of.luly„ 2003—have adopted local. "living wage' laws. Under these laws; employers receiving city contracts or'ciiry business subsidies ,rriusv pay full=time_'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 Living 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'.two key questions about these laws: Will they increase the costs of city contracts? Will they limit .the ability of.cities to use business subsidies to ..increase the.number 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 generatedunder two, types of`'city programs: City Contracts Cities :(and other local ;governments) employ private contractors to provide a range of services for the government and the public. 'Living wage laws require firms: thatperform:cityservice contracts to pay'their workers a "living wage' —generally set between $8 and'$17 per hour —and to provide health benefits. City Business Subsidies In orderto attract orretain j ' s, iwtheir communities; some cities offer taxpayer=funded business subsidies —usually in the form of grants, tax abatements or below -market bonds or loan s—to.employers that pledge'to,,open or retain facilities in the community. Living wage laws require employers receiving city business subsidies to pay their work_ers.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 programs —and in some cases such programs -were actually strengthened. By collecting the actual findings4 government officials in commu- ;nities that have implemented living wage laws, this °report provides detailed: -information that may be valuable to other communities considering whether to enact similar laws._ Table 1: Increases in, City Contract Costs After Passage of LiVing,VVage Laws; 2001 Locality I City Budget Alexandria,VA I $3,95,63,61000 Berkeley; CA. $289546,000 Cambridge; MA I $296,467,000 Hartford, CT $422,667,000 Hayward, CA I $1`35,400,000 Mad son; Wl I $159,000,000 New Haven, CT $51 1,071,000. Pasadena, CA $493,596',000 San,Jose; CA $6451000wo Warren, MI $1-36;490,000 Ypsilanti; MI I $13,000,000 YpsilantiTwnship, MI I $24,745;000' Contract Cost Increase I Increase as a % of City Budget $265,000 , 0.067% $229;000 0.079% $J50-$200,000 0.067% $' 160;000 0.038% $9000 0.006% -- $29,000 I 0.01 Va _$20;000 0.003% $240,000 0.049% $40;000 - I 0:00'6% $60,000 0.040% $6,000 - 0.044% $0 0.0% The twelve .c... es'in' this ;table represent all' of°those that had had a living,wage,law iii force for at least one year�as,of2001 and that were able to report tcr us internal ,assessments of the effects of thet:liwlaws on. costs for city, service ~contracts. Table, 2; Increases in Human Services_ Contract Costs After Passage •of Living:Wage' Laws„ 2001 -' Locality Budget for Human Cost Increase for Increase as a % of Services Contracts Human Services ;Contracts; Human Services Budget :. Berkeley, CA $6;0991000: $.170,000, 2.79% Dane 'Cty, WI I $1 12,obb,000 $338,000 0:3% San Francisco, CA I $312;000,000 $V14;000: 1.01 * The three localities in this table were those..that covered human services contracts-ur d'er.a living�wage law that had been in force for at 'least one year as of 2001 and, that were'able to report to us internal assessmenmof thc.resuliing costs. Because these localities were able to break out their human services.coptracting budgets from the overall city or county budgets, wecompare the cost increases•to the human services budgets rather than to the overall budgets as in Table 1. City Contracts: City' usin.e0'SU' bsidies: Lower Than Expected :Costs Smarter Ec.oho , is Development For, city contracts, *local officials- reported that cost increases have been small and less 'than °initially expected. For most cities, contract costs increased;by less than 0.1 %' of - the overall local budget in theyears after"a living wage law'was adopted. See Table L at left. a 'Generally, in each city a few contracts involving large numbers of low -wage workers —for example_ , contracts,f6. 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 that_most contracts increased, little, if any, in cost. 'In many cases, contracting employers were repported 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 forbid in many years, reportedly`yieldirig savings for the cities. In localities that extended, living wage requirements to human services such as home healfficare.or child care 'services, cost increases were slightly larger=ranging from .0.3%, to 2.79% of local human services hudgets-although still .quite moderate overall. See Table 2, above. These increased costs reflect both4e high, concentrations of low wages among city -contracted' caregivers; and 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.agd•the budgetary con- straints faced by the non-profit agencies that often provide these services. ,For city business subsidy programs, local, officials reported that they- could; _still attract desired 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:requiremenissthat 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-wagejobs„ 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 lo'cal.officials'reported using their business ,sub"sidy programs to attract jobs in low -wage sectors such as .retail; shire such jobs: are less ,berie-ficial to local residents and ;the economy than higher paying jobs. The few that did use subsidies -to attract retail jobs; reported that they were still generally able, to attract such employers, although, some cities 'renegotiated subsidy packages or chose .to exempt some busi- nesses from the living wage requirement. A Guide fo,r Local Policyma�kers Local governments, in their findings collected in this study, con- sistently, report that living wage laws cause only small increases in cityy contract costs; and do, not interfere with city business subsidy Programs. . This snapshot of the actual effects ,of -fully implemented living, wage laws Jr a range of communities provides useful guid- ance for policymakers considering adopting such measures. 4 Table 3: Impact of. Living Wage Laws on City Business Subsidy Programs; 2001 Number of.Projects with Number of Projects Locality Type,of Projects Living Wage CbrWitioris Cancelled Because of Each'Year Living Wage Law Duluth, M1. I Health Care, Technology I .2 I 0 Los Angeles, CA I Mixed Use I 3 I 0 Minneapolis, MN I Technology J 6-7 I 0 Oakland, CA J Mixed use I 1 I 0 'San Antonio;TX Technology, Finance, • 4 0 Manufacturing I I San Francisco, CA; I Mixed use I I `Toledo, OH I Industrial n/a . 0 Warren;.Ml ( Industrial; Manufacturing 4-6 .0 Ypsibnti;,Ml _ I Industrial I 0 Ypsilanti Township, MI I Technology, Industrial 5 0 * The ten, cities `in 'this table represent all `of tHose nationally that had had a living-wagerequirement: for recipients 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. requirements on their economic development programs. The Study The information, in this report was provided by local officials in, twenty cities and counties -the ;entire 'set of cities and, counties that, by late 2001, both a) h4d'• a 'liyirig wage law -that had been in force for at least one year, and .b). had the„adm'inistrative capacity to produce cost'impact estimates,.formal.internal evaluations, or other' 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, WI and "Warren, MI,'fhe•study. reflects the expe- riences of a broad range of communities with living wage laws: i` mm R FOR -JUSTICE AT:NYLI-SCHOOL, OF LAW The Brennan Center's Eco,n,omic justice ;Projoct Goodjobs�aie essential to the long-term viability'ofourcommunities and our economy.' The Bterinan. Center's Economic .Justice Project works with coalitions of stakeholders to createregional isolutions to problems of job' quality and:economic competitiveness:. We also work at a,broader level to help rebuild fhe.corejob and safety -pet, standards that have- been dismantled over the past three decades. We ,support these efforts to combat growing inequality with. a unique corribina- tion offresearch„legal assistance, and policyanalysis. Brennan Center for Justice 161 Avenue of the Americas, 12ih Floor New York, New York 1001.3 212 9-98.6730 fax 212 99.5 4550 For more information, contact Paul Sonn at paul.sonn9n'yu.edu A copy of the complete report is available on she Brennan' Center's website at http://www.brennancenter;brg. • • JITmn- � � �� ., � a � �-i L, � �: uP d Ni �� ;�� �, 1 ,.;, ,:e , s^.lit 6i .:J (' L O;L yjL c S, 0 A gto %; I'LL Since its establishment in July 2000.,; the University of California Insti- tute for Labor and Employment (ILE) has clone. much to revitalize academic research, education, and service pro - ,grams focusing on the state's labor force. °The ILE builds on the work of. the Institutes of Industrial Relafions (IIRs) -at UC, Berkeley and UCLA,, es shed,in -1945;.and on their',respec- "C'ente'rs for Labor' Research and Education. As a statewide, multicarn- pus :research program, the ILE supports and promotes labor and employment re- . search throughout the entire UC system. The ILE's mission is to study and find solutions for problems `of labor ,and employment in Californta and the .nation. The Institute also -serves' as a unique bridge between the Urii versity and the state's labor commu- nity by facilitating;m.ultidiscipinary 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 .in- 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'lifornia State Legislature, .the ILE was developed through an in- tensive planning process carried out by a,15-person Transition Team appointed by the University of California's Office of the President (UCOP). The team, led by ILE in- terim co -directors Jim Lincoln.and Pawl 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 -re- search.grant 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 projects as well as graduate; student „vm'A fellowships across `'j" ° .the m UC 'syste._ V3 Subsequent REPS were :isis,ued in Y 'spring 20011. and spring 2002. y" In early 20.01., Ruth Milkman Ruthr Milkman, a UCLA Professor of Sociology whose re- search career has focused on labor and workplace issues and -who also served on the Transition Team, was�appointed as ILE Director: Michael Reich; a UC Berkeley Professor of Economics, was appointed as the ILE's Research Chair shortly afterward, and the Tran- sitiori 'Team was :replaced by a new, smaller body, the, 3 ;eight -:monber ILE Governing r ,Lai* Council which makes all major policy and budget - decisions for the Michael Reich Institute. The Governing' Council also estab- lished a Research Advisory Board, which makes funding decisions for• the ILE's grants and fellowship pro- grams. In July 2001,, the UCOP ap.- p.oirited the ILE's. Advisory Board, which is chaired by Pro fes;sor- 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 organization in,the fall of.2001. He'holds an MBA from UCLA and has spent most: of his career in organized 'labor. Additional staff came on board during the summer and fall of 2061, in- cluding Margaret Leal-Sotelo, Chief of Staff, and Neal Sacharow, Commu- nications Director: On March 9, 2001, the ILE ;held its first major conference at UCLA, on "The New Economy and Union 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•orgam" zatons 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 emplo-ymentLeld should be doing in the comingyears. This was,,in short, an in- stitution -building conference that built on the experienceof indivi'duals,and.organi- zations from :around the U"riited States who have:..been active in labor policy re- search.. be, LE's research agenda focuses, Oil: three k areas: the new economy,' new off; a - new w.or,j6r-s"m CAfifornk On this basis, the ILE developed a research agenda that focuses on three. key areas: the "new econ_omy," "new labor,;" and "new workers" in Cali'foriiia-. We are especially :inter- . �. ested in supporting research .on e( nomic policy, -that tan help forge. a ne social contract appropriate �to the re- cent- technological and ,organizational transformations in the state's work- places; the: current'revifalization of the organized labor _movement, which is - especially concentrated in California; and the. role .of immigrant workers, who make up alarge.and ,growing pro- portion of the states workforce. Al- though the ILE supports a wide range of research on labor, and employment topics, these three areas dare of particu- lar importance for us. The ILE has sought :to :build truly statewide .capacity through outreach to all,theUC-campuses and the communities surrounding;them.. 4LE-led,rouridtables bringing together faculty, students; labor leaders, policy, makers, and community representatives' were held iri San Diego and Sacramento 'in the fall.of 2.001, and more are planned for the com- ing months. The ILE's work both reflects and contributes to .the California labor movement's role as a trendsetter for the nation. Building bridges between the academy and the world of labor, with a wide array of; research., ed- ucation, 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.,aduates of the `first entirely S apish -lap e labor " r leader= p g g- ship training in the United. States re- ceived, their diplomas on March S 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 region. Twenty-six immigrant workers, rep- resenting janitors, `hotel workers, gar- ment workers, nursing home and health care workers, construction workers, and security guardspparticipated in the weeklong, in -residence program.. They -were welcomed to, the campus by UCLA Vice Chancellor for Research Roberto Peccei, Labor Center, Direc- tor Kent Wong, and Ruth..Milkman, 0�,ector :o,f the ILE and the UCLA itute 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 of 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- Phis group that the Cole 9oisl designed to serve.. Kent Wong believes that participx- tion in the Cahfornia,Union-Leadership School's programs provides a very spe- opportunity. "It brings together . erienced educators and a broad Ispectrum�of union members to address the big picture issues that individual local unions normally don't have sufficient time to explore," lie noted. Class members°were`inspired by their .experiences. They con tinued 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- ment training they received; ;in- histo eluding 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 was exciting 'to' learn about glo- balization,and its impact on us as im- migrants," said Aaron Gonzalez of ' Ser vice Employees International Union - Local 1`877, which represents, Los An' geles'janitors. "I will definitely take this information back to rnyumbn' , as ,vell as to my community." "It exceeded our, most ambitious 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` ry and workplace health and safety issues 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 Labor- Centers. ®_ 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- JLE- funded research. conference on the,hv- ing,wage movement., Organized by UC:. Riverside:economist David'Fairris, the gathering drew researchers from;across the state :and beyond. Living wage�ordinance s:require des-, ignored .employers,: usually those re' ceiving contracts .and-/. or economic development subsidies from localgov-. ernment agencies; to pay wages above those required by federal and state minimum wage laws:. Since Baltimore pa;s•sed a patli- breaking living wage ordinancein 1-994, dozens of communities nationwide-, including° several it! California, have enacted similar, ordinances. The living, wage rnovement'is rooted in coalitions of community groups, faith -based .or- ganizations,, and, labor unions commit- `ted to addressing the problems of the working poor. "From the stand- point of the labor economist confer- ence organizer; Farris _noted, "`living° wages ,are —of interest because they -provide a _vehicle Da,vid'Fa'irris. 'to study employment impacts and` other •related consequences of raising the minimum,wage.by a signifi- cant amount." Stephanie Luce Stephanie Luce of the Labor_ Center ,at the ,University.of Mas- sachusetts, Amherst, began the day with a keynote presentation titled, "The Living Graduate Research C®nfe'rence continued from p.1 to Milkman's presentation, the open- ing plenary, titled "The New Labor Movement:' Perspectives from the Field," also featured presentations from Amy Dean from the South iBay Central Labor Council and Raahi Reddy of the Ser- `vice Employees Iri- Amy Dean ternational Union. "What 'I most `liked about the Conferencewas the e small; intimate at- rnosphere and the: wonderful choi�e Raahi Reddy, of speakers," one. student:said.. "I appreciated the interdis- ciphnary'nature of the ,gathering 'said another. `°Ibis `cross-pollination' of stu- dents with .common issues of concern is an important contribution of the ILE', and the focus on`joiriing academ- ics with activism injected an exciting, inclusive energy." The interdisciplinary. conference included fifteen additional sessions in which- 50 ,graduate~students. from all over the UC system'presented re- search papers from their ILE-funded projects. The session.topics included: Gender :and Labor, Labor and Political Discourse, Migration and I,Uage Structure in,Mexico and the U.S.-, Labor and.Edu- cation, Case Studies of Key Sectors in Los Angeles, Wbite-Collar. `Fork 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 - Wage Move.'ment and; Questions fsl Researchers" Conference presentations and discussions explored the 'impact of living wage ordinances • on workers, firms, and ,lo:cal govern- menu The present- ers included 1Vhchael Reich ILE Research ^ t Chair and Professor 3, of Economics at UC Berkeley;,' David Runsten, aresearcher, David. Runsten at the 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 Valenzuela (Urban Plan- ning and Chicano 'S.tudies, UCLA); Dana Frank, (American Studies, UCSC), Michael B:urawoy (Sociol- ogy, UCB); Judy S't'epan-Norris (So- ciology, UCI); David Fairris (Eco- nomics,,, UCR); Margaret Weir (Soci- ology and Political Science,UCB); Edna Bonacich (Sociology, UCR); Paul,Frymer. (Sociology, UCS,D)- M:anu:el Pastor .(Latino and. Latin American .Studies, UCSC); Stuart Tarinock (Education; UCB),; Gilbert Go,n'zalez (Chicario Studies, UCI); Peter- Evans (Sociology, UC,B); Nelson Lichtenri•stein , (History, UCSB);,and Carol Zabin (Labor Cen ter, UCB). The ILE: `plans to convene simila conferences: for,gr-a.duate students in future years. 1k,he ILE will release a detailed re, - port 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 col- lection effort on.,union.membership 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 in- cl%ide,chapters auihoredbyILE-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 expansion.froin 1:992-2000, particularly compared with previous periodsnof economic growth. This will, include a comparison between North- ern and Southern California's major metropolitan areas. Employment Practices 'This, chapter will. analyze newly col- lected data from the_ 2001 ILE Cali- fornia Workforce Survey to, docume_nt employment practicesand public at- titudes on a. range of labor; related public policy issues, based. on a sample survey of Californians. he ILE's new postdoctoral fel- Ph.D. in Economics in. May 2002 lowship program recently eom- ,from the University of Chicago, and p'leied its first round of competition. John Logan, who holds a 200'0' Ph.D; The program, designed for recent in History from UC Davin and'is cur- Ph,D.s; will.support a new generation gently' a lecturer in Industrial Rela- of�'scholars engaged ,in research on ti'ons at the London School of. Eco:= issues of, labor 'and emp,foy.m'ent. n- omics and Political,. Science. Dube Each year. the program;,sponsors two will be at. UC_ Berkeley.,and :Logan postdoctoral fellows; one at -UCLA and. at: UCLA. one at UC Berkeley,. Dube is, a labor ecornorn st who ILE Fellows are selected'on a com- wrote his dissertation on `.`N�ew,La- petidve basis and awarded an.annual bor Market. Institutions and .thebis stipend of '$45,50.0 (plus benefits) to-' tribution of Income..". His topic, for gether with a -$3,00.0 research,, fund they postdoctoral year is:"C:ommu- for the.one-year program. Fellows are; nity-Based Organizi"r g:tthe Scope of free of teaching and other adminis--. Collaboration Between <.the Labor. trative duties but'are expec`ted,to. par- Movement, And Independent Worker ti ate in ILE conferences aril pro= Centers:''' s during the ;fellowship yearn. Logan, .is a historian- whose- work w in. 2002-03', the fellows will' be .spans 'a range_ of issues in 'legal and , - receive a labor history. He has published Arindra'it Dube who will . Union Density in California This chapter will present a detailed portrait of the s•tate'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=UK, and has also written on, the :issue of striker replacements. His topic for the postdoctoral year is "Using Public Policy to Revital- ize the Ri6t 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 (computers,;, faculty, libraries, etc.) and work with an ILE-designated faculty mentor in an environment that fosters interdisciplinary learning and collaborative research. IM ■ ■ ■■N■EEEerererrrErerEeser eENE NOON-9 rarnrn■ Nc�r:Er:�Natrrir■NrNE�N - nar7aEEErrr91■-,rr►.lrri N�,i■■SSE■EOrErrrONENSrENS\Orr■■■ONESNSOEEOSESONESSSSOS�1 rrr■rrrirrrE■ErrrerrrrNrEErErm sErr■'r■rrarNErrNrr■■ErrrrrrrrrrrrS'�ErrEEr■■r■ ■.r 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 disabled. per- sons, unionized in 1.99,9 in the single largest organizing victory- for the la- bor movement since 1937. These low -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 Jmproved wages and con= ditions, thanks largely to unioniza- tion and living wage policies. The high turnover levels, that were once typical of the occup ation. have de creased significantly; and this stabi- lization process has in turn led to en- hanced quality of care for.clients. and An ILE Resource: The U B .ILR 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 Library Director Terence. K. Huwe, this facility has been an importarit,source of research, support `for many decades, serving labor researchefs on and.near the Ber- keley campus. With the :expansion- of° its electronic and Web based, re- sources, .the UCR IIR library ;i's in creasingly able to serve as a xesource for the state of California and beyond. Please iee-Library;, page 7' to irnproved living standards for homecare workers themselves. This research was showcased in - Fresno at, the, Feb.r:uary 7 "Quality Homecare,Conference, co -sponsored by the IL.E. More than 15.0 participants came .together to discuss the ,policy is- sues surrounding homecare work. Three stakeholder groups were repre- seated: unions, disability and senior consumer organizations, and the county public authorities who are the employers of -record. Elected officials in attendance included California As- semblywomari Dion Arorier; 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 .DAr), and others from the ILE Homecare Working Group, was a highly effective forum for dis- seminating .ILE research results to the community. In addition to the Ho Reif findings, presentations include one by UCLA Urban Planning profes- sor Jackie Leavitt, who shared the re- sults, of her ILE :fundedparticipatory research on Los Angeles' homecare workers' housing;, transportation, and employment training needs. As _Zabin 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 andl to :conduct interviews. "You getwery high quality data this way," Zabin said. "Not only are the questions sharper, but, respondents tend Ito ,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."in 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. 11 rrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr®errrrrrrrrrrrrrrrrrrrrrrrrrrrr�rrrrrrrrmrrrgrrro�rrrr�am iOr iiiio oMOMMO riii ivi ii iiiirmiiiiiriiriri rri ployers to substitute more high'hy `educated workers for those #Ile" merly employed at lower wages, a phenomenon sometimes called "la-. bor-labor substitution"? What impacts do economic downturns have on the passage of living wage ordinances.? These are among the questions the re- ;s`earchers present at the conference `are investigating. The mix of different disciplines and experiences represented .at- the con'_ference made for a dynamic event. "It's exciting to see academia. 'atten- tion drawn away'from the iv.oty,tower. and theories and toward th'exeaal world;' Fairris said. He plans to,,- con-tinue to b.tiild -a statewide research community on the" living wage"'ques- tion and to compile an ;edited volume on the topic. The library specializes in materials,on labor, employment, and industrial, rela- tions and maintains a print collection of',more-than 70;000 volumes. Thanks, to interlibrary loan, these materials are, available- riot only to local researchers but to scholars throughout the .state of California 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'„ 'researchresources and,. with ILE— sup- port, is currently expan&ftgtliat,.com- ponent of its work. Please visit the site at http://iir.berkeley.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 at the UCB IIR library, pease call (510)642-1705 or e-mail ii.r@socrates. berkeley.edu. eresrr srr��rorrr rr�rr�r��r� rrsr�rr�rrrrrrrrrrrr�rr-� on mannomia i iii iIisaeeiieao®iieoiIeiiiiiiiiiiiiiirrii The ILE is _in the process -of. conside-ring applications for research grants and fellowships for fundingin the'200243 academic year. This, is the third round' of competition for such,awards.'Proposals may involve exploratory research on topics that have not been, ex-fensively studied.in recent years; they may be analytical, they -may be� quad.titarive or qualitative; -or they 'may be concerned vith,p 6licy designappraisal. Applications for. projects on any labor. and and, employmentI topic will be seriously considered; but the ;Institute ,will. give i- special consideration to high -quality re- search proposals that have been developed jointly by.university faculty and labor organizations, ions, community -based organizations, or other ,pio- 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' Advisory .Board. R M., V Fbnapplication covers eets; bud .g et worksheet5,,:cainpus�ptbcediir6s and additional information, including alist of previousgrantees, consult theJL-E,Web site athttp://www�--acop.edu/lile; of Institute for U - bor and Employffierit, -Non-Profit University -of' Cali . fornia Organization U.S. P6ttage UCLA Box 9514-7& PAID Los Angeles, ,CA 900954478 V.G.L.A. XI-4 OF E - -410�) 29 UC BERKELEY CENTERLABOR* UC Berkeley Center for Labor Research and Education Institute of Industrial Relations 2521 Channing Way Berkeley, CA 94720 M Whot Are Our, staff is, made up of a diverse group of individuals with decades of experience working on labor issues. as researchers, educators„ organizers,- and union_ leaders. Our Advisory Board includes_`.Nortliern California labor .leaders, labor educators, conmunty,activists; 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 to: v Organize and represent- workers in new and traditional industries. r • Reach -out to immigrants, young workers, people .of color,. and women. •"Identify and advance policies .that improve low -wage jobs and,narrow income gaps. • Develop a new.and diverse generation of labor 'leaders. Education CALIFORNIA 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 INDUSTRiiAL TARGETING: Training for organizing, directors, officers, and other leaders on how to plan and implement.co"mprehensive, public campaigns. ADVANCED1SKILLS DEVELOPMENT: Training for chief officers and staff oil. 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=monthinternship program that places UG students in unions and community groups for training, research, and on -the -ground campaigns . upport. COMMUNITY SCHOLARS:, A semester -long, seminar in which labor and community organizers collaborate. with graduate students on action research -projects. CONVEININGS- Confererices,.{seminars, and working,, groups that bring, stakeholders together to discuss thigh -priority issues and build consensus .for policy reform. Accomplishments During the past three: years; the Labor Center has; a Provided academic ;research and, expert_ testimony that contributed to the passage of living wage ordinances in California.... e Convened a community sand labor coa_lition- that played a key- role, ,in, advancing the new AFL-CIO policy .on immigration.. Placedd-UC students in two month summer internships: with 58 community and labor organizations. • Incubated innovative immigrant worker-, and young worker organizing '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 ofIndustfial Relations.and the Institute,for Labor -and; Employment (ILE)„a statewWe research program of the University of California.