The Living Wage Initiative Why do we need a living wage? What is a living wage? How will it help? What can I do?

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Presentation transcript:

The Living Wage Initiative Why do we need a living wage? What is a living wage? How will it help? What can I do?

Why do we need a living wage? “Janice’s” Story “Janice” is 50 years old; lives in Bryan. Single-mom supporting two teenage boys. Full-time custodian for 9 years Hourly Wage = $7.71 Annual Wage = $14,803* Monthly Take Home Pay = $810 * Below Federal Poverty Guidelines ($16,090 in 2005)

What does this mean for “Janice” and her family? One Month of Impossible Choices Expenses CostBalance Mortgage $ $ Utilities $256.00$ Gas $50.00$ Telephone $40.00 $69.00 Transportation $60.00 $9.00 Food $ $ Doctor’s Visit $ $ Medicine $ $ School Pictures $ $ School Dance $5.00 -$274.00

Is “Janice” alone? Poverty-Level Wage Earners at A&M Clerk I$6.15/hr$12,841/yr Food Service Worker$6.57/hr$13,718/yr Custodial Worker I $6.57/hr$13,718/yr Asst Pantry Cook $7.02/hr$14,658/yr Data gathered December

How many employees are affected? WageNumber of Employees $0-7.00/hour90 $ /hour381 $ /hour330 $ /hour379 Total1180 Employees Personal Communication (September 29, 2004). Lallah M. Howard, CPA, Assistant Vice President for Finance, Texas A&M University. [Note: Total income based on 2088 hours/year.]

What’s it like at other universities? Data gathered April, 2005 from Big Twelve University’s Human Resources Departments * Below 2005 Federal Poverty Guidelines Big Twelve University Starting Custodial Salaries UniversityStarting Hourly WageStarting Annual Wage Iowa State University$10.18$21,256 University of Texas$9.89$20,650 University of Colorado$8.80$18,375 University of Missouri$8.54$17,832 Kansas State University$8.49$17,728 University of Kansas$8.49$17,728 University of Nebraska$7.55$15,765* Texas A&M University$6.57$13,718* Texas Tech University$6.20$12,946* Oklahoma State University$6.15$12,846* University of Oklahoma$5.15$10,753*

What about the differences in the cost of living? Source: Sperling’s BestPlaces. (2005). Cost of Living Salary Calc. BLS Consumer Price Index. UniversityAdjusted Starting Annual Wage Iowa State University$19,562 University of Texas$19,577 University of Missouri$17,209 University of Kansas$15,758 Kansas State University$15,758 University of Colorado$15,750 University of Nebraska$14,449 Texas A&M University$13,718 Texas Tech University$13,017 Oklahoma State University$12,974 University of Oklahoma$10,860

What does this mean for our community? In Brazos County Persons living below the poverty line = 26.9% Food stamp recipients = 8,455 ($8,230,251) Temporary assistance to needy families (TANF) = 2,128 ($1,602,821) BISD economically disadvantaged = 60.2% CSISD economically disadvantaged = 24.8% U.S. Census Report FY2002; Academic Excellence Indicator System FY & Texas Department of Human Services

What can we do? Implement a Living Wage A living wage is for full-time workers A living wage enables workers to afford the basics in their community: Housing and Utilities Food Transportation Child Care Health Care

How does “Janice’s” salary compare to a Living Wage? The Housing Situation Based on HUD calculations, a unit is considered affordable if it costs no more than 30% of a renter’s income. Fair Market Rent for Two Bedroom in Bryan/College Station $ monthly Salary to afford fair market rent $23,840 annually $11.42 hourly Therefore, “Janice” and her two boys are $9, too poor for a two bedroom apartment

How does a living wage help employees? Earning a Living Wage may: promote self-sufficiency reduce dependency on government assistance provide better for employee and family’s needs

How does a living wage help our community and university? Community benefits Decrease in emergency health care, food programs, housing and community service costs Increase in worker buying power TAMU benefits Decreased turnover Support Vision 2020 by treating all workers with respect and civility (Core Value #4)

Questions? There is nothing but a lack of social vision to prevent us from paying an adequate wage to every American citizen...There is nothing except shortsightedness to prevent us from guaranteeing an annual minimum and livable income for every American family… Martin Luther King, Jr.