November 20-26, 2017 Keeping You Connected Locally Owned & Operated TompkinsWeekly.com Vol. 12, No. 39 THE WAGE QUESTION: Where’s the line between fair pay for employees and too high a burden for employers? By Rob Montana Tompkins Weekly very two years, Alternatives Federal Credit Union issues its Living Wage Study. EThe living wage – the update released in August saw it increase to $13.90 per hour for people who have employer-provided health insurance, $15.11 per hour for those who don’t – is meant to show how much people in Tompkins County need to earn to live here. That figure takes into account the cost of housing, transportation, food, communication, healthcare, recreation, savings, miscellaneous expenses and taxes. Now, compare that to the federal minimum wage of $7.25 per hour, and the New York state minimum wage of $9.70 per hour, and you’ll see a significant disparity. to that level. Especially if there is In Tompkins County, there are a large difference between current actually more than 100 businesses average wages and that living wage. and organizations – including “Instead policy should look Tompkins County’s government at increasing wages slowly to give positions – that pay a living wage. businesses time to adjust,” Kaletski But the conversation continues about added. “For instance, in New York, what’s fair pay and how much local the current policy increases wages by employers can afford to fork over Lance Stephen Elizabeth Kenny a dollar or so each year (depending before the burden becomes too much Compa Sweet Kaletski Christianson on location and industry), so for them to remain competitive in the businesses have time to figure out marketplace. remember that when the federal stagnate,” he said, noting that a strategies that will account for these So, where’s the line that achieves minimum wage was established, it period of about a decade in the 1990s increases in cost.” the most fair situation for both was on the basis of a living wage saw no increase. “If it was tied to a Sweet thinks a more localized employees and employers? equation. means for adjustment, it wouldn’t be approach to wages would be best. “It is an elusive target,” said “How much does it cost for a a political issue, and it wouldn’t be “The standard would have to Lance Compa, a senior lecturer house? How much does it cost to seen as something that is looking to be tied to the local community,” in Cornell University’s School of feed a family?,” he said. “The problem go above and beyond what minimum he said, noting that costs are Industrial and Labor Relations. “It’s is that calculation was never tied to wage was meant to be.” much different for people living in always going to come down to which any means for adjusting it. Elizabeth Kaletski, assistant Tompkins County, New York City side you’re on, whether employers “Families are spending a lot more professor of economics at Ithaca and Mississippi. make more profit or employees make today on basic needs than they did,” College, said cost of living calculators Alternatives living wage study is more wages. If you go to one side Sweet added. “A lower income family should be used to determine a fair “quite rigorous,” Compa said, adding too much, you’re going to wreck the may be spending more than half of wage for particular region. that it provides a good idea of how economy. their income on rent; in the 1960s, a “MIT has developed a well much people need to make to live “If employers rely on exploitation lower income family may be spending promoted one, but local organizations adequately. of labor to be profitable, the workers a third of their income on rent.” have created their own as well – it “You always come back to a are going to suffer,” he added. “If the Not providing a means for is thought that local organizations value question: What does adequate wages rise too high, businesses will changing minimum wage tied to would have a better pulse on what mean?” he said. “There is no final go out of business. It’s always about inflation or increasing cost of living individuals in the area need to meet answer on that, and it depends on finding the right balance.” is a big part of the problem, Sweet basic needs,” she said. “However, where one stands in terms of their Stephen Sweet, an Ithaca thinks. calculating wages based on cost of own values.” College professor in the sociology “Our adjustments to minimum living (living wage) doesn’t mean we department, said it’s important to wage are often political, and it can should automatically increase wages Continued on page 13 ALSO IN THIS ISSUE Spotlight On ... 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To learn more, we asked mission? community, now and in the future. on-profit organizations Chief Executive Officer George GF: Community Foundation A few of the many organizations are plentiful throughout Ferrari about the foundation’s role in assesses the needs in our community, we support include: Camp Kesem at Tompkins County, and make the community. raises funds, invests gifts from Cornell University, which offers a free a big impact in our communities. donors, and awards grants to week of summer camp for children N Tompkins Weekly: What is your nonprofit organizations addressing touched by a parent’s cancer. Catholic Despite their contributions, area non- profits can sometimes go unnoticed mission? local challenges. We believe the Charities of Tompkins /Tioga or unknown. In an effort to shine a George Ferrari: The mission organizations that we support received our help to open a new safe spotlight on those who are making a of our Community Foundation is will demonstrate specific results Continued on page 7 difference in our county, Tompkins to improve the quality of life in Weekly will be showcasing these Tompkins County by inspiring and organizations on a regular basis. supporting enduring philanthropy. Photo by Sheryl Sinkow Community Foundation staff, from left, includes Chief Development Officer Nancy Massicci, Philanthropic Services Officer Amy LeViere, CEO George Fer- rari and Program Officer Janet Cotraccia. Wide Champagne Selection OPEN THANKSGIVING DAY 9am-2pm We hope your holiday is filled to the brim with joy, friendship, love, and plenty of good cheer. As we look back on the past year, we have so many fond memories with customers like you. 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