Wednesday, July 29, 2009

Erie County Legislature Passes Quality Jobs Resolution

Why is Chris Collins against better wages for working families?
Maybe it's the company he keeps.

While Erie County Executive Chris Collins's reelection committee is raking in thousands of dollars in checks from corporations, he is fighting a bill that would make sure Erie County workers get paychecks they could live on. Tell the County Executive to support working families not just big businesses.

Recently, Erie County Executive Chris Collins drafted a resolution to transfer authority to fund non-profit construction projects from Industrial Development Agencies (IDAs) to the Industrial Land Development Corporation (ILDC). Collins's proposal was an end-run around proposed New York State IDA reforms. Collins's ploy would have enabled the ILDC to provide tax-exempt financing of large non-profit capital construction projects without any accountability, transparency, or quality job standards.

Thankfully, good policy trumped bad politics and the Erie County Legislature wisely voted to attach a prevailing wage requirement to non-profit construction projects on Friday, July 24, during a special legislative session. These requirements ensure that economic development dollars are spent in a way that creates quality jobs for local residents.

The common sense reform measures introduced by members of the legislature are a welcome step toward comprehensive statewide economic development reform.

County Executive Collins is refusing to accept the action taken by the legislative body and claims he will continue to pressure lawmakers until he succeeds at eliminating the prevailing rate requirement.

If you would like to tell your County Legislators and Chris Collins that Erie County voters support Quality Jobs in WNY, you can Take Action RIGHT NOW!

What's At Stake?
...

In 2006 legislation was introduced in Albany to bring about comprehensive reform on New York's over 115 Industrial Development Agencies.

Industrial Development Agencies were created in the late 1960's to encourage the retention and growth of industrial, manufacturing, warehousing, and commercial industries.

Essentially IDAs were charged with retaining and creating jobs by offering property and sales tax breaks to business. IDAs were also empowered to offer tax-exempt financing.

However, IDAs have failed to live up to their mission. They have not created quality jobs in our communities but have squandered precious tax dollars on projects that: would have proceeded without tax breaks; have failed to create any jobs; or pirated jobs from another neighboring community. All too often, well connected developers have received tax breaks with few questions asked and little is done when businesses fail to live up to the promises they make.

We need reform to ensure that we're getting our money's worth. By introducing business standards, accountability measures, and transparency reforms, IDAs could become the strategic investment vehicles they were originally intended to be, and with stimulus money on the way, they could create the good jobs we need now.

Despite the recent mess in Albany, this package of reforms has been advancing. Our New York State Coalition - The Initiative for Development Accountability is hopeful that at its special session this fall, the New York State Legislature will act to pass comprehensive IDA reform.

Why is this important to understand? Because the recent action of Erie County Executive Chris Collins and the Erie County IDA was motivated by a desire to escape the common sense and much needed reforms being proposed in Albany.

For the time being we have defeated the County Executive's attempted end-run around statewide reform, but, as state reform moves forward, Collins will continue to search for loop holes. And, other counties throughout upstate are following his lead.

To learn more about the NYS Initiative for Development Accountability or the Coalition for Economic Justice please call 716.892.5877.

Friday, July 24, 2009

Tipped Off!

It's 1991. Congress just granted authorization to the US to use military force to liberate Kuwait, the Dow Jones Industrial Average saw moments above 3,000 for the first time ever, Michael Landon dies, George Sr. occupied the White House, and tipped service workers made $2.13 an hour.

Fast forward to 2009. We elect our first black president, Walter Cronkite passed away, news reports talk of American's first and second currently active wars, public money is thrown at banks to correct their greediness, and tipped service workers make $2.13 an hour.

Today celebrates the third installment of the increase in the federal minimum wage. After decades of offering themselves gracious salary increases that kept up with the rate of inflation, finally decided to substantially increase the federal minimum wage. While it's a moment to celebrate, there are two important things to remember.

1.) INFLATION!! The American dollar is worth less....real wages have actually been decreasing.

2.) Tipped workers are going to see no raise whatsoever. They will be left to struggle and rely entirely on the generosity and socially prescribed gray laws of tipping. Generally a tipped worker walks out the door with on average $8.23 an hour-wage + tips.

Quick Math-what does this mean in annual dollars, assuming the individual works 40 hours a week AND all 52 weeks of the year (which is unlikely), these individuals would make a little over $17,000. Federal Poverty line for a family of 4 is $22,050. Tipped workers are overwhelmingly women, women supporting families. The $2.13 in real terms has dropped 36% since 1991. Dry facts.

So what?

Well, shouldn't Congress raise the minimum wage for tipped workers too? Isn't this just another method of subsidizing business? The Hotel and Restaurant business is projected to be the the 12th fastest growing industry between 2006 and 2016. Pay for these workers is erratic and based on the economic stability of their customers.

While the employer is supposed to fill in the gap between hourly wage and minimum wage, if the employee does not reach minimum wage, there are absolutely ways for the employer to abuse the system and not actually pay what is federally mandated. The system is easily exploited and typically benefits the employer. Due to these abuses, it is estimated that the American Hotel and Motel Administration saves about $1 million dollars a day.

This is a good day. Minimum wage workers will see a difference in their pay check, they will spend money, bolster the economy. However, we cannot forget that some of the workers that on a daily basis improve and directly effect our quality of life, will not see a cent.


For more information on this subject, please the National Employment Law Project report "Restoring the Minimum Wage for America's Tipped Workers."

Monday, July 13, 2009

Strike for Justice!


Our annual Strike for Justice is quickly approaching! This fun filled evening has brought together our members in a relaxed, sometimes competitive, environment for the past several years and we are excited for yet another year of great prizes, mediocre, average, and spectacular bowlers and the opportunity to just enjoy the change makers of WNY.

To sign up your team, please call our office at 716.892.5877.

Saturday, August 8th
7pm-10pm
Kenmore Lanes, 1691 Kenmore Avenue