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