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.

Safety expert weighs implications as job market shifts ‘from stability to precariousness’

Dr. John Howard

Dr. John Howard

The nature of work is changing dramatically, and it’s creating new challenges – and pitfalls – for regulators charged with protecting workers’ health and safety.

The highest-ranking official at the National Institute for Occupational Safety and Health called on academics gathered Wednesday at the University of Minnesota to dig deep into the implications of emerging economic trends like robotics and agency-based, temporary employment, as well as the potential use of “big data” to make workplaces safer.

“The government built all of our social-protection laws based on an old paradigm,” Dr. John Howard told about 75 professionals gathered at the Midwest Center for Occupational Health and Safety’s annual symposium. With a greater share of the U.S. workforce moving “from stability to precariousness,” he added, “the normal employer-employee relationship has eroded.”

Howard, who also serves as administrator of the World Trade Center Health Program, covered a wide range of issues and referenced a trove of published research in his 45-minute address.

No one knows exactly how many U.S. workers are employed in temporary jobs or other “non-traditional” arrangements, Howard said. But it’s definitely on the rise.

Research shows the 21st-century job market is characterized by uncertainty and ambiguity. Workers increasingly settle for short-term “gigs” rather than career-path jobs. Many find themselves at the mercy of sophisticated, “Just-in-Time” scheduling software that makes their shifts irregular and paychecks unpredictable. Layers of subcontractors and agencies often create murky managerial relationships.

In many ways, the emerging labor market looks increasingly like the construction industry, where tradespeople bounce from jobsite to jobsite and from employer to employer. That means regulators, Howard said, ought to cast a wider net for wage theft, misclassification of workers as “independent contractors” and other violations that plague construction work.

But worker-protection laws written in the mid-20th century aren’t always applicable in the modern age, when any coffee shop with wifi can serve as an office and Google Hangouts can take the place of a conference room. “We really have another definition of a workplace, and it’s a challenging one,” Howard said.

Meanwhile, global trade and automation continue to alter the type of work most Americans do.

It’s generally accepted, Howard said, that 47 percent of existing job categories will be subject to automation in the next two decades. And experts expect about 80 percent of the workforce soon will be employed in service-oriented work – jobs, Howard said, that usually require no more than a high-school degree.

“It may not be possible now to increase productivity through education,” Howard said, acknowledging that such an assertion flies in the face of predictions offered two decades ago by proponents of NAFTA and other free-trade agreements. “Economists are finding out that the benefits of trade don’t necessarily justify its cost,” he added.

Technology is also creating opportunities and challenges when it comes to protecting workers’ health and safety on the job.

Researchers in the field of occupational health are only beginning to understand the potential of new sensory technology that provides a constant stream of data from the jobsite to safety monitors – everything from air quality to the heart rates of workers on a factor floor. The “big struggle,” Howard said, is mining that data for indicators that accidents or other adverse events might be on the horizon.

Finding those indicators could amount to a major breakthrough in worker safety – and a much-needed one as well. Research suggests the changing nature of work – the shift “from stability to precariousness,” as Howard put it – comes with some serious health and safety risks for working people.

Studies suggest temporary workers have shorter life spans than those in career-path positions. Unpredictable work schedules may also be taking a toll on workers’ mental health. And when a patchwork collection of temp agencies and subcontractors provides labor for a single workplace, site-specific safety training is often inconsistent – and sometimes nonexistent.

“Workers have a more distant relationship with the people they work with, the people who can help navigate potential hazards,” Howard said, noting that temporary workers are less likely to report potential hazards – or try using collective action to improve their working conditions.

“They work for a temp agency,” Howard said. “They feel lucky just to have a job.”