Math and Ethics of Living Wage Debated

Elizabeth Schneider

October 15 -- As the November elections draw near, hotel and restaurant owners and proponents of the unprecedented living wage law on the ballot have reached no common ground on the highly divisive issue.

As part of a series of debates on measures slated for the November 5 ballot, City TV welcomed Rabbi Neil Comess-Daniels and Montana restaurant owner Selwyn Yosslowitz to air opposing views on measure JJ

If passed, the living wage law -- which would require businesses along the coast that gross more than $5 million annually to pay workers at least $10.50 an hour plus -- would be the nation's first municipal wage law to cover private businesses with no direct financial ties to the City.

From the get go Yosslowitz encouraged voters to "put aside thier emotions" and not support a law that would "discriminate against a business in a certain area" ultimately pitting "one business against another."

"We spend forty cents of every dollar on labor, thirty cents on food, fifteen cents on operation and 10 to 12 cents on rent and occupation," said Yosslowitz, noting that the calculations leave little room for serious wage increases. "It's simple arithmetic and it will wipe us out of business."

Comess-Daniels disagreed, emphasizing the fact that those businesses impacted by the measure are located in the "coastal" or "tourist" zone created by the City and, as a result, have "received a great deal of subsidies from tax payers."

That zone, Yosslowitz countered, was designed by special interest groups, "particularly the hotel and restaurant unions."

"Every employer wants their employees to do well," Yosslowitz said. But Santa Monica "can't make a law to destroy businesses."

The law, argued Comess-Daniels, was not designed to put "anyone out of business" and specifically includes a hardship clause that would allow businesses covered by the measure an opportunity to make their case to the city that the law would make it difficult to stay in business.

Yosslowitz predicted that businesses would try to slip under he $5 million threshold by cutting out a meal period. As a result, those businesses would trim their workforce.

"This year it's $5 million, next year it will be $4 million, then $3 million then $2 millions," he said. "You'll have to charge $15 for a hamburger to stay in business."

Not so, Comess-Daniels said. "The law will put into place a requirement for those who can afford (living wage increase), and mandate that they continue to pay that rate."

To vote yes on Measure JJ, said Comess-Daniels, is to give workers the ability to get off public assistance and live just above the poverty line. "Some businesses," he added, "already pay the living wage and I applaud them."

If the measure is passed, said Yosslowitz, there will be no more seasonal work. "As a business person there is no question that you will have to eliminate seasonal workers," he said. Only skilled workers would be hired at the new hourly rates.

"This is not about seasonal workers," countered Comess-Daniels. "This is about people not making enough to keep their families off of public support."

Overall, the matter "should be debated at the state and federal level, added Yosslowitz. "This is not for Santa Monica to decide," he said.

Yosslowitz said that his restaurant employees anywhere from 30 to 40 workers. "We created jobs… everyone is making progress," he said. "It's a mistake to assume that a $5 million restaurant has the ability to pay" the proposed living wage.