October 23, 2015

Dear Council Colleagues,

For more than a year I have worked tirelessly on how to ensure that we have a thorough discussion about wage inequity in our community. In that spirit I present this packet as a policy framework to begin a more formal conversation in Olympia and the broader region.

The upcoming study session about scoping a minimum wage conversation in Olympia is the beginning of a conversation centered on workers and how they fair in the workplace in regards to wages, sick and safe leave, and predictability of schedule.

I want to absolutely clear that this is presented in the spirit of partnership and focuses on what is best for our community, small businesses and low wage workers. Also, it is important to note that this should not be seen as a stand-alone policy as it goes hand in hand with our work to increase our economic prosperity through:

Attracting and preserve living wage jobs, and Developing a stronger and more diverse workforce by growing training and

apprenticeship programs.

Only when we have a balance of strong base wages, living wage jobs and workforce development will we truly succeed in this work. To that end we must remember that our partnerships with organizations like the Chamber of Commerce and the Economic Development Council, and others, are essential if we are to reach that balance.

Many are of the opinion that policies such as this must be done regionally to minimize any negative impacts on Olympia’s Economy. I agree 100%. In fact the best path forward would be for a federal, statewide or regional adjustment to the minimum wage to bring it in line with a survival budget in the current day and age. Absent of that I believe Olympia has a paramount duty to its residents to have this conversation and should push ahead whether others will join us or not.

Imagine for a minute you are a 38 year old single mother working for less than $15/ hour, you are similar to nearly 2/3 of the Olympia low wage workforce. In Olympia 33% of our workforce make less than $15/ hour and near 60% of those low wage workers are women. There are also disparities when we look at race compared to wage.

When we look at where people work there is a story as well. In Olympia the majority of workers employed in retail and food services are paid less than $15/hour. Together, these two industries employ a combined 19.1% of the citywide workforce — a bigger share than government alone does! These industries also have high shares of part-time workers.

Even with some minimum wage growth rents in Olympia have become out of reach even for full time minimum wage workers. In 1990 when median rent was $385/ month and the minimum wage was $4.25/ hr it took 70 hours of work to pay the rent. Today the minimum wage is $9.19/ hour and the median rent is $923 making it so minimum wage employees have to work 77 hours per week to pay the rent. And that is without taking into account the significant inflation in the costs of food, childcare and transportation.

As developed working with a broad coalition of worker and community organizations this policy framework addresses the largest inequities in our local workforce and is meant as a starting point for a broader (and hopefully regional) community dialogue. The main components of the proposal are below and the complete framework is attached.

Phase in a $15 minimum wage over two years for large companies, and over four years for smaller employers. Currently, one in three Olympia workers is paid less than $15.

Provide paid sick & safe time for all workers. About 1 million workers in Washington State don’t have any paid sick time, including large numbers who work in food service, retail, and healthcare. 

Ensure work schedules are compatible with family, school, and life by requiring 11 hours of rest between shifts, 3 weeks notice of schedules, and ensuring current employees have a chance to access additional hours before other employees are brought on.

There is a large body of evidence that policies such as this are good for the economy and that the negative consequences are negligible. Attached you will find a demographic and wage analysis of Olympia and below are a few links I believe are useful in preparing for a conversation.

University of Washington Study on minimum wage, Commissioned for the City of Seattle can be found here.

University of California at Berkley Study on minimum wage can be found here. The 2015 poll of Olympia voters about minimum wage can be found here.

While there is much evidence of the positive impacts of increasing the minimum wage there are still several questions that need to be answered before we can move ahead with any kind of decision.

What are the true cost implications to our smallest businesses? What are the cost implications for the City in regulation and enforcement? Who would benefit from this and what is the right minimum wage for Olympia or

the broader region? What differences in outcomes could we expect if we move ahead as a region or if

Olympia acts alone? Are our neighboring city jurisdictions and the county willing to join us at the table

for this essential conversation?

What legal review, research and revision is necessary to reduce the cities liability if it implements a framework such as this?

What else don’t we know?

It is my hope that we can begin our work by answering these questions, and more, on a regional basis. Let’s begin by pulling together a research request to answer our collective questions while engaging with with Lacey, Tumwater and Thurston County to see if they are interested in working together with us to refine a regional approach.

I look forward to working with you all on this important conversation. Thanks so much for taking the time to review this work.

Jim