Eureka chamber says No to citys minium wage initiative Ordinance to go before Eureka voters in November By Lorna Rodriguez lrodriguez@times-standard @LornaARodriguez on Twitter Posted: 05/22/2014 07:44:24 PM PDT0 Comments The Greater Eureka Chamber of Commerce has announced it is opposing the proposed Eureka Fair Wage Act, a November ballot measure which would increase the minimum wage to $12 at some city businesses. We havent taken a position on the wage dollar amount. Our opposition is to the fact that its Eureka only, Executive Director Don Smullin said. In looking at the legal text of the fair wage act, we have a lot of questions which the city attorney wasnt able to answer because the council hasnt directed her to do so. The chambers questions range from how businesses which have multiple locations both in and outside of city limits would be affected to what happens if an employer hires extra employees for the holiday season to who would enforce the ordinance, Smullin said. The proposed fair wage act, also known as the Minimum Wage Ordinance, would require employers within Eureka city limits to pay their employees at least $12 an hour. The initiative would exempt small businesses with 24 employees or fewer, and nonprofits would not be included for the first 18 months. Californias current minimum wage is $8 an hour, but that will increase to $9 an hour on July 1. Next July, it will increase by another dollar. Smullin said the chamber is also concerned that businesses may move outside of city limits to the surrounding areas of Bayside, Cutten or Myrtletown. Theres a great opportunity — for businesses that can — to move out of Eureka, he said. Its a great opportunity for businesses looking to come to Eureka to locate outside of Eureka and still adjoin Eureka. In general, it puts Eureka in a noncompetitive position with the county. Fair wage act proponent Verbena Lea disagreed. Clearly, the chamber didnt research, Lea said. They didnt look at empirical data. They didnt do anything but repeat this old, tired scare tactic lie, which is that the sky is going to fall if people are paid a fair wage. We want the fair wage act because people deserve to make fair wages, lives will be improved, our communities will be more thriving, she added. Our economy will improve, as weve seen in every place where people have voted for a higher minimum wage, and its the right thing to do. Humboldt State University economics professor Erick Eschker said theres a bit of a debate among economists about the impact of minimum wage laws. The negative part of minimum wage doesnt always materialize, Eschker said. You dont always see a lot of workers being laid off. But, he said, Eurekas proposed increase is very large. You typically dont see that, Eschker said. When they raise the minimum wage across the country, or within the state of California, its typically not that high all at once. Thats a little bit unusual. With a big jump like that, you might see more of that job-loss effect. Eschker also said there are better ways to help low-income people than increasing the minimum wage. A much better way is to have, for instance, an earned income tax credit, and to use the income taxes to give credit to people who are low-income working, he said. Raising the minimum wage is a blunt instrument. Its a bad way to help out the low-income households, because a lot of people who earn minimum wage are teenagers on summer jobs. College of the Redwoods economics professor Michael Dennis agreed. He said economists favor giving low-skilled and low-wage workers the skills to make a higher wage on their own, or offering subsidies rather than forcing business owners to pay higher wages. It kind of seems strange to place the burden on the people who are already employing low-skilled workers, or the customers patronizing the business where the low-skilled workers are working, Dennis said. If Eurekas ordinance is passed, the evidence is mixed on what could happen, he said. On the face of it — it would just make sense — if you charge a higher wage, employers are going to hire fewer people, or are going to substitute machines for people, or are going to relocate out of city limits, Dennis said. But the evidence is actually relatively weak for that. Proponents of the act say cities where the minimum wage has been raised have seen an increase in employment and a stronger local economy. The Eureka Fair Wage Act will give Eureka a competitive edge, Lea said. Humboldt County Board of Supervisors 4th District candidate and former Eureka City Councilman Chris Kerrigan said he supports the proposed ordinance. I have a very strong belief that if someone is willing to work, they ought to be able to afford a good quality of life, Kerrigan said. For somebody who is working at minimum wage, theyre taking home approximately $1,200 a month working full time. Its really hard to make a living taking home just $1,200 a month. He added that four of the top five employers in Eureka are large corporations, such as Target, Walmart and Kohls. When working folks have more money to spend, they stimulate the economy with demand, he said. Thats why the studies have shown that increasing the minimum wage is beneficial to the local economy. Not only is it fair for workers and helps lift people out of poverty, it also stimulates the local economy and creates more jobs. Mayor Frank Jager said he is neutral on the proposed ordinance until he finds out all of the effects. My attitude right now is its for the voters of Eureka to decide, Jager said. Whatever they decide, the city council will go forward to implement it. Contact Lorna Rodriguez at 441-0506.
Posted on: Fri, 23 May 2014 06:03:01 +0000
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