Orange County NC Website
t - <br /> A Report Examining a Living Wage Ordinance for Orange County North Carolina <br /> Background and Report <br /> In February 1997, the Orange County Greens requested that the Orange County Commissioners <br /> develop a living wage ordinance for the County. The Board of County Commissioners directed <br /> the County Manager and the Economic Development Commission to develop a report on the <br /> appropriate nature, scope and practical implementation of a living wage ordinance. <br /> This report provides a brief history of living wage ordinances. It then discusses options for <br /> application of the ordinance and poses seven clarifying questions that the Board of County <br /> Commissioners must address. Next, four methods for establishing a specific living wage level are <br /> provided. Finally, management, enforcement, and impact are examined. <br /> History <br /> In 1906 Catholic priest Father John A Ryan, in his book A Living Wage.first articulated the <br /> concept of a"living wage". The current movement began in the early 1990's with Father San <br /> Lupico of Baltimore, who began noticing increasing numbers of working poor at his soup kitchen. <br /> He and others formed a coalition of church-based organizations called Baltimoreans United in <br /> Leadership Development (BUILD). Together with the American Federation of State, County, <br /> and Municipal Employees and an organization of low-wage workers called the Solidarity <br /> Sponsoring Committee, they began work toward Baltimore's adoption of the nation's first living <br /> wage ordinance in 1994. Appendix 1 is a copy of the Baltimore living wage ordinance. <br /> Religious organizations, labor unions, and community activists have continued to promote the <br /> concept in many other cities and states. In most cases, the local push to enact a living wage <br /> ordinance has been prompted by local government downsizing and, more specifically, the growing <br /> trend toward privatization. As cities attempt to control costs, many have contracted with private <br /> businesses to perform work previously completed by local government employees. Workers in <br /> privatized jobs usually receive lower wages and benefits, are temporary employees, and are not <br /> unionized. <br /> The national trend that has most contributed to the living wage movement is the declining buying <br /> power of the Federal Minimum Wage. In 1970, the federally defined poverty level for a family of <br /> three was $3100, and the minimum wage worker's annual earnings were $3200. As can be seen <br /> in Chart 1, the minimum wage has failed to keep up with inflation. A full-time worker in a family <br /> of three, earning minimum wage, now earns well below the Federal poverty level. The current <br /> minimum wage is$4.75 per hour. Beginning September 1, 1997, the Federal Minimum Wage will <br /> increase an additional 8.4 percent to $5.15 per hour. <br />