Still two sides of the minimum wage hike

By Dave Schwab

Now that the city has passed a new earned sick leave and (higher) minimum wage ordinance, questions remain as to its implementation — and whether it will fulfill its intent.

On June 7, in unofficial results, San Diego voters passed the Prop. I minimum wage measure by a margin of 183,261 in favor (63.24 percent), to 106,521 opposed (36.76 percent).

With the proposition’s passage, San Diego’s minimum wage will increase almost immediately to $10.50 an hour, and go to $11.50 an hour on Jan. 1. The measure also provides five days of annual paid sick leave.

District 3 Councilmember Todd Gloria, who spearheaded the measure, said the city will deliver on the ballot initiative’s objective to aid the unemployed and underemployed.

“That’s when the city’s minimum wage will go from $10 to $10.50,” Gloria said, noting that the new ordinance will be certified on July 11.

“There are a lot of good reasons for it,” Gloria said.

Pointing out California’s economy is the “sixth largest in the world,” Gloria added, “The cost of living in San Diego is very high, which is very different from some other areas in the state.”

He cited El Centro in Imperial County, as just one example to dramatize socio-economic differences region-wide.

Gloria said the new ordinance will have a positive impact on nearly 200,000 San Diegans.

“Our projections are that this will inject about $200 million into the local economy, which is why 63 percent of San Diegans voted to approve it,” he said.

On June 21, the San Diego Budget and Government Efficiency Committee, which Gloria chairs, discussed establishing an enforcement and administration office to implement the new ordinance. It will include establishment of a system to receive and adjudicate complaints in the case of violations.

The city’s recently approved FY 2017 Budget also included a $400,000 allocation for implementing the earned sick leave and minimum wage increase ordinance.

But not everyone is happy with the new minimum wage and sick leave ordinance — or believe that it will actually create more jobs or give people in need more disposable income.

Mayor Kevin Faulconer and former mayor and Greater San Diego Chamber of Commerce president, Jerry Sanders, both opposed the minimum-wage hike.

“As mayor, my job is to cultivate an atmosphere that creates economic opportunities and good-paying jobs for all San Diegans,” Faulconer said. “This ordinance puts our job growth in jeopardy and will lead to higher prices and layoffs for San Diego families. … We should be looking for ways to create more jobs, not putting up roadblocks to opportunities.”

Sanders concurred.

“An increase in the minimum wage of this magnitude would be detrimental to San Diego jobs, the economy and small businesses, and would put our city at a competitive disadvantage as compared to nearby cities not affected by such an increase,” Sanders said.

For those claiming the minimum-wage hike will actually cost jobs, Gloria had an answer.

“Data shows that in cities where the minimum wage has been increased, unemployment has actually gone down,” he said.

Asked if passage of the minimum-wage hike was the crowning achievement of his political career in San Diego, Gloria, who’s in the running for Toni Atkins’ State Assembly seat, replied, “It’s certainly on the list of things I’m most proud of, as well as the passage of the Climate Action Plan.”

The son of a gardener, Gloria noted that it’s been particularly gratifying for him to have people tell him how much the new measure will improve their lives and how meaningful it is to them.

“I’m most proud of the things we’ve [City Council] done that have had a [positive] impact on people,” Gloria said.

Now that Proposition I has been passed, Gloria added that it will be essential “to get the word out to the public and employers that this is now the law, and that everyone knows their responsibilities under it.”

In the future, Gloria said it will be critical to ensure people’s ability to legally challenge whether or not they’ve received their fair share of wages.

“People need to know they can seek redress if they feel they’ve been cheated out of their pay,” Gloria said.

— Dave Schwab can be reached at [email protected].