Living Wage deal struck

Koppell speaks on the living wage as Diaz (right) and Quinn (left) look on.

After multiple compromises, a living wage deal has apparently been struck in the City Council.

Council Speaker Christine Quinn, the second-to-last major barricade in passing the Fair Wages for New Yorkers Act, announced her support of a new living wage bill. The last barricade is Mayor Bloomberg, who still does not support the bill, renewed his vow to veto the bill.

However, with Quinn's support, the City Council should be able to garner the 34 votes needed to override the Mayor's veto.

"There is nothing more important for government right now than the work of creating and retaining the best jobs we can," Quinn said in prepared remarks delivered today (full remarks below the jump).

"As Speaker, one of my jobs is to do all that I can to keep and create jobs in New York and to make sure those jobs provide people with the resources they need to support their families."

As everyone already knew, "I could not support the original living wage bill as it was introduced," she said. "The requirement that tenants in subsidized projects pay more when the city has no financial connection with them is a provision that I believe would have cost us future retail jobs. Placing this requirement on businesses that don’t receive a direct benefit is simply unfair."

That being said, Quinn said it was necessary to have the businesses that directly take money to pass the benefit along to their employees.

"I believe it is fair and appropriate for government to place requirements on a business that has voluntarily entered into an economic development agreement with the City. At the end of the day, they have a choice as to whether or not they want both the money offered to them and the wage requirements."

A living wage would require certain developers of direct, significant city subsidies to pay their employees at least $10 an hour with benefits or $11.50 without.

Local leaders around the city have applauded the compromise, the second Bronx-related compromise with the city this week. The first, which elevated the living wage debate into the spotlight, was the issuing of the request for proposals for the Kingsbridge Armory.

“I am extremely happy that we have reached an agreement on the ‘Fair Wages for New Yorkers’ Act, and that this important bill will finally see a vote in the City Council," Bronx Borough President Ruben Diaz Jr. said. "The deal we have reached today creates the strongest ‘living wage’ legislation in the nation, one that will demand that direct recipients of significant taxpayer subsidies do better by their employees."

Diaz had City Council members G. Oliver Koppell and Annabel Palma introduce the bill on his behalf.

“This bill will ensure that taxpayer subsidies are used to improve the quality of life of New Yorkers. Today’s announcement is a victory for the people of this City, and I look forward to this legislation becoming law,” Diaz said.

Palma not only applauded the compromise, but also noted that there is now a fight going on for a minimum wage increase at the state level and that it should elevate to the federal level.

“This hard-wrought agreement will help a number of New Yorkers secure jobs that pay a living wage and I am grateful for the support of my colleagues and all of those who have been vocal advocates of this bill," Palma said.

"Additionally, it is encouraging that Speaker [Sheldon] Silver is carrying the fight against income inequality in Albany," she said. "I commend him for highlighting the need for a State-wide minimum wage increase tied to the cost of living. I am further encouraged that this idea is picking up steam on both sides of the aisle, with Mayor Bloomberg’s strong endorsement in yesterday’s State of the City address.

"I also urge our Federal representatives to engage in the conversation on economic inequality that is occurring across the country. People throughout our nation are struggling to survive by working low wage jobs, yet it has been over a decade since Washington increased the federal minimum wage. It’s time for our leaders in Washington to get serious about the challenges ahead and the reforms that will be necessary to fix an economy that too often fails our working people.” 

City Comptroller John Liu also released a statement, saying, “This living wage agreement will ensure

better use of public subsidies for private business and help reverse the widening wealth gap in our City. The City Council and the Living Wage Coalition are to be commended for their tenacious effort in getting this accomplished.”

Public Advocate Bill de Blasio pushes living wage bill (UPDATE)

The center of the Living Wage battle: The Kingsbridge Armory

In a letter sent yesterday to Mayor Bloomberg and City Council Speaker Christine Quinn, Public Advocate Bill de Blasio has announced his support for a living wage bill.

The bill, which is currently in limbo in the City Council, would require certain companies receiving city subsidies to pay employees $10 an hour with benefits or $11.50 without. De Blasio is expected to face Quinn in the Democratic primary for mayor, and the debate over a living wage will be a hot topic.

This is going to be a difficult issue for Quinn; she receives major contributions from the business community, which is firmly opposed to it. Bloomberg is also strongly against the bill.

In his letter (below), de Blasio says the prolonged economic crisis has battered the middle class. "Underlying these problems is a rising income inequality that threatens our social fabric and economic future," he writes. 

But de Blasio is calling for one change to the bill, which is to protect smaller businesses by increasing the amount of annual revenue that a business must earn to require offering a living wage to $5 million.

The bill, introduced by City Council members G. Oliver Koppell and Annabel Palma on the behest of Bronx Borough President Ruben Diaz Jr., has been sitting in the City Council for months now, and has gone through much debate, both in public and in the Council. Quinn has yet to decide whether or not she will bring it to a vote.

De Blasio goes after the bill's detractors, defending the stoppage of the Kingsbridge Armory shopping center.

"Some have claimed that a Living Wage bill would inhibit future development, citing the City's experience with the Kingsbridge Armory as an example," he wrote. "I am the first to say that it was a tragedy negotiations were not able to yield a project at the Kingsbridge Armory. I do not subscribe to the notion that no projects are better than imperfect projects. But what killed the Kingsbridge Armory project was brinksmanship in the negotiating process—not the principle of a Living Wage."

UPDATE: Here is a statement from Bronx Borough President Ruben Diaz Jr. It should be noted that de Blasio was at the Benjamin Franklin Reform Democratic Club's holiday party last week, where Diaz spoke about the living wage. The BFRDC is also home to Koppell.

“As a leader in the fight to bring a ‘living wage’ law to New York City, I enthusiastically welcome Public Advocate Bill de Blasio’s support for the ‘Fair Wages for New Yorkers’ Act," Diaz said. "Public Advocate de Blasio has displayed a strong record of fighting for the rights of those underserved and often ignored residents of this City, and his support for this historic legislation is another great example of his commitment to justice and fairness for New Yorkers.

“For months, the public advocate met with individuals and organizations on all sides of this legislation as he engaged in a thoughtful, deliberative examination of the merits of this bill. After meeting with me personally last week, I am thrilled that he has joined the majority of our City in support of the ‘Fair Wages for New Yorkers’ Act. This further demonstrates that we are gaining momentum in our efforts to pass this important legislation.

“The ‘Fair Wages for New Yorkers’ Act will ensure that our taxpayer dollars are spent not only to enrich major developers, but also to provide a way forward out of poverty for their employees. Bill de Blasio understands that, and I welcome his support for this bill and look forward to working with him on making it law."

Living Wage

Living wage advocates prepping for City Council hearing

Here's a video from Living Wage NYC, the advocates for the living wage. They're holding a rally Monday, Nov. 21 at the Riverside Church in Manhattan, and then going to the City Council hearing on the bill the following day (details of the meetings are at the end of the video).



The bill would require companies that receive over $1 million in city subsidies to provide a living wage to their employees. A living wage is $10/hr with benefits or $11.50 without. The living wage battle hit the spotlight when the City Council nixed a deal that would have put a shopping center in the Kingsbridge Armory. The developer refused to agree to the living wage mandate, which would have also required their tenants (the stores) to pay a living wage as well.

The main sponsors of the bill are Bronx City Council members G. Oliver Koppell and Annabel Palma. They have drastically changed the bill over the last year to appease opponents of the living wage but there is still much debate over the bill. City Council Speaker Christine Quinn has yet to take a position on the bill and put off holding a hearing about the issue for months. She has, in the past, held hearings about controversial issues and then refused to bring them to a vote.