07-31-00 Council Meeting minutes

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SPECIAL MEETING JULY 31, 2000 SUMMARY REMARKS IN OPPOSITION OF THE LIVING WAGE PROPOSAL Mr. Juan Manigault informed the Council that he is speaking on behalf of the majority of Commission members who were opposed to the implementation of a Living Wage ordinance. Mr. Manigault noted that the concept of a living wage is very complex and emotional and in their review of ordinances from around the country they realized that there was very little objective data available to analysis the impact of living wage ordinances in the community they were intended to serve. Living wages range from $6.22 in Buffalo, New York to South Bend's wage of $10.00. There is a wide range of discrepancies around the country. Mr. Manigault noted that his personal experience tells him that there is a relationship between wages and skills. A living wage sets an artificial ceiling for wages without a corresponding requirement for skills. He noted that sixty per cent (60 %) of the commission members voted against the Living Wage ordinance. The proposed ordinance is the most inclusive of any reviewed in that it contains elements from other ordinances from across the country. It did not look at our community and what has to be done in South Bend. The proposed ordinance has the highest cost of living adjusted wage rate of any ordinance studied. The ordinance as proposed is not specific as to who is covered and who in not. In conclusion, Mr. Manigault stated that both sides would be willing to look at alternative ways to achieve this outcome. Mr. Hollis Hughes, Jr. stated that he and Mr. Kenneth Perrin served as co- chairs of the Living Wage Task Force. The group held its first meeting on November 10, 1999 and continued meeting into June of 2000. There were twenty -seven (27) members that were appointed to the Committee. At the conclusion of the process it was felt that all members of the committee were convinced that they knew what was right and best for our community and acted accordingly in their votes. He noted that the committee was divided into four sub - committees to look at the various components of this complex issue. It was the view of the majority that South Bend should not propose the ordinance as submitted nor any other. MAYOR LUECKE'S RECOMMENDATION AND PRESENTATION OF THE FORMAL WRITTEN REPORT Mayor Luecke thanked Mr. Hughes and Mr. Perrin for their leadership and noted that Council members should have received a copy of the Living Wage Study Committee final report with attachments. Mayor Luecke noted that he will support the recommendation of the Living Wage Committee that the City not enact a living wage ordinance. Mayor Luecke outlined some of the objections to the ordinance which were presented and some of the changes that could have been made. He stated that in place of a living wage ordinance he proposes a number of things which include a rewrite of the tax abatement ordinance and working with the community to develop a career center. Mayor Luecke recommended that the City find common ground to help all move forward in terms of providing good paying jobs in the community, opportunities for the working poor to advance and to be able to earn a sufficient income for themselves and their families. PUBLIC COMMENTS: Mr. Federico W. Thon, Owner, Thon Steel, LLC, 1500 South Grant Street, South Bend, Indiana, noted that he is a minority community activist and his employees are all minorities. He stated that the Living Wage ordinance is a mistake and would hurt the people it was meant to help and he is therefore opposed to the ordinance. Ms. Ann Puzzello,1247 East LaSalle, South Bend, Indiana, wondered if the City employees that do not make ten dollars ($10.00) an hour are all women. She noted that she is a schoolteacher and sees a lot of children who are on the reduced lunch program. She stated that no person should make less than ten (dollar s($10.00) an hour and she is in favor of the ten dollar ($10.00) living wage. Ms. Rebecca Johnson, President, NAACP, voiced her concern that the committee did not look at alternatives but just the draft ordinance that was presented to them. She stated that the City does need a living wage.