$10.10 Wins

When word that Birmingham, Alabama city council had decided to establish a minimum wage of $10.10, people in Tuscaloosa began to wonder can we also establish a minimum wage of $10.10?  The answer is yes.

In a state where the poverty rate is 18.7% and nearly 2.5 times that for single parents with children at 45%, this becomes an easy fix.  35.6% of jobs in the state are low wage jobs. Montgomery, we have a crisis.  It is no wonder that the State is crying broke. Raising the minimum wage would increase the revenues in the state to provide services.

Alabama currently has no set minimum wage and so it is only those positions that are covered by the Federal minimum wage act that are required to pay the current federal wage of $7.25.  But let’s look at that figure for a moment.  In 1968, the federal minimum wage was $1.60.  If this was kept in line with inflation it would today be $10.90.  $7.25 is less than 50% where it should be.

The poverty level for a single parent with two children is $19,700.  If the parent works full time at $8.50 an hour, they only make $17,500 per year.  This means the parent needs to receive assistance from food stamps and other public assistance. No person working full time should live in poverty.

If that parent earns $10.10 an hour they make $21,000 a year and become eligible for health care insurance for $50 a month through the Federal Marketplace.  Every dollar per hour increase equates to $150 per month after taxes to an employee.  An $8 an hour employee will earn $300 more per month at $10.10.  $300 more per month can save a family from relying on pay day loans that charge extortionist interest rates.

Every one of the 29 states and 15 cities where the minimum wage has been raised have been scrutinized and studied and reveals that over 90% of those studies reveal no job loss and no increase in unemployment. In fact a 2014 study by Integrity Florida showed 25 states and 5 cities  had higher job growth than states and cities that did not raise their minimum wage. Raising local wages benefits the local economy as lower wage workers tend to spend their money locally where as corporations take profits out of the local economy to invest all over the world.

But what about Tuscaloosa?  Based on a report by National Employment Law Project (NELP) 73% of nationwide enrollments for public assistance are from working families. 89% of small businesses already pay more than the minimum wage.  60% of businesses support an increase to $12.00.  In Tuscaloosa, 17,570 people are earning less than $10.10 per hour.  The average median wage in the top 25 occupations with the largest number of employees is $8.92 per hour.

Tuscaloosa, just like Birmingham, already has the legal authority to establish a local minimum wage. Alabama has no minimum wage law and has no law prohibiting municipalities from the establishment of said laws, therefore Tuscaloosa has the legal authority under its broad police powers to establish reasonable regulations providing for the general welfare of its citizens. The experiences of other states suggest that such a regulation would survive a legal challenge.

Birmingham’s ordinance makes sense for Tuscaloosa.  It is being phased in over two years, July 2016 the minimum wage raises to $8.50 per hour, which similar to Tuscaloosa, most of Birmingham small businesses already pay wages of about that amount. In January 2017, the minimum wage would raise to $10.10 per hour.  Then every January 1, thereafter, the minimum wage would increase if there is an increase in cost of living.  It is a winning proposition!

It raises people out of poverty.  Removes people from the state welfare assistance rolls because they are able to meet their basic needs. It enables people to qualify for health insurance through the Affordable Care Act. It expands local economies with the additional income being spent locally.

To pass a $10.10 minimum wage ordinance in Tuscaloosa requires a strong coalition.  On Tuesday, September 1, Move to Amend-Tuscaloosa and Work Together Alabama hosted a meeting for interested parties at the Unitarian Universalist Congregation in Tuscaloosa.  There will be another meeting on Wednesday, September 9, 2015 at 6 PM to 7:30 PM at the Unitarian Universalist Congregation to further this initiative.  The congregation is located at 6400 New Watermelon Road, Tuscaloosa, AL 35406.   Please join us!

(Facts in this post are from a fact sheet provided by Engage Alabama, 5184 Caldwell Mill Rd, Suite 204-191, Birmingham, AL 35244)

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One Comment

  1. So true! I really appreciate how you included all the numbers here. I’m sure it took some time to do the research, but it was helpful to me to see those. Thank you from a UU in Portland, Oregon.


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