Mayor Kleinschmidt: "We Have To Say Yes" To Employers Who Pay Living Wages

On Tax Day, April 15, hundreds of low-wage workers marched in Raleigh demanding better pay, specifically, $15 dollars an hour. They’re part of the Fight for $15, a nationwide effort to raise the minimum wage to $15, or at least up from the current rate of $7.25 an hour.

But Chapel Hill Mayor Mark Kleinschmidt notes there’s little political will at the state or federal level to make this happen. Instead, he says it’s time citizens vote with their dollars.

“Places like McDonald’s are asking us, ‘would this buy us some goodwill? Are you more likely to come to us if we start taking care of our employees?’ We have to say, ‘yes.’”

Local governments including the Towns of Chapel Hill and Carrboro, Orange County government and both local school districts have committed to paying their lowest-earning employees a base rate ranging from $11 to $13 dollars an hour.

What constitutes a living wage varies depending on location. It’s considered the amount a worker needs to earn to pay for food, childcare, healthcare, housing, transportation, and other basic necessities.

According to MIT’s living wage calculator, a single adult living in Orange County would need to earn at least $9.00 an hour. For two adults raising one child, that rate would need to be at least $18.50 an hour to make ends meet.

Kleinschmidt says low pay is a central factor in Chapel Hill’s affordable housing crisis.

“Yes, it’s true we don’t have an adequate supply to meet the need, certainly we need to work on the supply side of that, but we also need to work on making sure people are paid,” says Kleinschmidt. “If you’re at 30 percent of the median income, you’re going to have a hard time that’s affordable anywhere in the region, not just Chapel Hill.”

In Durham and Asheville, small businesses that pay a living wage can get certified by an independent group, allowing shoppers to choose to support their pay policies.

Kleinschmidt says it might be time for something similar in Orange County.

“We need to be responsive to efforts by companies who are looking for ways to enhance their reputations to say, ‘yes, you’re getting it right,’ whether they are national chains or local businesses.”

He cites Costco as a good example of how businesses can use a living wage policy to promote goodwill among consumers.

“There’s a way to be a better corporate citizen, and one of those ways is to treat your employees in a way that’s better than your competitors treat their employees,” says Kleinschimdt. “Not only are you attracting better talent and inspiring greater productivity, but you’re creating a competitive distinction between you and your competitors. Hopefully that goodwill will draw in more consumers.”

Mayor Kleinschmidt: “We Have To Say Yes” To Employers Who Pay Living Wages

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