Revised Living Wage Policy Approved by Chapel Hill-Carrboro City Schools

The Board of Education for Chapel Hill-Carrboro City Schools unanimously approved a revised living wage policy for full-time employees and contractors on January 19.

The policy aims to keep district salaries congruent with living wage estimates from Orange County Living Wage, a non-profit group that encourages voluntary payroll compliance from employers.

Those estimates came from a formula devised in 1997 by House the Homeless, a Texas-based advocacy organization that held mass protests near post offices across the country in 2001.

According to that formula, the local living wage rate is $13.15 per hour, which rose from $12.75 per hour last year due to an increase in federal fair market rent estimates for one-bedroom apartments.

Under the approved policy, employees of Chapel Hill-Carrboro City Schools that work 30 or more hours per week will receive at least $13.15 per hour, but certain restrictions apply to contractors.

Ken Soo, an attorney with ties to the district, noted that board members would only be able to request that contractors be paid a living wage by their parent companies.

“You cannot make an employer, or rather a private employer, pay a living wage,” cited Soo. “This is a way to negotiate it, but when you negotiate it, you need to make sure you understand what you’re really negotiating for.”

Those requests are to be solicited by the district during its bid process for labor – a policy provision that led board member Andrew Davidson to consider the ramifications of hiring contractors.

“Maybe it’s possible to bring some of those positions back in-house,” mused Davidson. “In order to get those contracted employees up to that living wage, there’s — they’re making a margin.”

The district currently spends approximately $4 million per year on contracted services that include child nutrition management and custodial applications for multiple schools.

According to the approved policy, provisions for living wages would add another $700,000 to the gross cost of employing contractors to perform those services in the district.

Todd LoFrese, the assistant superintendent of Chapel Hill-Carrboro City Schools, admitted that paying more for contractors would be inevitable if the district wants them to have living wages.

“Whether it’s renegotiated or whether it’s through a bid process, the costs are going to increase,” explained LoFrese.

The bidding process for contracted labor in the district is expected to begin as early as March of this year, with approved contracts going into effect on July 1.

Revised Living Wage Policy Approved by Chapel Hill-Carrboro City Schools

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