City, citizens of Eugene need living wage law.

Byline: JEFF CHAPMAN For The Register-Guard

THANKS TO THE WORK of a broad coalition of community, labor and religious groups, the city of Eugene has an opportunity this year to join more than 80 cities and counties nationwide that have passed a "living wage" law. Passage of the living wage law would send a message that tax dollars should not be used to perpetuate poverty-level wages.

It goes further than sending a message, however; the most important impact is that many low-wage workers in Eugene would be closer to being able to provide basic necessities for their families.

Local living wage ordinances are an important part of a nationwide movement to ensure that working families are able to make ends meet. Local governments such as the city of Eugene play an important role in local economies - as direct employers, and also through contracts with private employers. In addition, cities provide financial assistance and public subsidies to encourage economic and job development.

Living wage laws improve the accountability of tax dollars, ensuring that tax dollars spent on employment are used to provide jobs and wages that allow families to live in dignity and become self-sufficient. They keep local tax dollars from going toward wages so low that working people are forced to seek their regular health care in the public hospital emergency room or to rely on emergency food assistance to meet their families' regular nutritional needs.

The proposed Eugene ordinance sets the living wage at 200 percent of the federal poverty line. The Economic Policy Institute has calculated that one in four of the families with incomes below this level experience hardships such as food insecurity, eviction and lack of necessary health care.

In the Eugene-Springfield community, it took an annual income of $26,598 in 1999 for a single parent with one child to pay for basic needs, translating to a wage of $12.79 for a full-time worker. EPI computed the actual costs of basic necessities in Eugene: food, housing, health care, child care, transportation and taxes. These no-frills budgets do not include such "luxuries" as saving for a house, preparing for retirement, vacations, restaurant meals or entertainment.

Once the ordinance is fully phased in, workers employed by the city, or by businesses that receive contracts or subsidies of sufficient size, will earn at least $11.42 per hour ($14.21 per hour if the employer does not provide health insurance). According to the EPI calculations, this wage is right on target to get by in Eugene.

Experiences in other cities around the country demonstrate that the benefits of living wage laws extend beyond the direct benefits of a higher wage for affected workers. A living wage standard increases self-sufficiency and purchasing power not only for directly affected families, but also helps other low-wage workers as well, lifting the wage floor. The effects of this are felt throughout the economy through lower demand on government support services and increased consumer spending, especially in low-income communities.

Living wage laws reward businesses that have chosen the high road by competing on the quality of their product or service. High-road practices, including high wages, will be encouraged in future economic development and job creation activity in Eugene. This is a benefit to the entire city.

The living wage can also lead to efficiency gains for employers of low-wage workers. Raising the wages of the lowest paid workers increases morale, decreases turnover, and improves the quality of applicants. All of this leads to an increase in efficiency. The small costs incurred by the living wage can be absorbed through these gains in efficiency and productivity.

Eugene now has the opportunity to provide a living wage for workers who contribute to the wealth and well-being of the city. They deserve no less.

Jeff Chapman is a policy analyst for the Economic Policy Institute in Washington, D.C. The Eugene-Springfield Solidarity Network, which developed a living wage proposal in Eugene, based its proposed wage levels on calculations performed by the institute.