Minimum Wage address to Tuscaloosa City Council

This was given to the Mayor and City Council on February 9, 2016.

I am here before you tonight because I am confused by the city’s legislative agenda as it pertains to item 16–Minimum Wage Legislation.

It reads: Minimum wage determination should be controlled on a state or federal level rather than the local government level. Local government determinations of minimum wage could lead to unintended consequences for those who are low to moderate income, as well as have negative economic development impacts for local government. 

In order to reduce the likelihood of poverty and keep wage rates current, the City supports adjustments of the minimum wage rate where there is a cost of living adjustment that is tied to the consumer price index. 

This legislative agenda was passed on January 26th

I am confused because when Mayor Maddox and a few members of the council met with the coalition on January 27th; we were told that the city wanted to study this issue by setting up a task force with Northport and the County.  Why would the council state that to us, when there is clear indication in the city’s agenda that the city has no intention to pursue what is in the best interests of the people of Tuscaloosa?

Consider the words of the Prophet Malachi:  I will draw near to you judgment; and I will be a swift witness … against those who swear falsely, and against those who oppress the wage earner in his wages, the widow and the orphan…” 

You serve the people of this city.  Now I am not a literalist when it comes to scriptures but I view the judgment as a metaphor of what is coming. Perhaps you are not seeing it as clearly as I do–before I became a minister I was a clinical specialist that examined behaviors.  In my opinion, the judgment comes in the way of a crisis for our citizens.

17,000 people are desperately trying to make ends meet on an hourly wage that does not cover the rent, does not cover childcare, does not put food on the table, does not give them access to preventative health care.  They are forced to seek public assistance in attempt to make ends meet; which in our culture is a shameful act.  The coalition has heard from these families and it breaks my heart, especially when there are city solutions that can be taken.

When people are in a desperate situation that boxes then into a corner they begin to choose options harmful to themselves and to the community.  They steal food.  They steal items to sell for cash.  They resort to violence.  Domestic violence occurs because they are frustrated and angry at themselves for not being able to provide for their families.  They get arrested.  Police are placed in situations where unarmed people are shot.  We have already seen this happen in Tuscaloosa.

A pastor recently said, we are one gunshot away from being another Ferguson. We have a crisis here.  The city agenda speaks of unintended consequences, consider the unintended consequences of passing the buck.  The unintended consequences of passing the buck is more people choosing behaviors that cause physical harm and possible loss of life.  These will continue if the city council refuses to do the right thing for its citizens. It is already escalating. Good people in desperate situations are choosing poor behaviors to address immediate basic needs like food and shelter.

You do have the authority given to you by the state or the state would not be seeking to prevent that authority to act on behalf of the citizens of this community.  You have been given studies that show that raising the minimum wage benefits the local economy with increased tax revenue because the working poor spend their resources locally.  That is increased revenue in  your city’s budget.  It is good for business becuse increased wages reduce staff turnover which any business owner can tell you, it is more expensive to train new staff than to keep staff.  Every single state and city that has done this has prospered.

Further, you have the backing of the US Department of Labor to act on behalf the citizens.

Not acting with your authority will result in increased suffering in this city, in your heart of hearts you know this.  I close with one more quote, this from Apostle James, the brother of Jesus: If anyone, then, knows the good they ought to do and doesn’t do it, it is sin for them. 

You are committing a grievous sin against your own conscience by refusing to do what your own words declare is right.

$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)