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Tuesday, 07 February 2012
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Living On The Edge E-mail
by Clare Hubbard


photo by Cathryn Shaffer
According to the Employment Security Commission of North Carolina, the state’s current unemployment rate has dropped to 4.3%, below the national average and its lowest point since December 2000. However, working people who earn average wages know that the cost of living far exceeds the wages paid for labor. In addition, one of the most discussed issues amongst local organizations and community groups is the minimum wage bill, currently waiting approval in the NC legislature. Several community leaders are joining the living wage movement to require that local policymakers adjust the minimum wage to meet the real cost of living.


 
The current minimum wage in North Carolina is $5.15 per hour, the same as the federal minimum. That is significantly below the living wage, which is about $11 per hour for a single worker living in Asheville. Adding the costs of raising a family, health care, food, and housing raises the living wage to about $15 per hour.

Last year the NC legislature failed by two votes to pass legislation that would increase the state’s minimum wage to $6.15 per hour. A revised bill, which would increase the minimum wage to $6 per hour, has passed the state House, but it still needs to pass the Senate and be signed by the Governor to become law.

According to the NC Justice Center, the federal minimum wage was last increased over a two-year period from $4.25 in 1995 to $5.15 in 1997. Bob Smith, Executive Director of the Asheville-Buncombe Community Relations Council, is very concerned with wage stagnation. “The minimum wage is at the whim of Congress, and it’s been seven or eight years [actually almost 10] since it’s been changed. That itself is a whole other issue. Asheville has a very high cost of living, and working people are suffering,” Smith said.

A number of organizations are banding together to create a living wage campaign in Asheville and Buncombe County, echoing a statewide coalition called the NC Fair Wages Campaign. Melissa Fridlin of Working Families Win, and Mark Siler and Tyrone Greenlee of Christians for a United Community, are working with area activists to join the wage coalition. Several meetings have been held to come up with some possible solutions for the plight of the working class. On Feb. 28, 2006, the group came up with an approach that would create a committee of community members, labor representatives, and a variety of local non-profits are working together to support the minimum wage bill.

At a Feb. 21 meeting, the Buncombe County Board of Commissioners discussed the living wage and job benefits. While nothing was set in stone, commissioners considered ways to create more jobs with benefits and increased wages by making some changes to the current business incentives program. The board then voted to strengthen its current policy and create more jobs by refocusing their incentives for local businesses.

Smith also points out that “People on the [Asheville City] Council are aware that you cannot live on the minimum wage in Asheville. Realistically, all they can do is look at the city jobs and make sure people working for the city are being paid enough to live,” he said. “I know that the mayor is concerned with city workers being able to live in the city.”

In 1997, the organization NC Equity, which works for the economic strength of women and families through public policy, research and education, published a “self-sufficiency standard” for North Carolina. Covering all 100 counties in NC, the standard considered costs of food, childcare, health care, and housing, and determined that federal wage guidelines were not adjusted to the cost of living.

This standard is still used today to illustrate the need for higher wages and explains the growing number of workers in need of subsistence. “There’s not much for a single person working a minimum wage job,” adds Smith. “There are food stamps, which are getting harder and harder to receive; public housing subsidy, which works under the Section 8 voucher; a special insurance policy for kids whose parents receive a low income, or you have to live with a friend or relative just to get by. It’s a difficult situation,” said Smith.

Smith also leads the Asheville-Buncombe Fair Housing Commission, which works with victims of housing discrimination and holds ongoing conversations with the housing community and the people in need of reasonably priced shelter. Although Smith has made some headway in addressing the link between poverty and the living wage, his current program, like many others across the country, is itself facing budget difficulties. “Programs for the poor have suffered from the recent hurricane, the war, deficit… money has been diverted from those programs to help the immediate needs of those affected by these recent devastations,” Smith continued. “We’ve had our budget cut $100,000 because of the hurricane. Those people need the help, but the issue of fair housing in Asheville is just getting worse.” said Smith.

In addition, the NC Low Income Housing Coalition, whose mission is “to work for decent, safe, and affordable housing opportunities that promote self-determination and stable communities for low-income families,” says the need for higher wages is directly related to the growing trend of unaffordable housing in NC. According to their study, a full-time worker in the state, on average, would have to make $10.15 per hour to rent a 2-bedroom apartment.

Business lobbies insist that raising minimum wages would cause small businesses to lay off workers, though there’s no evidence to support the claim, despite years of studies. But the direct benefits of an increase in the minimum wage are clear to most people; national data compiled from the NC Justice Center show that if the minimum wage increased to $7 per hour over two years, the bottom 40% of households (by wages and salary) would receive nearly 60% of the gains.

A statewide increase to $6.00 from the current federal minimum of $5.15 would reflect a 16.5% increase, nine years after the minimum wage was last raised. Given that housing prices in the Asheville area have increase more than 40% in just the past four years, and that the price of gas has doubled since last summer, the NC Senate and Governor should have no qualms about increasing the minimum wage. Otherwise, the legislature may find that working people are fleeing to states with better incomes and a more reasonable cost of living.
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