As momentum for $15 builds in St. Paul, so does concern over corporate interference

Earlier this month Kiara Ivy stepped outside the hardware store in St. Paul where she works as a cashier, and found an organizer waiting for her with a clipboard and a question.

Would she support raising St. Paul’s minimum wage to $15?

Ivy, who earns $9.65 an hour, didn’t hesitate to say yes.

“I had heard a lot of talk about raising the minimum wage, but didn’t know it was happening here,” she said. “I tend not to get my hopes up a lot, but it sounds so nice.”

Ivy was one of 539 low-wage workers who signed up to support a $15 minimum wage during a five-day organizing blitz earlier this month. It’s given the 15 Now campaign a jolt of momentum – and an even deeper well of public support – as the issue moves up the city’s agenda.

Working America’s Alisa Tennessen, who coordinated the blitz, said it also provided a glimpse of who is working for poverty wages in the capital city, as many supporters filled out surveys on what $15 would mean for themselves and their families.

“The answers are heartbreaking,” Tennessen said, noting “an astonishingly high number of people who talked about food – healthier food, more food, more food for their families.”

Ivy, in fact, met with a reporter on her way home from the food shelf. The 18-year-old shares a one-bedroom apartment in St. Paul with her mom and a roommate, chipping in $100 a month for rent and $50 each week for food, despite working only 25 hours per week.

Raising the wage to $15 in St. Paul, she said, would “mean I could finally move out on my own and still be able to help my mom out.”

Local elected officials in St. Paul, including Mayor Melvin Carter, have signaled support for giving workers like Ivy a raise. City Council President Amy Brendmoen said in February the plan is to “have an ordinance in front of us by fall.”

By that time, however, St. Paul may no longer have the authority to pass its own minimum-wage law.

As they did last year, corporate special interests and Republicans in the Legislature are trying to pull the rug out from under Ivy and other workers fighting for $15, pushing a bill that would bar local governments from raising employment standards in their communities – and strip newly won earned sick and safe time benefits from 150,000 working people in Minneapolis and St. Paul.

Gov. Mark Dayton vetoed the local preemption measure last year, but Republican majorities in the House and Senate have quietly brought it back to life this legislative session.

Brad Lehto, chief of staff for the Minnesota AFL-CIO, said one of Republicans’ first moves after the 2018 session began was to send the preemption bill (House File 600) back into conference committee.

“Whenever they see fit, they will convene the committee and pass it back to the House and Senate, where it already passed once,” he said. “Will they do that? I would think so. When? I think late in the session.”

Lehto and other Capitol observers anticipate the GOP will try to use preemption as a bargaining chip in negotiations with the governor.

Earlier this month, as 15 Now activists fanned out across the city during the organizing blitz, union groups like the St. Paul Regional Labor Federation began holding phone banks, connecting union members statewide with Gov. Dayton to urge him to stand firm on protecting local control again this year. [Click here to find a phone bank near you.]

Unions aren’t alone in the fight, either. Lehto said nearly 80 Minnesota cities have passed resolutions supporting local control.

“We’ve told (lawmakers) over and over, if you would pass a higher minimum wage, if you would pass paid family leave, if you would pass earned sick and safe time, then we wouldn’t have to do this on the local level,” he added.

As debate over the minimum wage and local control plays out this spring, Ivy will begin work at a second job as a personal-care attendant, earning about $12 per hour. (Roughly a quarter of St. Paul workers surveyed by 15 Now work two jobs to make ends meet.)

For Ivy, it means more money to help pay the bills, but less time to pursue her long-term goals – a car of her own, a college degree and a life in New York.

“I want to be in New York, and I want to be a psychiatrist,” she said. “I dream about it, but I haven’t started anything yet.” Earning $15, she added, “would help me to save more to get there.”

Four takeaways from the new report on raising St. Paul’s minimum wage

Jess Manthe, a longtime retail worker in St. Paul, speaks at a rally outside council chambers, calling poverty wages a barrier to the middle class for too many people in the city.

Low-wage workers listened as the author of a report on raising St. Paul’s minimum wage summarized her findings at yesterday’s City Council meeting. Then they put council members on notice.

“Now is the time for the city to take a stand and get us the wages we need,” personal care attendant Daniel Maddox, a member of the low-wage worker center CTUL, said during a brief rally outside council chambers.

Council members at the meeting indicated they plan to move at a more deliberate pace. Council President Amy Brendmoen said the plan is to “have an ordinance in front of us by fall.”

What that ordinance should look like is already the subject of a heated debate, as the report presented yesterday confirmed.

The nonpartisan Citizens League prepared the report to give council members an overview of available data and research on the topic, and to identify which constituencies are likely to be impacted by a higher minimum wage. It’s available on the Citizen League’s website.

Here are four takeaways from the report and Citizen League Executive Director Pahoua Yang Hoffman’s presentation to the Council yesterday.

1. Despite an unemployment rate of 3.1 percent, too many working people and families in St. Paul live in poverty.

The Met Council’s most recent analysis of census data shows 40.8 percent of St. Paul residents live in poverty, a higher rate than any other metro-area community. And areas of concentrated poverty are spreading within the city, a trend Ward 7’s Jane Prince called “disturbing.”

Jess Manthe, a longtime retail worker in St. Paul, called poverty wages a barrier to the middle class.

“I have huge amounts of (student) debt that I’ll carry with me for the next 25 years,” she said. “Our unlivable wages mean my husband and I aren’t going to be able to buy a house, and having kids is completely off the table. I think it’s time for St. Paul to invest in its workers.”

2. People working for poverty wages know their paychecks don’t get bigger by accident or their bosses’ goodwill.

In preparing the Citizens League’s report, Hoffman met with more than 100 “stakeholders.” In her presentation to the Council, she singled out the story of a retail janitor who, after 14 years on the job, has seen her wages increase from $7.25 to $10.75 per hour.

The state minimum wage has increased from $6.15 to $9.65 over the same time frame. “She wanted me to let you know that if not for a mandate, she may never get to $15,” Hoffman said.

3. The janitor working for $10.75 after 14 years on the job is not a statistical outlier. In St. Paul poverty wages affect workers of all ages.

Stereotypes that cast minimum-wage earners as students working around classes or retirees keeping themselves busy are bogus. The Citizens League report cites a 2016 study by the Roy Wilkins Center for Human Relations and Social Justice, which considered the impacts of a minimum-wage increase in Minneapolis and in Hennepin and Ramsey counties.

“There is no distinction between ages where there might be in other cities, where low-wage workers might be younger or older,” Hoffman said.

Tipped workers packed council chambers to hear the report on raising St. Paul’s minimum wage.

4. Whether it’s a tip penalty or a training wage, interest groups will attempt to poke holes in St. Paul’s minimum wage.

The Citizens League report reflects a split within the restaurant industry over the tip penalty, which allows employers to pay a sub-minimum wage as long as workers make up the difference in tips. Working people on both sides of the issue showed up in council chambers yesterday.

Servers who support a tip penalty say a lower minimum wage is vital to their employers’ profitability, as well as preservation of a tipping culture. Opponents argue the tip penalty opens the door to wage theft, as some employers fail to make up the difference between workers’ tips and the minimum wage.

Research also shows tip penalties contribute to a culture of sexual harassment in the restaurant industry. A study released earlier this month found female tipped workers in states like Minnesota experience report sexual harassment at half the rate of their counterparts in states with a lower minimum wage for tipped workers.

Catherine Olsen, a tipped worker at a small business in St. Paul, called on city officials to pass an ordinance lifting all workers to $15 per hour, with no tip penalty and no youth wage. “St. Paul has an opportunity to act now and act fast – and to not leave anybody behind,” she said.

Bobby Kasper: Raising wages starts at home

Bobby Kasper

Unemployment is down. Corporate earnings are up. But for most hardworking Americans, wages aren’t going anywhere.

Congress and President Trump say their $1.5 trillion tax plan will shift wage growth out of neutral. Working people see the tax scam for what it is: a massive and deeply corrupt giveaway to millionaires, billionaires and wealthy corporations. With the gap between rich and poor as large as it’s been since the Great Depression, politicians in Washington are only rigging the game even more.

Here in St. Paul, we can cross our fingers and wait for corporate tax cuts to trickle down into our paychecks, or we can take matters into our own hands. We can cut through federal inaction by passing a $15 minimum wage that ensures no one working in our city lives in poverty.

The labor movement has a long history of backing legislation that improves working people’s lives, from the eight-hour day to child labor laws. Today, unions carry on the work of raising standards for all workers, whether they hold a union card or not. That’s why unions in St. Paul are leading the campaign for one fair minimum wage in our city, with no penalty for tipped workers.

Poverty wages are the biggest barrier to realizing our self-styled billing as the most livable city in America. St. Paul boasts an unemployment rate well below the national average, but an estimated 40 percent of the city’s residents live in poverty.

Too many jobs in our community aren’t paying wages that reflect the cost of living here. The state Department of Employment and Economic Development estimates people working full-time, year-round jobs must earn $15.31 per hour to meet their basic needs in Ramsey County. Anyone earning less is forced to make impossible choices. Do I pay the rent or buy groceries? Fill my prescription or my gas tank?

Too often, those choices fall on women and people of color. Poverty wages exacerbate our region’s yawning economic disparities along gender and racial lines. Poverty rates among workers of color are nearly four times higher than white workers in the metro area. Raising the wage to $15 is the single most effective way our elected officials can narrow the gap.

Working people in St. Paul deserve to see their wages keep pace with those in Minneapolis, where all workers are on track to make $15 by 2024. Expect low-wage employers and their front groups to trot out the same tired arguments and doomsday scenarios here as they did in Minneapolis. By now, you’ve heard them all – businesses will pick up and leave, employers will cut hours, the restaurant scene will wither.

Don’t buy it. Minnesota’s economy has thrived since Gov. Mark Dayton signed the statewide minimum-wage hike in 2014. Back then, the restaurant industry warned of layoffs and closings if the legislation passed. Today, business is booming in the restaurant industry, with job openings up 75 percent over the past year in the metro area. Cities and states across the country are raising the minimum wage gradually and prudently, without any signs of economic contraction. There’s no reason we can’t do the same in St. Paul.

Poverty wages are a real crisis in St. Paul, one that should be at the top of our city’s agenda in 2018. Mayor-elect Melvin Carter’s support for $15, both during the campaign and since his election, is encouraging. But working people have waited too long already for the gains of this economic recovery to trickle down into our paychecks. It’s time to turn promises into a concrete timeline for action. St. Paul needs a $15 minimum wage ordinance by next summer.

– Bobby Kasper is president of the St. Paul Regional Labor Federation, AFL-CIO, representing more than 100 affiliate unions with over 50,000 members in Ramsey, Washington, Dakota and Chisago counties.

Prominent activist to talk $15, #MeToo with tipped workers in St. Paul

Saru Jayaraman

A leading voice in the nationwide campaign to improve wages and working conditions for restaurant workers will meet tomorrow with tipped workers fighting for a $15 minimum wage in St. Paul.

In a 7 p.m. presentation at the St. Paul Labor Center, Saru Jayaraman will examine the connection between efforts to raise the minimum wage and the #MeToo movement to stop sexual harassment in the workplace. The event is free and open to the public.

Jayaraman is co-founder of the Restaurant Opportunities Center and director of the University of California-Berkeley’s Food and Labor Research Center. An advocate of one fair wage for hospitality workers, Jayaraman walked the red carpet at the Golden Globes last week with Amy Poehler, one of several actresses who invited #MeToo activists as their guests.

Jayaraman’s visit to St. Paul reflects growing momentum in support of a citywide $15 minimum wage. Minneapolis put a strong $15 ordinance on the books last year, and St. Paul’s newly elected mayor, Melvin Carter, made $15 a rallying cry during his 2017 campaign.

A key question elected officials will face as they craft a minimum-wage ordinance is whether St. Paul, like Minneapolis, should establish one fair wage or carve out a subminimum wage for tipped workers, known as a tip penalty.

Restaurant industry groups fought hard for a tip penalty in Minneapolis, serving up doomsday predictions of layoffs and restaurant closings if servers’ wages increase. The same arguments already are surfacing in St. Paul.

Jayaraman’s work, meanwhile, has exposed the tip penalty’s troubling impact on working conditions in the restaurant industry. Tipped workers in two-tiered minimum wage states experience sexual harassment at nearly double the rate of their counterparts in states like Minnesota with no subminimum wage.

Learn more about the Jan. 17 event, RSVP and invite others to attend on Facebook. The St. Paul Labor Center is located at 353 West 7th Street.

In contract talks, home care workers hope to address crisis facing state, industry

Home care workers and clients kick off the campaign for a new contract covering more than 20,000 workers statewide.

Home care workers and clients kick off the campaign for a new contract covering more than 20,000 workers statewide.

Minnesota’s home care workers are set to begin negotiating a new union contract Friday. At a Capitol press conference today, workers and their clients framed the talks as an opportunity for the state to begin addressing the workforce crisis in their industry.

As Minnesota’s population continues to age, the demand for workers who provide in-home health care is expected to increase sharply. The Minnesota Department of Employment and Economic Development projects nearly 38,000 new openings for home-health and personal-care aides over the next 10 years.

Home care clients and advocates worry those jobs will remain vacant unless working conditions in the industry improve – a process that starts with raising wages and respecting the work, home care client Nikki Villiavicencio said.

The Maplewood resident said a “huge shortage” of home care workers already exists in the state. “It’s a crisis that Minnesota leaders have not valued home care workers and the services they provide enough,” she said.

Represented in negotiations with the state by SEIU Healthcare Minnesota, home care workers said they plan to seek a $15 minimum wage in their next union contract, as well as expanded benefits and training opportunities specific to the type of care they provide.

Additionally, workers said they want the state to commit to long-range strategies for growing the industry’s worker pool and, along the same lines, improving job satisfaction among home care workers.

"I can be a better father, a better husband a better member of society with her," Jonathan Spika of St. Paul, left permanently disabled by MS, said of his home health care worker.

“I can be a better father, a better husband a better member of society with her,” Jonathan Spika of St. Paul, left permanently disabled by MS, said of his home health care worker.

“Most people don’t stay in these positions for very long because … this is one of the lowest-paying jobs in Minnesota,” home care worker Jasmine Laducer-Kitto said.

For Laducer-Kitto, the rewards of home care work go beyond the paycheck. But if state lawmakers value giving people the option of receiving care in their homes, she said, they need to invest in the workers who make it possible.

“We have to look at the this as an important job,” Laducer-Kitto said.

Home care workers’ first contract with the state, bargained after their historic organizing drive, is set to expire in July 2017. It raised the industry’s wage floor to $11 per hour and gave home care workers paid-time-off benefits for the first time.

Still, Villiavicencio said, “the progress we’ve made hasn’t been enough to lift us out of the crisis we’re in now.”

SEIU Healthcare Minnesota’s contract covers more than 20,000 home care workers across the state. Negotiators said they hope to have a tentative agreement before the 2017 legislative session begins so that lawmakers can vote to approve it for inclusion in the 2017-18 fiscal year budget.