DC Dilemma: Fair Votes and Fair Pay versus Tip Subsidies for Owners

New Orleans  New Orleans is a service worker, hospitality industry city, as are an increasing number of other areas in the United States.  Tips are always an issue when so much of the workers’ income depends on them, especially when employers pay the federal minimum wage for tipped workers of $2.13 per hour versus the federal minimum for other workers of $7.25 per hour, which has been frozen for what seems like most of this century.  In some states and cities, like San Francisco, Seattle, and, most recently, Flagstaff, Arizona, voters and public officials have taken steps to try to deal with this issue.

Washington, DC put this issue on the ballot as well.  The voters passed the measure overwhelmingly to stairstep up the level for tipped workers to the full minimum wage in the city which is on its way to $15/hour.  In a democracy most of us, for or against, would have thought that settled the matter, the voters have spoken.  In Washington though somehow the National Restaurant Association, always on record against the measure before and after the vote, has joined with some of the restaurants in the capitol city and convinced the DC city council to review the measure and potentially overturn the vote of the people.

How could this be possible?  All of us know Washington has become crazytown, but we thought that was just on the federal level.  We didn’t realize that the new autocracy had leeched down to the city level as well.

On Wade’s World, I talked to David Cooper, a Senior Economic Analyst for the well-regarded Economic Policy Institute (EPI) and the deputy director of EARN, the Economic Analysis Research Network, about a study he authored in the middle of this mess to remind the city council that in fact the evidence thus far is that workers do better financially in “one wage” cities than in tipped cities.  In DC, the numbers also matter because the data Cooper has marshaled also remind anyone interested that in a majority African-American city, blacks do worse by a more than 20% margin than white workers on tips, and black women do the worst of all, so they stand to benefit critically from a “one wage” program.

Cooper’s report reminds workers and the public of a key fact about the “tipped” wage that the restaurant folks like to sluff over as they pretend to be concerned about their workers income.  The level between the tipped minimum whether $2.13 federally or over $3.00 in DC is a direct subsidy from the worker’s tips provided by the customers for their excellent service which is then effectively passed over to the employer until the DC minimum or elsewhere the federal minimum is reached, and that’s nearly $10 an hour.  What is left after the worker de facto pays their employer for their space on the floor or behind the bar is all that is gratis.   So even ignoring the basic democratic facts that the voters have spoken, how could this ever be fair?

I’m reminded of an organizing committee meeting of a bunch of carriage drivers in the French Quarter that we organized years ago.  At one union meeting an argument broke out when the members started debating whether their work was  “a job or a hustle.”  That says it all.  These are jobs.  They need to be paid with the respect, dignity, and wages that the workers deserve.  The rest is lagniappe.

***

Please enjoy Rosanne Cash & Sam Phillips’ She Remembers Everything.

Guiding Light by Mumford & Sons 

Carl Broemel’s Starting from Scratch.

Thanks to KABF.

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The Poor Pay the Price for Another Hurricane

Residents at Trent Court Apartments try to wait out the flooding. (Gray Whitley/Sun Journal via AP)

New Orleans   Keisha Monk made the front page of the New York Times.  I doubt if this was on her top ten list of life’s hopes and dreams.  She lives, or at least lived until recently, in the Trent Court public housing project in New Bern, North Carolina, which turned out to be in the path of wind, rain and flooding when the river rose in the wake of Hurricane Florence.  Her unit and others, not far from the river’s bank, were flooded, ruining virtually everything, and likely making her unit uninhabitable.

The rivers in North Carolina are still rising.  I got a call from a Local 100 person in Houston who was being sent alerts by FEMA to get ready to be deployed as a contractor to do home inspections as soon as the water receded and anyone could drive in and assess the damage.  Keisha Monk will not be on his list.  She’s not a homeowner.  She’s simply a lower income, public housing resident, who was happy to have finally found a home in Trent Court.  She might get a check from FEMA.  Eventually.  After a mountain of paperwork.  She won’t get anything but temporary housing though.  If she is lucky.

An article mentioning Monk was on the front page of the Times, but what really caught my eye was not Keisha or Florence, but the word, “Katrina” which still has a visceral trigger for me even after thirteen years.  There were some sentences from reporter, Richard Fausett, that capsulized the horror of the aftermath that Katrina, Sandy, Harvey, Ike, Irma, and many others that have brought stigma to their human counterparts for life and scarred millions for the rest of their lives as well.  He wrote,

She [Keisha Monk] also realized that she was now a player in the kind of redevelopment drama that tends to swamp storm-battered places like this – a story of race, class, gentrification and safety fears, and questions without easy answers about who gets to live on often alluring, sometimes treacherous, waterside real estate.  She is also being reminded after Hurricane Katrina, that the poor are always vulnerable – to the vagaries of the real estate market and to the perceived value of their residences in good times and the ravages of Mother Nature when disaster hits.

The future of Trent Court, like so many center city public housing projects in cities both large and small, was already precarious.  There was a plan to relocate people and build something new, maybe there, maybe nearby with market rate housing and eighty units still available for the poor.  Many, like Monk, would likely not be on the list for those eighty units, and they are years away as life continues to grind down hard on low-and-moderate income families.  The problem is global, not local, as we heard in Asuncion about the relocation of thousands of families there from areas where they have lived for generations because of flood risk.

Organizations and individuals talk about a “right to the city,” but as we know from Katrina, this is another right that requires a constant fight, and is often lost.

We all know this is not a story that will end well.  At least not for Keisha Monk, her family, and the other residents of Trent Court.  Living on the wrong side of the tracks was about yesterday, but on the bad side of the floodplain is the new and constant misfortune for the poor.  As one of Monk’s neighbors said, it will just be a case of another area where riverfront property is opened up for rich people “to walk their dogs.”

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