Life’s tough at the edge of the economy
The California legislature recently approved increasing the
state minimum wage by $1 an hour. Analysts expect that Governor
Schwarzenegger, who petitioned for the boost earlier this year,
will veto the approval.
Life’s tough at the edge of the economy
The California legislature recently approved increasing the state minimum wage by $1 an hour. Analysts expect that Governor Schwarzenegger, who petitioned for the boost earlier this year, will veto the approval.
The governor backs higher wages but fears that passing legislation now will appear to tie wage increases to inflation.
Also known as indexing, this would pave the way for what he believes will be automatic adjustments to the minimum wage without the proper consideration needed.
The approved raise would be in two 50 cent increments over the next nine months.
The commission’s last increase was in January 2002. Since then, inflation has risen 14.34 percent. The California Labor Federation reported that from 2000 to 2005 the price of gasoline rose by 44 percent and milk by 23 percent.
In order to restore the purchasing power of minimum wage to its 2002 level, the suggested raise would have to be at least $1.11.
“The minimum wage is determined by whether the rate is adequate to the supply cost of proper living,” the Labor Federation wrote. “$6.75 is inadequate to supply that cost.”
Roughly 1.4 million Californians live on minimum wage, but the non-partisan Public Policy Institute of California reports that over 6 million are living below the poverty line.
Stanford University’s “Race and Poverty Rate in California” study reported in 2002 that San Benito County alone has 10 percent of the population living below the federal poverty level.
As pending wage legislation currently exists, the San Benito County Chamber of Commerce has no official stance on the matter. “It’s great that community members would receive a raise, but there are many local businesses out there that would find it difficult to absorb the expense: especially if it’s an ongoing thing,” county Chamber of Commerce President Frankie Valent-Arballo said.
Two studies made independently by UC Berkeley and the California Research Bureau on the 2001 wage raise showed little effect on California businesses, but did help to move workers out of poverty.
Some businesses, however, oppose raising the minimum wage because it would reward workers without justification.
“Keeping the wage where it is at gives me the ability to provide raises for people who deserve it,” Papa Murphy’s owner Victor Gomez said.
Hollister Speedee Lube owner Nader Javid views it differently. “The minimum wage must go up. It is so expensive to live here, even working 40 or 50 hours a week,” he said. “I know the business will suffer but that’s OK.”
For those who are actually living off of minimum wage, the reality of needs is much more complex.
Faustino Garcia is 18 years old and balances working at a local fast food restaurant with summer school. He goes to school during the day then works until after two o’clock in the morning. Despite clocking an average of 40 hours each week, he still struggles to make enough.
That is because Garcia’s paycheck goes towards paying the rent, paying off his car, insurance for the car, the phone bill, and groceries for his mother. Garcia’s two older brothers, one of whom also earns minimum wage, do the same.
“It’s a good point that minimum wage is good enough for people to learn skills and gain experience for a better job, but not everyone has that kind of an opportunity,” Garcia said.
Maria P-, who wished to remain anonymous for fear of losing her job, is a single mother of four also living 25 cents above the minimum wage.
In order to stay afloat, Maria relies heavily upon social services. The Hollister Housing Authority alone pays for over 85 percent of her monthly rent. “If it weren’t for the Housing Authority, I don’t know what I would do,” Maria said.
When Maria first started her current job, her employer told her she would receive a raise within a few months. “Six months later and I still haven’t seen anything,” she said. “I’d like to take the time to work my way up and gain experience, but sometimes you just need a job fast. Everyone’s circumstances are different.”
Although she would like to have a day off, every penny counts. “We only get Thanksgiving and Christmas off. Sometimes I will take a day off but the checks are so little. Even being a half hour late really makes huge a difference. It all adds up.”
