Upstate Workers Challenge Disparate Minimum Wage Impact in New York

New York State’s 2017 budget was hailed as a win for workers, as the Fight for 15 movement saw victory in raising the minimum wage in New York City. But the budget exempted upstate cities from the wage hike. Our partners at WMHT take an in-depth look at the impact the minimum wage increase could have on workers and small businesses in New York.

TRANSCRIPT

FUNDING FOR CHASING THE DREAM IS PROVIDED BY THE

JPB FOUNDATION.

AND THE FORD FOUNDATION.

>> AT THE BEGINNING OF THE MONTH, THE STATE

LEGISLATURE APPROVED A BILL TO RAISE NEW YORK'S

MINIMUM WAGE FROM $9 AN HOUR TO AS MUCH AS $15 AN

HOUR.

THAT ALL DEPENDS ON WHERE IN NEW YORK YOU LIVE.

WORKERS LIVING UPSTATE WILL ONLY REACH 12.50 AN

HOUR AND THAT INCREASE WON'T BE FINAL UNTIL 2021.

THE WAGE INCREASE WAS HELD AS A VICTORY BY LABOR

UNIONS AND ORGANIZERS OF THE THE CAUSE.

FOR LOW WAGE OWNERS AND SMALL BUSINESS OWNERS, THE

PAY INCREASE COMES WITH UNCERTAINTY AND ANXIETY.

>> IT'S GONE UP TO WHERE IT'S A THOUSAND DOLLARS A

MONTH FOR JUST THIS.

>> REPORTER: JAQUI SHARES THIS APARTMENT WITH HER

HUSBAND AND TWO CATS IN COLONEE.

>> MY CLOSET, KITCHEN AND LIVING ROOM.

>> REPORTER: JORDAN MOVED TO SCHENECTADY 20 YEARS

AGO TO MEET HER HUSBAND'S FAMILY AND WHEN HER CAR

WAS STOLEN, SHE BECAME AN UNEXPECTED PERMANENT

RESIDENT.

WITHOUT A FORMAL DEGREE, SHE TOOK AN ENTRY-LEVEL

JOB WITH MCDONALD'S.

>> I'M 50.

I'M PROUD TO SAY IT.

I WISH I GOT A BETTER JOB.

I DIDN'T FINISH MY EDUCATION, AND I'M PAYING

THE PRICE FOR IT.

>> REPORTER: ED JORDAN HEARD THAT A BETTER PAYING

POSITION OPENED UP AND THEY MOVED INTO A HOTEL.

SHE BRINGS HOME $189 A WEEK.

>> MY RENT IS 250 A WEEK.

I'M HAVING TO BEG AND BORROW ALL OVER THE PLACE.

I DON'T KNOW WHAT COLE TOWM PAY BACK.

>> REPORTER: IT WOULD SEEM THAT JORDAN WOULD BE

THRILLED ABOUT THE WAGE INCREASE BUT SHE FEELS

LIKE UPSTATE IS BEING SEGREGATED FROM NEW YORK

CITY AND WOULDN'T MIND EXPRESSING THAT.

>> I WOULD HAVE TO SAY NEW YORK IS NEW YORK AND NOT

SEGREGATED BY CITIES, UPSTATE, DOWNSTATE, WE'RE

ALL NEW YORKERS.

WE ALL NEED 15 AN HOUR AND NEED IT NOW.

NOT FROM 2018 TO WHENEVER.

>> AND THE THE MINIMUM WAGE RAISE, BUT ALL

BUSINESSES LIKE BEN&JERRY'S BELIEVE IT

COULD BE DIFFICULT.

>> FOR A KID TO BE MAKING $12 OR SO AN HOUR, I MEAN

AT 16, THAT'S PRETTY GOOD MONEY.

>> REPORTER: PATRICK IS A SINGLE BUSINESS

FRANCHISEE.

HIS MODEL IS SEASONAL.

MEANING HE HAS AN OFFSEASON, PRE-SEASON AND

INSEASON STAFFING LEVELS WHICH COULD BE AS LOW AS

EIGHT PEOPLE IN THE WINTER AND AS HIGH AS 50 PEOPLE

IN THE SUMMER.

ON THIS DAY, THE STORE IS HOLDING ITS ANNUAL FREE

CONE GIVE-AWAY.

THE BEN&JERRY'S PARENT COMPANY UNDERWRITES THE

ICE CREAM AND HE WILL SERVE 9,000 PEOPLE.

>> IT'S A MARKETING PLOY.

IT'S NORMALLY NOT THIS BUSY.

>> FOR HIM, RAISING THE MINIMUM WAGE PUTS HIS

BUSINESS ON SHAKY GROUND.

>> THE FIRST TWO YEARS ON PAPER, WE CAN MAKE-- I

ARGUED DOWN AT THE ASSEMBLY WITH PEOPLE

SAYING, LOOK, UP TO $12 AN HOUR, I'M CONFIDENT WE CAN

MAKE IT.

IT'S THE $12 TO $15 RANGE WHERE THINGS GET MESSY.

>> REPORTER: IT'S BECAUSE OF TESTIMONY FROM BUSINESS

OWNERS LIKE HIM THAT THE LEGISLATURE AGREED TO SLOW

THE GROWTH OF THE MINIMUM WAGE UPSTATE.

A STOP GAP WAS IMPLEMENTED AT $12.50 SO LAWMAKERS

COULD EVALUATE THE IMPACT OF THE INCREASED WAGES

AGAINST THE UPSTATE ECONOMY.

AND THEN CONSIDER IF THEY WOULD CONTINUE TO RAISE

THE WAGE TO $15 OR NOT.

>> I'M HAPPY THAT THE UNITTEN AND THE FIGHT FOR

15 MOVEMENT SAID HEY, LOOK WHAT WE DID, BUT FIVE

YEARS FROM NOW, I HOPE WE DON'T ALL LOOK BACK AND

SAY, LOOK WHAT YOU DID.

>> REPORTER: ASIDE FROM THE COST TO SMALL

BUSINESSES, PATINO WORRIES THAT INCREASING THE WAGES

WILL INCREASE INFLATION.

>> THAT MONEY HAS TO COME FROM SOMEWHERE AND IF

EVERYONE SUDDENLY IS MAKING $15 AN HOUR, HAS

ANYTHING REALLY CHANGED.

THE $7 HAMBURGER YOU USED TO BUY IS NOW, $8 OR $9,

AND ARE YOU GAINING ANY REAL PURCHASING POWER?

>> REPORTER: IF PRICES INCREASE, HE WORRIES THAT

A BUSINESS LIKE HIS WHO SERVE A PREMIUM PRODUCT

WILL BECOME UNAFFORDABLE.

>> AT THE END OF THE DAY, BIG FIRMS, GLOBAL FIRMS,

COMPANIES THAT HAVE HUGE FOOTPRINTS AND LOSS OF

CAPITAL THAT DO HAVE MULTIMILLION DOLLAR CEOS

WILL HAVE MORE MARKET SHARE THAN THEY DO NOW.

>> REPORTER: NICK MANN SAYS IT'S THE LARGER FIRMS

THAT WILL BE ABLE TO ABSORB THE HIGHER COST OF

WAGES AND SMALL BUSINESSES WILL BE SWAMPED AND GO

UNDER.

HE SUSPECTS THE $15 MINIMUM WAGE WAS CHOSEN

FOR ITS CONVENIENCE OBLITERATION WITH THE WORD

FIGHT, A RALLY CRY FORTH MOVEMENT AND QUESTIONS THE

LIVING WAGE THEORY BEHIND IT.

>> WHY STOP AT 15?

WHY BE A CHEAPSKATE?

WHY NOT 30?

YOU'RE ACTUALLY TELLING PEOPLE IN THOSE REALITIES

WHO LIVE AND WORK IN MANHATTAN THAT $15 IS

GOING TO PUT THEM IN THE MIDDLE CLASS?

>> HE SAID THE GOVERNMENT REALLY WANTED TO HELP,

THEY WOULD HAVE EXPANDED THE EARNED INCOME TAX

CREDIT.

>> IT'S LONG OVERDUE BECAUSE THE MINIMUM WAGE

THAT WE HAVE NOW PRIOR TO THE LEGISLATION IS

ACTUALLY LOWER IN REAL TERMS THAN THE MINIMUM

WAGE IN 1970.

>> REPORTER: AN ASSEMBLYMAN FROM THE

ALBANY AREA SAYS ADJUSTED FOR INFLATION AND THE COST

OF LIVING, THE MINIMUM WAGE SHOULD BE $15 AN

HOUR.

>> IF THERE'S MORE AGGREGATE DEMAND IN THE

ECONOMIC SYSTEM THAT WILL DRIVE THE ECONOMY FORWARD

AND THAT'S THE BEAUTY BEHIND THE MINIMUM WAGE

AND THAT'S THE THEORY THAT I SUBSCRIBE TO.

>> REPORTER: NO ONE REALLY KNOWS THE FULL EFFECT IN

MAKING ENTRY LEVEL WAGE A SUSTAINABLE ONE, WHICH FOR

MCDONALD'S AND JAQUI, IT'S THE DIFFERENCE BETWEEN

LIVING WEEK TO WEEK AND A MORE PERMANENT

ARRANGEMENT.

>> I CAN SAVE MONEY AND GET AN APARTMENT AND SAVE

BIG MONEY TO PUT ASIDE AND HAVE IT TO FALL BACK ON.

NOT JUST PAY MY RENT AND BE BROKE.

>> REPORTER: JORDAN SAYS ALL WORKERS LIKE HERSELF

ARE ASKING FOR IS A LEG UP.

THE FIRST INCREASE TO THE MINIMUM WAGE WILL KICK IN

THIS YEAR AND CONTINUE TO INCREASE BY 70 CENTS EVERY

YEAR AND TO REACHING 12.50 IN 2021.

SUPPORTERS INCLUDING THE GOVERNOR BELIEVE THE

MINIMUM WAGE UPSTATE WILL EVENTUALLY MATCH $15

MINIMUM WAGE NEW YORK CITY WILL REACH BY 2018.

You May Also Like