As the City Council mulls over a living wage proposal for subsidized project employers, Mayor Michael Bloomberg is highlighting the reasons an increase would negatively impact the city’s economic forecast. In a report released by the mayor’s office, 6,000-13,000 jobs would be lost if the “Fair Wages for New Yorkers Act” is enacted.
The report, prepared by consulting firm Charles River Associates, also reveals that the proposed law would decrease jobs because of the strain the increased wage would place on companies. The study is being met with opposition from elected officials and organizations in support of a living wage.
In a statement, Bronx Borough President Ruben Diaz Jr. said, “The mayor made it clear from the beginning that he does not support this bill, and the city then hired consultants to conduct the study that have long and extensive records of bias against not only living wage laws but minimum wage laws as well,” he said.
The act would require city-subsidized projects to pay a living wage of $10 an hour and benefits-New York State’s minimum wage is $7.25. The requirement would apply to any companies receiving $1 million or more in city subsidies.