Reaction Varies as Mayor Agendizes First Council Discussion of Raising Local Minimum Wage

Monday will mark the beginning of discussion by the Pasadena City Council around consideration of a future ordinance proposal that could increase the local minimum wage to $15 an hour by 2020.

Shortly before the City Council meets, a coalition of community organizations, religious leaders, and labor unions plans to stage its first “Mondays for Economic Justice” march from All Saints Church to the Robinson Memorial on Centennial Square where a few brief remarks will be delivered before the marchers head into City Hall.

The Council’s consideration will come after Tuesday’s vote by the Los Angeles County Board of Supervisors to incrementally raise the county minimum wage to $15 an hour by 2020, following the lead of the Los Angeles City Council in May.

In the county plan, the minimum wage will increase every July, with the first wage increase taking the minimum wage to $10.50 in 2016. In 2017 it would increase to $12.00, then to $13.25 and $14.25 in 2018.

“I am putting it on the agenda not for discussion but for the process, so we can discuss how we are going to deal with it; sort of like a predevelopment discussion. Before we get into substance, I want to get into process. I think now is the time to begin the dialogue,” Mayor Terry Tornek told the Pasadena Weekly.

Religious, community, and labor groups have banded together to form a group called Pasadenans for a Livable Wage to support a minimum wage increase in Pasadena.

“This is a moral issue and it’s an economic issue. This is a real test of what kind of city Pasadena is. There are only a few things local governments can do to improve the lives of low-income people and adopting a minimum wage is one of the most significant and effective things they can do,” said Dr. Peter Dreier, a professor of politics and urban and environmental policy at Occidental College.

Between Los Angeles County passing legislation to cover all local unincorporated areas and the City of Los Angeles legislation covering the sprawling city, almost half of the 4 million workers in L.A. already will benefit from recently increased minimum wage laws.

The Pasadena coalition is pushing for all Southern California cities to pass a uniform regulation that will not confuse constituents between the municipalities.

“I think Pasadena will not want to be left out on this journey around this issue. With the City of Los Angeles passing the ordinance and the County, our surrounding neighbors are offering employment opportunities for persons that have a higher minimum wage than we would,” Julianna Serrano, Director for Peace and Justice at All Saints Church, said. “It’s an exciting point in our journey of organizing that will be launched on Monday.”

Pasadena Chamber of Commerce President and CEO Paul Little said his organization is “very concerned about the possible impacts imposing a minimum wage requirement similar to those being instituted in Los Angeles and the County could have on our small, locally-owned businesses.”

Little pointed to Pasadena’s “unique economic environment” and said he hopes “care and time would be taken to study impacts in our city and not just rely on opinions from others.”

Pasadena restaurant owners in particular are worried about when and how the city will decide to implement any minimum wage ordinance.

Gregg Smith, owner of the Arroyo Chop House and a number of other popular eateries, is worried about what would happen if the surrounding cities of Glendale, Arcadia, and South Pasadena do not pass the same legislation and restaurants in those cities are able to keep their menu prices more competitive.

“Pasadena has the most non-profits per capita and the most restaurants per capita of any other city in the country. It’s not one size fits all. I have faith in the leaders of the city and I think it will have to be a collaborative process where business stakeholders meet with the people in City Hall and put everything on the table,” Smith said.

According to an analysis of San Diego restaurants commissioned last year by the California Restaurant Association an increase in wages to $13 per hour would result in substantial costs to restaurant owners, resulting in job losses due to restaurants closing.

Blair Salisbury, owner of El Cholo Cafe, offered to bring out his financial books to show the council, saying “numbers don’t lie” especially in a labor intensive industry like restaurants.

Robin Salzer, owner of Robin’s Woodfire BBQ, said he realizes that it is not if, but when the increase will happen. He has already reduced the hours of his restaurant and rewrote his business plan in preparation for the wage increase.

Salzer also pointed out that Mayor Tornek has already started communication with the small business community to include them in the process. Salzer said he plans to offer innovative ideas to implement a sub-minimum wage of $10 per hour that would incentivize businesses to hire youth below the age of 18.

“We can do something different. You learn from the best and then you implement what works best for you,” Salzer said, “We have two new councilmembers and a new Mayor balanced by some seasoned, committed councilmembers. They can implement these changes and do it so the community benefits, the city benefits. Let’s make lemonade out of lemons.”

Monday’s Council conversation will be about how to move forward with the process of considering a future agenda item regarding a council action to establish a local minimum wage formula. The issue likely will then be assigned to a committee of the council before it moves to the full council for a possible vote.

“The energy is there; this is a national conversation and its time for the City of Pasadena to respond,” Serrano said.

Dreier said he believes the vote will come before the Council as soon as October.