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Tue, Jun 12, 2001 - Page 21 News List

`Living wage' rules debated in US

LIFTING THE BOTTOM Having seen the purchasing power of the minimum wage drop by some 21 percent over the past 20 years, the campaign is gaining support

BLOOMBERG , RICHMOND, VIRGINIA

"Now that these folks make a livable wage we don't have as much turnover, we don't have any overtime, their performance has been a lot better," Corti said. The company didn't raise wages before the law passed because of concern it would be underbid for city contracts, he said.

Other businesses have seen costs rise.

Extra staff time needed to handle paperwork resulting from a wage law has cost LK Management US$32,000 a year, said owner Lynn Kastella, whose firm provides property management for buildings owned by the city of Tucson.

The city's costs have risen, too, because contractors have passed through most of the increase in wages, said Ray Valdez, who monitors compliance with the wage law.

Neumark's study found that some workers would lose their jobs or face reduced work hours under such wage laws. "As long as the increased wages don't get completely passed through, employers are going to economize on low skilled labor," he said.

That's what the Employment Policies Institute argues in opposing the laws.

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