ADDING UP PROP. 210 : SMALL-BUSINESS OWNERS RAISE SPECTER OF LAYOFFS IF STATE MEASURE TO INCREASE MINIMUM WAGE PASSES, AS BACKERS TOUT CHANCE FOR FINANCIAL INDEPENDENCE.Byline: Deborah Adamson Daily News Staff Writer At 61, when most people are looking forward to enjoying the fruits of their labor in retirement, Ricardo Zalada is barely making ends meet. The Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. garment worker made $170 a week, $220 if he took extra work home. He supports a wife, Eva Neomi, and a 12-year-old daughter. His wife quit her minimum-wage job in the garment industry a year ago after their eldest daughter went to college on a full scholarship. Eva, 43, is back in school taking computer and English literacy classes in hopes of finding a better job. ``With this minimum wage, we can't live,'' Zalada said. ``We use public transportation. We eat low-quality food. We cannot rent a good apartment and we buy used clothes for our children. This is terrible for us.'' Recently, Zalada lost his job after his employer found out that he testified at a hearing to raise the state's minimum wage through Proposition 210. Zalada's story highlights the intensity of the debate over Proposition 210, which would boost California's rate to $5 an hour on March 1 and then to $5.75 on March 1, 1998. The scenario scares small businesses, especially restaurant and service companies with a high percentage of minimum wage workers on their payrolls. Nancy Lopez Nancy Lopez (born January 6, 1957) is one of the most accomplished women in the history of professional women's golf. Lopez was born in Torrance, California. She is also known as Nancy Lopez-Knight, since her marriage to former Major League baseball player Ray Knight. , who manages the Las Hadas Mexican restaurant in Northridge, said the federally mandated minimum wage hike Oct. 1 already forced her to lay off three employees - a busboy, a hostess and a kitchen helper. ``It's been tough,'' she said. Proposition 210 aims to accelerate the gains for minimum wage workers, who already are in line to move up to $5.15 on Sept. 1 when the second phase of the federal law takes effect. At $5.75, California would match Washington, D.C., with the nation's top minimum rate. The measure enjoys public support. In a statewide poll conducted for the San Francisco Examiner The San Francisco Examiner is a U.S. daily newspaper. It has been published continuously in San Francisco, California, since the late 19th Century. History 19th century The beginning of the Examiner is a topic of some controversy. Oct. 12-14, 69 percent of the respondents favored raising the minimum wage, 15 percent were opposed and 16 percent were undecided. A July survey registered support at 79 percent. Sen. Hilda Solis Hilda L. Solis (born October 20 1957), an American politician, has been a Democratic member of the United States House of Representatives since 2001, representing the 32nd District of California (map). , D-El Monte, is the author of the Nov. 5 ballot measure, which is backed by unions and worker advocacy groups. ``We should increase the quality of life of people who work,'' said Solis, who spearheaded the Proposition 210 campaign after an almost identical Senate bill died in an Assembly committee last year. ``These people are not on welfare, so we should reward them.'' With higher starting wages, the initiative hopes to entice more people on welfare to go back to work. A family of three gets $907 a month - $594 for living expenses, $313 for food stamps food stamp n. A stamp or coupon, issued by the government to persons with low incomes, that can be redeemed for food at stores. Noun 1. - plus medical benefits, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the state Department of Social Services social services Noun, pl welfare services provided by local authorities or a state agency for people with particular social needs social services npl → servicios mpl sociales . Business advocates emphasize the need to balance business reality with humanitarian efforts. While calling the federal raise reasonable, they say Proposition 210 would be a burden. ``It's extreme and couldn't come at a worse time . . . on the heels of the federal increase,'' said Sean Garrett, spokesman for the Alliance to Protect Small Businesses and Jobs, a coalition of restaurants, hotels and motels Motels may refer to any of the following:
Businesses have to pay higher workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. expenses on higher wages. There's also a trickle-up effect: Wages of existing workers will have to rise so they still will make more than the new hires. Proposition 210 is more sweeping than the federal increase, mandating the minimum wage for all workers. The federal law excludes certain types of workers from earning the minimum wage - such as farm labor, full-time students Full-Time Student A status that is important for determining dependency exemptions. An individual enrolled in a post-secondary institution may be eligible for certain tax breaks. Notes: The full-time status is based on what the individual's school considers full time. and unskilled new hires during their training period at a business. ``It's not going to hurt the Intels of California. It's not going to hurt Toyota. It's not going to hurt the real big companies,'' Garrett said. ``Who it's going to hurt is the small business.'' The double whammy double whammy Noun informal a devastating setback made up of two elements double whammy n (col) → palo doble double whammy n (inf of the federal hike compounded by the state measure would result in 33,700 job losses in California next year and 106,400 lost positions in 1998, according to an economic impact study by Eric Solberg and Andrew Gill at California State University, Fullerton California State University, Fullerton, commonly known as CSUF, CSU Fullerton, or Cal State Fullerton, is a part of the California State University system. The University is located in the city of Fullerton, California, in northern Orange County. . Solberg and Gill estimate that 66,100 of those terminations would be attributable to Proposition 210 alone. Studies cited by the California Chamber of Commerce forecast that a $5.75 hourly rate would end up costing $1 billion to $2 billion annually. Businesses say that consumers will pay those costs. Bonnie bon·ny also bon·nie adj. bon·ni·er, bon·ni·est Scots 1. Physically attractive or appealing; pretty. 2. Excellent. Barth, owner of Bonnie's Cookies, Baskets & Gifts in Granada Hills, feels that she has no choice but to pass price increases to her customers. As a small shop, her firm cannot afford to absorb both wage increases since 12 out of her 17 employees earn around minimum wage. Tony Rolland, director of the Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, Franchise Association, a trade group of Burger King franchisees, said businesses are ``scared to death. They are just coming out of this recession and, oh no, here we go again.'' Rolland, who owns three Burger King restaurants, said he's still adjusting to the federal increase. About 30 out of his 115 workers earn minimum wage. But if Proposition 210 passes, he might stop offering full-time workers health insurance. Solis has heard these arguments before. ``They say that (jobs will be lost) every time there's an increase,'' she said. ``I don't think it's going to be as dramatic as they say.'' After all, she said, increased wages will be spent on consumer goods consumer goods Any tangible commodity purchased by households to satisfy their wants and needs. Consumer goods may be durable or nondurable. Durable goods (e.g., autos, furniture, and appliances) have a significant life span, often defined as three years or more, and and pay for living expenses for the minimum wage earner, which will help businesses. Companies also are more resilient than they claim to be, she added. ``They oppose any increase,'' said Miguel Contreras Miguel Contreras (September 17, 1952–May 6, 2005) was an American labor leader. He "was known as a king-maker for both local and state politicians."[1] , executive secretary of the Los Angeles County Federation of Labor. ``They always do a ``Chicken Little'' act, that the sky is falling. But minimum wage goes up and life goes on.'' The Solberg-Gill study does show that while companies dependent on low-wage workers will be pressured to raise prices, overall increases will be minimal because most firms do not hire many minimum wage workers. For the same reason, the report suggests that business failures or flight out of California will be negligible. One commerce group, the Latin Business Association, supports Proposition 210. President Frank Moran Frank Moran (born March 18, 1887 in Pittsburgh, Pennsylvania, died December 14, 1967 in Los Angeles, California) was an American boxer who fought twice for the Heavyweight Championship. Moran studied dentistry at the University of Pittsburgh where he also played football. said his members are willing to adjust to the wage hikes and find other ways to protect profits. ``As a private entrepreneur, I'm willing to give back to the community and take a cut,'' he said. ``I know that somehow along the line, I'll get it back.'' WORKER PROFILE Almost 2 million Californians - 14 percent of the work force - earn below $5.75 an hour, the new minimum wage proposed by Proposition 210. A few facts about those workers: Seven out of 10 are 20 years or older and slightly more than half are Latino or from other minority groups. Three-quarters work in retail or service industries such as restaurants and hotels. 56 percent work less than 35 hours a week. This work force is almost evenly split between men and women. Six out of 10 have never been married, according to the 1995 Current Population Survey for California, a state government report. CAPTION(S): Photo, Box Photo: (Color) Dolores Dolores (or Delores) was a common given name (until the 1960s in the USA); it is cognate with the English word "dolorous" (meaning sorrowful) and equivalent in meaning. Loped, and her daughter, Nancy, laid off workers at the restaurant when the minimum wage went up Oct. 1 Gus Ruelas/Daily News Box: (Color) WORKER PROFILE (See text) |
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