|
They work forty hours a week. They
empty bed pans in nursing homes, flip burgers at McDonald's, clean
rooms at Opryland Hotel, care for kids in day care centers, and
ring up sales at Wal-mart. They rely on food banks to help feed
their children, have no pensions, live with relatives in cramped
apartments and don't have a car.
Who are they? People in Tennessee working
low wage jobs. Two out of three are women. Barbara Ehrenreich's
bestseller, Nickel and Dimed: On (Not) Getting By in America
paints a riveting portrait of how they survive.
A full time worker earning minimum
wage of $5.15 an hour will earn $10,712 a year. As the cost of living
has risen, the minimum wage, adjusted for inflation, has shrunk.
Since 1968, corporate domestic profits rose 64 percent while average
earnings dropped 3 percent and the minimum wage fell 35 percent.
The gap between minimum wage workers
and CEOs has become a huge chasm. In 1980, CEOs made as much as
97 minimum wage workers. In 2000, they made as much as 1,223 minimum
wage workers.
Productivity in America grew by 74
percent between 1968 and 2000, but workers did not share these gains.
If wages had kept rising with productivity, the minimum wage would
have been $13.80 in 2000 or nearly $28,000 per year for a full-time
worker.
The Tennessee State Senate just passed
an anti-living wage bill that would prohibit cities from passing
any law that would require a private employer to pay wages higher
than the federal minimum wage. Without a hint of irony, the bill
claims that keeping wages low will help business "attract and retain
the highest possible caliber of employees."
There are a number of problems with
this bill. It hurts hard-working people. It takes away local governments'
decision-making powers. It hurts business. It perpetuates Tennessee's
reputation for being a low-wage, cheap labor state. And, in the
long run, it will cost taxpayers money.
This bill would take away local government
control and allow state government to mandate wage levels across
the state. However, according to the Self-Sufficiency Standard for
Tennessee report, the cost of living varies greatly from county
to county (full report at www.tennesseeallianceforprogress.org).
The Standard measures how much income
is needed for a family of a given composition to adequately meet
its basic needs in each county without public or private assistance.
Costs associated with employment such as transportation, taxes,
food and childcare are calculated as well as housing. The average
two-bedroom apartment costs $364 a month in rural Cocke County but
$660 in Davidson County. The Standard reports that a mother with
two school age kids in Davidson County needs to earn $11.43 an hour
to meet basic necessities.
Higher wages are good for business.
They make it easier for employers to recruit and retain entry-level
workers, reduce turnover and absenteeism, and lower costs associated
with training and recruitment. Paying decent wages results in improved
products, higher morale, and better quality services. Workers who
earn higher wages have more buying power and businesses profit from
this multiplier effect.
Tennessee cannot compete today with
China and Mexico for cheap labor. If Tennessee expects to thrive
in the 21st century, we need to train people to move into the lucrative
high-tech industries. Modern corporations want an educated workforce,
not cheap labor. Tennessee's business community would do well to
support education as tool for economic growth rather than continuing
to sell Tennessee as a cheap labor state.
Low-income workers often need government
help just to get by. They often don't get health care until they
are sick and then go to emergency rooms where treatment costs are
borne by local hospitals. Their children are more likely to drop
out of high school and end up in low paying jobs or in the penal
or welfare system. If they hit a bump in the road, like a medical
emergency, they may become homeless or file for bankruptcy. In the
long run, low wages will cost taxpayers money in government services.
Profitability and economic fairness
can go hand in hand. Everyone who works full time in Tennessee should
earn enough to feed her family and keep a roof over her head. The
anti-living wage legislation has not yet passed the House. Please
contact your state representative immediately and him or her that
House Bill 421 is a bad idea.
This op-ed appeared in the Tennessean
on April 2, the Chattanooga Times-Free Press on April 20 and the
Knoxville News-Sentinel on April 22. Nell Levin is with the Tennessee
Alliance for Progress (TAP). She can be reached at nellrose@earthlink.net.
|