Irvine considers repeal of living wage ordinance
Irvine city leaders will consider repealing the living wage ordinance that requires contractors doing big business with the city to pay a minimum wage higher than state law requires, and extend that minimum to employees of the company working throughout Orange County.
The item was raised by Councilwoman Christina Shea for further discussion at the May 12 council meeting after a recent $1.1-million winning bid for city custodial services was withdrawn last month when the contractor claimed it was misled. The company’s lawyer indicated it was not made clear that, under the deal, workers in other parts of the county had to be paid the same rate as required by the Irvine ordinance.
The custodial contract was ultimately awarded to the second-lowest bidder at a cost of $80,000 more than the original winning bid.
“We want to make sure we’re fair and we pay people adequately but I really have a big problem with this whole issue of requiring [it of] everyone in the county, you know, like we’re the county police,” Shea said.
The council voted 3-1 to have city staff assess the repeal and bring it back during the May 26 meeting. Members could vote on the change at that time.
Passed in 2007 under a democratic-controlled City Council, the ordinance requires workers for companies with contracts worth $100,000 or more over any 12-month period be paid a minimum of $10.82 per hour with health benefits, or $13.34 an hour without benefits.
The contract standard is based on the compensation Irvine pays its lowest-earning city employees. The state minimum wage in California is currently $9 an hour with an increase to $10 scheduled for next year.
Potentially repealing the ordinance flies in the face of a trend across the country, and close to home, to raise standards for low-income workers. The Los Angeles City Council voted last week to incrementally increase the minimum to $15 an hour, following the lead of other major municipalities including San Francisco, Seattle and Chicago.
Councilwoman Beth Krom said a repeal would send the message that “Irvine no longer believes in a progressive vision.”
Krom, who served as mayor when the ordinance was adopted, added that in her view, no part of the ordinance is causing any burden on businesses in Irvine.
“I frankly don’t want to do business with companies that don’t want to pay their employees, who work very hard,” she said. “The people who clean this building work harder than a lot of people who are paid at a much higher rate.”