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Los Angeles Times
Santa Monica OKs 'Living Wage' Law
By OSCAR JOHNSON and BOB POOL
TIMES STAFF WRITERS (5/24/01)
The Santa Monica City Council approved a long-debated "living wage" ordinance early Wednesday that would raise the hourly minimum pay to .50 for workers at an estimated 40 large businesses in the city's popular beachfront and downtown districts.
Backers rejoiced over what experts say is a national precedent involving such a municipally approved wage increase for private industry and said the move will help hundreds of workers support their families. But opponents, especially oceanfront hotels, said the fight is not over and pledged a court challenge over the measure's constitutionality.
The 5-1 vote was cast at 2 a.m. after a seven-hour hearing. But that just capped years of complicated battles of ideology and economic analysis.
"It's a real huge milestone," said Madeline Janis-Aparicio, executive director of the Los Angeles Alliance for a New Economy, one of the groups pushing for the living wage. "Oh my goodness, we are ecstatic. We have been working on it for three years."
Some changes were made during the long night of debate. The biggest one reduced the number of businesses that would have to abide by the ordinance, much of which would go into effect in July 2002. Originally, businesses with annual gross revenues of more than million for two consecutive years would have been included, but that threshold was raised to million. As a result, the estimated number of businesses potentially affected dropped from 72 to about 40, officials said.
"We made moderate compromises that will very significantly improve the lot of low-wage service workers in Santa Monica's tourism zone while protecting a vibrant business environment," Councilman Kevin McKeown said.
Voting against the ordinance was Councilman Herb Katz, who blasted it for singling out specific neighborhoods.
"It will end up in court," Katz said Wednesday, echoing what many predict. "This is totally discriminatory in that it only affects the coastal zone."
Opponents of the ordinance argue that most of the city's hotel workers, such as maids, already average about .50 an hour. And they say that food servers in high-end hotels make about a week in tips and additional unclaimed income.
The state minimum wage is set to rise 50 cents to .75 in January.
"You have government interfering in private enterprise, imposing wages that are way above federal and state standards," said Holiday Inn manager Bob Buescher.
In addition, the affected businesses also must contribute toward health benefits to the tune of $1.75 per hour; that benefit subsidy would rise to .50 the next year. The ordinance also forbids retaliation against workers who blow the whistle on bosses who fail to comply with the law.
Exemptions will be allowed for businesses that have an economic hardship or a work force that consists mainly of minors or seasonal workers. Details for the exemptions will be worked out by a task force in the near future.
Various so-called living wage ordinances exist in about 50 U.S. cities, experts say. But those have mainly been aimed at businesses that rely on government contracts or operate on government-owned land. Santa Monica's version targets large private businesses that do not have such contracts and that are on private property in specific neighborhoods.
Backers argue that businesses in those neighborhoods have benefited from the city's tourism promotion and from millions of dollars in tax-funded beach, pier and street renovations.
"It's the first time that I know of that it's been applied to workers that aren't contracted by a city or county," said Heather Boushey, an economist for the Economic Policy Institute, a Washington-based think tank that has not taken part in the wage debate.
The .50 an hour is probably the third- or fourth-highest such municipally set wage in the nation, Boushey added.
Supporters hope to influence other cities.
"I think we have crafted a very innovative ordinance that could have impact throughout the country," said Vivian Rothstein, a member of Santa Monicans Allied for Responsible Tourism, which supports the wage increase.
The council meeting attracted a large crowd of ordinance supporters and disgruntled businesspeople. But by the time the vote was cast, the crowd had dwindled from hundreds to a few onlookers.
Le Merigot Hotel General Manager Sig Ortloff predicted layoffs will result from the forced higher wage. "I don't want to be an alarmist, but I might have to let go about 25 people--about 10% of my work force," he said.
Although living wage supporters got most of what they wanted, some argued that .69 should have been the wage floor.
Among those attending the meeting Wednesday morning was Elva Hernandez. After 11 years working at the Doubletree Hotel, she makes an hour but supports the new wage for the housekeepers she supervises, and because she said there are no health benefits.
"At my workplace they do not pay very well and things are expensive, like rent, food and health insurance," she said.
'Living Wage' Ramifications Clear to Some
By OSCAR JOHNSON and OFELIA CASILLAS
TIMES STAFF WRITERS (5/25/01)
While attorneys speculated on the constitutionality of Santa Monica's newly approved living wage law, hotel housekeeper Blanca Mendez was just hoping Thursday that she can benefit if a raise to .50 an hour goes into effect next summer at large downtown and beach-side businesses.
"It would be fantastic," said Mendez, who now earns .50 an hour after seven years at the Streamline Moderne-style Shangri-La Hotel near the ocean. "The economy is very difficult; everything is getting expensive, like gas, like energy."
But some lawyers predicted trouble ahead for the nation's first municipally mandated wage increase for private businesses that are not on city contracts or city land. They contend the law's targeting of certain areas and businesses and the exclusion of others is too arbitrary to survive an expected court challenge.
In the meantime, workers such as Mendez remained uncertain as to whether their workplaces will be included in the new law even if it does survive.
The uncertainty had parts of Santa Monica's beachfront work force buzzing Thursday.
Shangri-La manager Dino Nanni said he anticipates his 55-room hotel will be exempted from the law because its revenues fall below the -million-a-year threshold in the ordinance. But even so, he will feel its effects if his employees try to defect to better-paying jobs at larger hotels farther down Ocean Avenue.
Orlando Solis, who has worked as a maintenance worker at Shangri-La for a few months, said he would consider moving to another hotel that pays more.
"I can pay more bills," he said. "It would be more money in my pocket."
Mendez said she likes her job: "They are good to me here." But she wouldn't mind a pay raise, she acknowledged as she was cleaning a guest room, making the bed and putting in fresh towels.
Lawyers suggested Thursday the expected court challenge to the new law will be good to many of their number too.
Santa Monica lawyer Tom Larmore, who has worked with local business owners and merchants to oppose the ordinance, predicts the city will be exposed to significant financial liability as a result of an ordinance that affects some businesses in some parts of town and not other businesses elsewhere.
"If businesses suffer losses from the ordinance and the court decides what the city did was not constitutional, they would have grounds to go after the city for unconstitutionally impacting their business," he said.
But Joseph Lawrence, an assistant city attorney for Santa Monica, insisted Thursday that the city is within its rights and will fight back any claims that the wage ordinance unconstitutionally denies "equal protection."
"What it basically comes down to is economic law," Lawrence said. Officials "are given considerable leeway" on how they apply laws, he added. "If you had to treat the whole country the same you'd never get anything done."
Constitutional law expert Erwin Chemerinsky, a USC law professor, agreed.
"I don't see any constitutional problem with this," said Chemerinsky, who said he has reviewed the Santa Monica law at the request of the pro-ordinance California Living Wage Commission.
"The Supreme Court has said that the government can regulate business as long as the regulation is reasonable," he said.
Such laws are tougher to overturn because the burden of proof is higher than in discrimination cases involving race or free speech, Chemerinsky said.
Santa Monica's ordinance, preliminarily approved early Wednesday on a 5-1 vote, will raise minimum pay for workers at about 40 businesses that each gross more than million in the coastal zone and downtown.
Employers also must pay health benefits of $1.75 per hour, then .50 hourly the next year, and there is a ban on retaliating against workers who report noncompliance to officials.
Business also can apply for exemption due to economic hardship or if they employ mainly minors or a seasonal worker force.
A required second reading of the ordinance is set for June 12. Although workers will not see the wage hike until July 2002, some aspects of the new law, such as protection from retaliation from employers, could go into effect this summer.
That means that employees and employers alike may soon be grappling with the law.
"I think there will be decisions made by businesses thinking about coming to Santa Monica who will say, 'I don't think we'll go there,' " predicted Dan Ehrler, executive vice president of the Santa Monica Chamber of Commerce.
"There will be some that are already here that will be thinking twice about remaining, both those in the area affected by the ordinance and those outside of it."
At the fashionable Rebecca's Restaurant on Broadway, manager Rene Galicia said his eatery will not leave town. But, since he expects it to be included in the higher-wage category, he said, "We'll be cutting hours and controlling labor. We are not going to [fire workers] because then we'll be tied up and service will be slower. We will try to control the labor and play with the schedules, that will be the only solution for us."
On the other side of the issue, Flor Rodriguez, a housekeeper at the Best Western Ocean View Hotel on Ocean Avenue, had a much more optimistic outlook.
"I'd go on vacation with my children. We all have necessities. I'd save for my daughter's college," said the .25-per-hour worker. "It would be great!"
Opposition Gears Up as City Passes Living Wage Law
By OSCAR JOHNSON
TIMES STAFF WRITER
(7/25/01)
As the Santa Monica City Council on Tuesday gave final approval to its long-debated living wage ordinance, the landmark law triggered a tussle over voters' signatures.
Opponents said they would begin collecting today the approximately 5,700 signatures needed for a public ballot referendum voiding the measure, which would set a minimum hourly pay of .50 at about 40 Santa Monica businesses. At the same time, supporters of the living wage ordinance announced efforts to discourage people from signing those petitions.
The ordinance, passed by a 5-2 vote, will require the higher pay at businesses grossing million or more in the city's downtown and beachfront areas and also mandates an additional $1.75 per hour for health benefits the first year, and .50 by the second year.
Experts say it is the first such law in the nation targeting business not in contracts with a city or on city land.
The ordinance goes into effect next summer. But a clause kicks in next month to protect workers from being fired or harassed if they have been proponents of the law or inform on employers.
"I think this is a very historic night for Santa Monica and all cities with successful tourism districts that are built on the backs of low-wage workers," said Vivian Rothstein of Santa Monicans Allied for Responsible Tourism, which supports the ordinance, along with organized labor and others. "Now our work is to protect this initiative."
Businesses and other opponents said the signature gathering to repeal the law will start this morning in public places.
"We definitely feel this needs to be put in front of Santa Monica voters," said Sheri Annis, a Santa Monica-based media consultant and member of Fighting Against Irresponsible Regulation, which formed to thwart the law.
Opponents argue that the law unfairly targets a few businesses, does little to help the working poor and will harm businesses in the city.
Supporters stress that only about 1% of businesses in Santa Monica would be affected. They defend the law's legitimacy by pointing to city funds and policies that have helped create a lucrative tourist area for hotels and restaurants.
Living wage advocates contend that many of those businesses pay such low wages that workers must use public assistance to make ends meet. But some hotels argue that many employees already earn close to the 10.50 when tips are included.
Responsible Tourism group advocates kicked off an anti-referendum campaign last week and on Tuesday evening began distributing leaflets that urged residents not to sign the ballot petitions. They have vowed to locate signature gatherers and lobby would-be signers in front of supermarkets and other spots.
The City Council is taking steps that would force disclosure of financial backing for this and other referendums.
The council Tuesday gave final approval to a law mandating that signature gatherers say whether or not they are paid, if asked. They must also distribute fliers detailing proposed initiatives, referendums and recalls.
Battle Continues Over Wage Law
By OSCAR JOHNSON
TIMES STAFF WRITER
(8/14/01)
Santa Monica approved its controversial living wage law last month, but the fight over the measure continues.
In fact, the fight is growing more heated with pro-business and pro-labor forces each accusing the other of unfair tactics.
A business-backed group is collecting signatures to place a referendum on the ballot that would allow voters to decide whether the law will take effect next summer as planned.
With just 10 days left for the law's opponents to collect about 6,000 signatures to put the measure before the voters, labor advocates are shadowing petitioners at public places with their own "Decline to Sign" campaign. The pro-labor forces accuse the petition-gatherers of misleading would-be signers about what the city's Living Wage Ordinance will do if it takes effect. The petition-gatherers, meanwhile, complain that their opponents heckle them and scare off would-be signers.
It is the latest skirmish over the nation's first city wage law targeting businesses not contracted with a municipality. The law requires some large employers to pay at least .50 an hour, plus benefits.
If successful, the referendum would ensure that voters--not the City Council--determine the law's fate.
But advocates accuse signature-gatherers of saying the petition would favor a minimum-wage hike, or exaggerating the increase and scope of the law. The group supporting the living wage law, Santa Monicans Allied for Responsible Tourism (SMART) filed a complaint to that effect last Wednesday with the city attorney.
A group of pro-labor clergy and volunteers dished out slivers of pumpkin pie at the farmers market, asking voters to ensure that low-wage workers get their proverbial slice too.
"Everyone deserves a piece of the pie," said Father Michael Gutierrez of St. Anne's Church. Gutierrez said petition-gatherers have said the referendum supports raising the minimum wage when, in fact, it could repeal the hike approved by the City Council.
It's a charge that Tom Larmore, an attorney and spokesman for Fighting Against Irresponsible Regulation (FAIR), dismisses as "posturing." SMART is using guerrilla tactics to drive off petition-signers, he said.
"Some of our folks felt like they had to call the police because they felt intimidated," he said of petition-gatherers. Members of SMART counter that FAIR calls police to drive them away.
Last Friday, FAIR held its own media event on the steps of City Hall to show community support for the referendum. About a dozen supporters attended. "I think we should look at [wage minimums] nationally," said Herb Katz, one of the two council members to vote against the law. He added that it's unfair to target select businesses, as the ordinance does. "I think it's a payback to unions that supported most of the council."
FAIR members said they do not know exactly how many signatures they have gathered but estimate they will make the Aug. 23 deadline.
Last week, SMART started a mailing campaign, sending fliers to voters urging them not to sign the FAIR petitions. They also ask voters, if they signed a petition unwittingly, to formally ask city officials to withdraw their signatures.
Only 16 voters have submitted requests to revoke their signatures, according to the City Clerk's office.
The pro-business and pro-labor forces have wrangled over petitions before. Last year, a group--bankrolled with nearly $1 million from local hotels--circulated a petition for what it called a "living wage ordinance." Measure KK would have raised pay for about 60 city workers while banning the City Council from imposing future minimum wage laws. It made the ballot but was overwhelmingly defeated.
FAIR has spent ,601 on its campaign and received ,125 in in-kind contributions, according to city records.
By comparison, about two-thirds of SMART's ,000 campaign budget comes from in-kind contributions from labor groups.
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A New Kind of ER:
Anti-Gang Program Lends Hand to Wounded Youths in Hospital
By OSCAR JOHNSON
TIMES STAFF WRITER
(2/20/01)
When Michael Baca worked in the emergency room of St. Francis Medical Center in Lynwood, there was one type of wound he could not get used to seeing. Bullet holes in young men.
So, after five years on the trauma team assisting doctors, Baca helped the hospital open a new, unusual ER--the Earn Respect gang intervention program.
"These kids used to come rolling in here like they were frequent fliers," said Baca, who turned in his stethoscope to be the program's coordinator. "I wanted to develop a program for these kids who came in here shot--to give them a second chance."
In nearly two years, the program has recruited 53 gang members, ages 17 to 25, from the emergency room and the streets and placed them in a classroom at St. Francis. Three classes of young men have traded gang attire for modest gray uniforms and hospital identification badges.
Four days a week they study a variety of topics, including computers, cultural awareness, history and government and even CPR at no charge. Those who never finished the 12th grade can work on receiving their high school equivalency diplomas. Other free benefits include counseling, van rides to and from class, dinners in the hospital cafeteria and tattoo removal.
After five months, participants are eligible for 16-week paid internships at the hospital, doing jobs such as answering phones and assisting hospital staff members. After that, Baca and 12 full- or part-time staff members help them find jobs ranging from office assistant to gas station attendant.
Besides its unusual hospital setting, the program differs from many such efforts in concentrating on young people who are active gang members. Other area programs try to reach youths before they join gangs or seek to help them once they decide they want to break away. Earn Respect often grabs them while they are still bleeding.
Several gang or crime experts said they were unfamiliar with other hospital-based programs offering as comprehensive an alternative to gang life as Earn Respect.
There have been similar attempts, but this is "a fairly elaborate and exhaustive effort," said James Allen Fox, professor of criminology at Northeastern University in Boston.
In Lynwood, a roughly five-square-mile city about 10 miles south of downtown Los Angeles, the county Sheriff's Department has identified 20 gangs as criminally active.
This year, at least six of the nine gang homicide cases investigated by the department's Century Station occurred in Lynwood, said Sheriff's Det. Dana Ellison.
There were 10 gang-related slayings in Lynwood during all of last year, said Ellison, who works in the night gang unit at the station, which covers an area including Willowbrook, Athens, Walnut Park and parts of Florence.
Already this year, about 300 gang members have been referred to Earn Respect by parents, officers, hospital staff members and others. For now, the program can handle only 21, up from 16 in each of the two previous classes.
Still, the 30-year-old Baca, a former paramedic, spends two or three nights a week cruising Lynwood streets such as Long Beach Boulevard, where drug sales, loitering youths and gang shootings are common. He makes frequent stops in his white van to talk with young gangbangers. Though he never joined a gang while growing up in East Los Angeles, he knows Lynwood's gangs, their members and often their families. And they know him.
If Baca cannot persuade them to join the program right away, there's a chance that, as in Jimmy Aguilera's case, he will catch them after they wake up in the hospital's trauma ward.
Aguilera, who said his family has been involved in gang life for three generations, recalled that, at one time, "all I knew was gangbanging." He met Baca when he went to the hospital in 1999 with a concussion after being shot three times. He graduated from the program last year and now has a job moving patients between departments in the hospital.
"I always wanted to live a normal life," said Aguilera, 22, who left gangbanging in East L.A. to raise a child with his girlfriend in Lynwood. "I found that in this program. I'm working, I'm paying bills, and I can do it without dope money."
For 19-year-old Trayvon Jeffers, the program "opened my eyes to see you can get the best out of life."
Jeffers said he started gangbanging at age 11 and spent his days mostly selling drugs or robbing people. He learned about the program while recovering from a gunshot wound.
He completed the program last year and is studying for his high school equivalency diploma so that he can pursue law school.
The program's ability to wrench young men from the clutches of gangs is in part due to the hospital's owners, the Daughters of Charity of St. Vincent de Paul. The nonprofit Catholic charity has given the program ,000 over the last two years and plans to provide future funding, said Sister Arthur Gordon, the group's health and social ministries counselor and a member of Earn Respect's advisory board. The program is doing what some health professionals have been considering for years.
"In hospitals, I think we have a tremendous opportunity that we're not taking advantage of," said Billie Weiss, program director for the county Department of Health Services' Injury and Violence Prevention Program. "It's what many of us have talked about. . . . In general, there hasn't been funding."
Armando Morales, a UCLA professor of psychiatry and biobehavioral sciences who has treated violent gang members for 47 years, said hospital access to gang members is a "window of opportunity" that comes when they experience a brush with death.
"This program could be multiplied 100 times or more to meet the needs of L.A. County," he said.
Baca said he met with city officials early on to inform them and garner su
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