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HERE’S WHY
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THE TEXAS STATE MINIMUM WAGE IS NOT A LIVING WAGE FOR EL PASOAn El Paso adult with one child and working full time must earn $17.02 an hour to support her family in our
city, based on our local cost of living. An adult with two children must earn $20.96; two adults with one
child—$15.97. (Source: Massachusetts Institute of Technology and Dr. Amy Glasmeier, 2014)
EL PASO HAS NO FUTURE AS A LOW-WAGE CITY IN A LOW-WAGE STATETexas has the largest number of low-wage workers in the United States. El Paso’s wages are even lower than most other sections of Texas. The state refuses to raise its minimum wage, which at $7.25 is below the poverty level. Worse, one of every �ve El Paso workers is paid less than the minimum wage! Only 6% of Texas’ workforce has a union and collective bargaining rights. As a result, all the market pressure is
to push down on wages because workers have no way to push up their wages and living standards. (Source: Economic Policy Institute, 2014)
Poverty in the US Reaches a 52-year Peak
In the United States, the top 1 percent has 35.6 percent of the wealth. Of 141
countries in the world, the U.S. now has the third worst wealth inequality.
LOW WAGES DRAGS DOWN THE EL PASO ECONOMY AND KEEPS ALL WAGES LOWRegistered nurses’ hourly mean wage in the US (May 2013) was $33.13. But in El Paso, RNs’ mean wage is only $30.33. A low-wage economy creates lower wages for even those jobs that should pay relatively well. Our El Paso communi-ty shows many of the problems caused by an economy based on low wages: high family poverty rates, low education levels, poor health, and lack of health insurance. (Source: Bureau of Labor Statistics 2012 and Bloomberg BNA, 2013)
MOST LOW-WAGE WORKERS ARE WOMENWomen in the US are more likely to work at jobs that are low-paid and offer few bene�ts. Women working full time are paid only 77 cents for every dollar paid to male workers (in 2012). Raising wages would bene�t millions of women and children, and help reduce the wage gap between men and women workers. In the El Paso Congressional District, if the living wage went up to only $10.10 an hour, one in three women would get a raise. (Source: Oxfam America, 2014)
i sn ’t th is n ice?
just the two of us,
worker and boss.
no union to come between
us.
you with your
grievances, me doing whatever
the #%&+I want.
2 0 1 4
Today 11.3 percent of workers are in unions. In the 1950s it was 35 percent.
EL PASO TAXPAYERS SUBSIDIZE LOW-PAYING EMPLOYERSWhen employers don’t pay their employees enough to live on and families must turn to various government programs for assistance, the government is
essentially subsidizing these companies. Low-paying employers cut payroll and increase pro�ts by not paying a living wage, and the taxpayer makes up the difference.
EL PASO WORKERS SUBSIDIZE TAX BREAKS TO THE WEALTHYWhen the City hands over a tax break to build a ballpark or a hospital, or to grant tax waivers on commercial property, it essentially transfers money that could be used for wages to already wealthy individuals and corporations. As just one example, while
homeowners paid taxes on the market value of their homes, the largest commercial property owners got tax breaks that cost El Paso $220 million in lost tax revenue over the last �ve years. (Source: Real Value for Texas 2014, the Houston Chronicle, and the Texas Association of Appraisal Districts)
WAGE THEFT DRIVES ALREADY LOW WAGES EVEN LOWEROne in every eight low-wage workers in El Paso is a victim of wage theft–un-paid overtime, illegal wages that are under the state minimum wage, working off the clock for no pay. Back in 2011 the City recognized the problem and tried to stop wage theft with a new law. This law has proven to be too weak and cheating employers continue to steal wages from El Paso workers.
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HERE’S HOWTHERE ARE SOLUTIONS. MORE UNIONS AND COLLECTIVE BARGAINING FOR ALL WORKERS IS ONE. A LIVING WAGE/WAGE THEFT CITY ORDINANCE IS ANOTHEROur city-elected leaders have an obligation to act on this problem, and have the power to do so. We have proposed a city ordinance with two key elements:
(1) The City's Living Wage• All employees of the City will be paid a minimum of $15 an hour by the year 2017.• All companies seeking a city contract will ensure that the applying company and its subcontractors
pay their employees $15 an hour for the work sought.• All companies seeking a permit, license, or business incentive from the City will ensure that the apply-
ing company pay their employees $15 an hour for the work sought.(2) Fighting Wage Theft
• The City will create a wage enforcement coordinator to investigate violations of the Living Wage Ordi-nance and wage theft matters.
• The coordinator will also maintain a City database of employers who have had administrative levies, �nal civil judgments or criminal convictions in the last �ve years for wage theft-related violations. These employers will not be able to seek City contracts, permits, or licenses for �ve years.
EL PASO’S VISION FOR THE FUTURE: RISING INEQUALITY OR WE ALL LIFT UP TOGETHERWhile our elected of�cials have set lofty goals for El Paso’s future, as long as El Paso’s greatest commodity is its low-wage labor force, these goals are unattainable. Improving El Paso’s quality of life truly begins with raising low wages through city and county legislation, by encouraging collective bargaining, and by preventing wage theft.
*Graphics and cartoons courtesy of the UE News and UE cartoonist Gary Huck