Loopholes sideline living-wage proposal in St. Paul

Labor, social justice and community groups pushing for a meaningful living-wage ordinance in St. Paul have persuaded council member Lee Helgen to shelve the proposal until loopholes are resolved.

“When we pass it, it’s going to be a real living-wage law,” said Ryan Greenfield, executive director of Progressive Minnesota, which is coordinating the coalition known as the Living Wage Yes! Campaign. “When we get it done, we want to get it done right. We’re not going to support a living-wage law that’s not everything it’s supposed to be.”

Unions and coalition partners object to proposed language that makes it to too easy for companies to avoid living-wage requirements, said Shar Knutson, president of the St. Paul Trades and Labor Assembly.

For example, draft language would exempt part-time, seasonal and temporary employees; has vague definitions of what constitutes health insurance; and allows too many waivers, Greenfield said.

“The result left too many people behind,” Knutson said. “The exemption process was too loose.”

Exclusions take teeth out of proposal
The loopholes came out of Mayor Randy Kelly’s office, Knutson said, in response to the Chamber of Commerce.

The coalition is seeking an enforceable ordinance that requires most companies receiving city contracts or “substantial public funding” to pay workers at least $12.09 an hour, which is 130 percent of the federal poverty guideline for a family of four. That is also the level at which families no longer qualify for food stamps.

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Public subsidies covered include tax breaks, direct grants, land that the city gives away or sells at less than market value, and other forms of public support.

As an incentive for companies to provide real benefits, Greenwood said, those providing health insurance would be required to pay only $10.23 an hour, which is 110 percent of the poverty guideline. But Kelly’s definition of health insurance is too broad, he said, allowing companies to qualify for the lower rate even if their health plans don’t provide any real coverage for workers earning $10-$12 an hour.

Similarly, Greenwood said, the mayor wants to exclude just about any job that isn’t full time, and to provide additional ways for companies to gain exemptions from the living-wage requirements.

“The problem is, if any company coming to the city knows it can get a waiver, they will get one,” Greenfield said. “If this is about responsible public spending, if companies want a handout, you need a tight, enforceable waiver ? if you have one at all. You could drive a semi through the waivers the mayor proposed.”

Organizing pressure
Shelving the proposal does not mean the coalition is giving up, Knutson said. “We just want to get it in better shape,” she said.

Helgen said he is waiting “for a sense from the coalition of what they want to do” to resolve the issues. The required timetables and public hearings on city ordinances mean a revised proposal probably couldn’t come up for a vote until late October or early November, he said.

That runs into the Nov. 8 general election, he noted, in which Kelly is up for re-election. “So we may just hold off until the first of the year after we see what happens,” Helgen said.

“We’re continuing to organize,” Greenfield said. “This sort of campaign is grassroots.”

As one example, congregations belonging to the faith coalition ISAIAH held a series of “town hall meetings” around the city in August and September, emphasizing the live-wage ordinance and asking council members to support it. A similar meeting will be held for Kelly and mayoral challenger Chris Coleman Oct. 18, from 7-9 p.m., at Immaculate Heart of Mary church, 1550 Summit Ave.

“When people on the council and the mayor hear from people in the community,” Greenfield said, “that’s what provides the will to pass it.”

Adapted from The Union Advocate, the official newspaper of the St. Paul Trades and Labor Assembly. E-mail The Advocate at: advocate@stpaulunions.org

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