A proposal to create a living wage of $12.30 an hour for city workers and employees of companies doing business with the city has the sweet sound of reason, but will, in effect, result in many businesses choosing to no longer conduct business with the city.
The proposal before the city council would require the living wage for city employees and for companies to pay that wage to employees when working on city business.
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Proponents argue, rightfully so, that it is difficult to support a family on the minimum wage. And opponents argue, rightfully so, that imposing a living wage, double that of minimum wage, would be too much for their businesses to handle.
Sarah Zacks, who owns Books on the Square, said she understands the concerns of those advocating a living wage, but adds that if it is imposed she will be forced to stop working with the city.
“I cannot pay these salaries,” she said. “I do not make enough money.”
Therein lies the dilemma. For if the living wage were enacted, Zacks and others in similar positions would simply choose to no longer do work for the city. That limits the city’s pool of vendors, creating a less competitive environment, while also resulting in a loss of business for Zacks and the likelihood that some workers would lose their jobs because of the lost business.
Not only are proponents advocating the minimum wage, but they are also asking for an additional payment if a company does not provide certain benefits to employees.
Among the arguments advanced by proponents is that some 52 cities around the country have adopted a living wage ordinance, although not necessarily of the magnitude proposed in Providence. What they don’t say is that thousands of other cities have chosen not to enact a similar ordinance.
The living wage, is in fact, a hidden tax — one that will ultimately be passed on to taxpayers. Any added costs will surely be built into city projects and passed on to the consumer.
While we understand the plight of the working poor, we believe that this ordinance would not serve the city well, and could result in some hardships for area small businesses, maybe even jeopardizing their very existence and costing some lower end workers their jobs.
