Low wages like low prices are set by supply and demand. According to the Sept., 2003 Unemployment Statistics from the Minnesota Workforce Center Winona an St. Paul were tied for second behind Brooklyn Center for the states highest unemployment rate of 5.9 %. When and if that rate drops to 2 %(Moorhead Rate) I would almost assure you that the starting rate would climb quickly. I would also bet that at 2 % Moorhead is statistically at full employment for those who want to work. In Winona the 5.9% may be higher do to the fact that three of the city's top employers, according to the Community Profile by the Dept. of Trade and Economic Development are Winona Health, Winona State University and School District 861 which would tend not reflect the major decline in manufacturing jobs which as a class employment is the larges group of any sector of Winona's employment.
I also give the Living Wage research Steve cites with no more creditably than the method used by the Universal Living Wage Formula web site sent earlier. Yes it is Minnesota based but contains things which may be part of employers costs such as medical expenses which drive up the Living Wage Rate even though it may be provided by the employer. Nor does in give credit for employee Flexible Spending Accounts which most companies offer to enable pre tax dollars to be used to reduce the out of pocket costs for anyone who signs on. In accordance with the Minnesota State Data Center Winona County had 89.6 % of all families earning in excess of $20,000 in 1990. The 1999 Full Time Year Round Median Earnings was $31,926 for men and $23,406 for women. People need to know that some of our smaller retail store owners may not enjoy a Living Wage for themselves and stupid laws on healthcare benefits which allow the healthcare benefits for employees (S Corps, LLCs, Proprietorships or Partnerships) to be deductible business expenses are not deductible for the employer if they own more than 2% of the business produce little incentive for owners to provide anyone with a healthcare benefit. Paul Double -----Original Message----- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of Dwayne Voegeli Sent: Sunday, November 09, 2003 4:01 PM A few people have asked about the Living Wage research Steve Kranz cited a few months ago. A copy of his August 16, 2003 e-mail message is included below. The short answer is: "for a family of two adults and one child is $12.27/hour or $25,517/year. If both adults work, it would be a total of $17.37/hour (or $8.69/hour each). With two children and two adults, it would be $14.10/hour if one adult were working or $20.80/hour ($10.40 each) if both adults are working. The study cites figures for a variety of other family configurations, as well." Below his message, I also included my response to his post. I tried to offer some economic and historic references for comparison sake. I also tried to offer alernatives to the sad "race to the bottom" that most American workers find themselves forced into. About Winona's wages. Again, I will readily admit that Wal Mart is not the cause of the current problems. There were problems before Wal Mart proposed coming to Winona and there would continue to be problems even if Wal Mart did not come to Winona. Wal Mart also has hard working employees and good people. It is true that Wal Mart has not caused Winona's low wage problem. But it is also true that Wal Mart would only make the low wage problems even worst. Because of it's sheer weight and political power, it would only put more downward pressure on wages and benefits. Imagine there are 5 kids on one side of a teeter totter and 1 on the other side. The 5 kids repesent low wage paying jobs that can not support families or a middle class. The one child stuck up in the air represents a decent paying job. The balance is very unequal. Now imagine if a 500 pound gorilla came and sat on the side of the teeter totter where the 5 low wage paying jobs already were. What kind of wages does a 500 pound gorilla pay and what kind of health benefits does it offer? Dwayne Voegeli November 9, 2003 ================ >From: "Steve Kranz" <[EMAIL PROTECTED]> >August 16, 2003 > >Greetings, > >We had a discussion a while back trying to determine what a "living >wage" in Winona would be. I just thought I'd share a study that was >released this week that might help answer the question. The study was >funded by the Bremer, McKnight, Minneapolis, Phillips and Women's >foundations as well as the Minnesota State Network Fund. It is the >third update of original research begun as part of Jobs Now >Coalition's "Job Gap Study" in l995. The latest report uses wage >figures from 2002. > >"Relying on the most recent census, state and local government data, >the report figures what it costs to support different types of families >in every county and economic region in the state. The costs are based >upon monthly budget requirements necessary to achieve a "no frills" >standard of living. No money is included for debt payments or skills >training. There's no entertainment budget, no restaurant meals, no >vacation and nothing for emergencies, retirement or children's >education." > >According to the study a living wage in the Southeast Minnesota region >for a family of two adults and one child is $12.27/hour or >$25,517/year. If both adults work, it would be a total of $17.37/hour >(or $8.69/hour each). With two children and two adults, it would be >$14.10/hour if one adult were working or $20.80/hour ($10.40 each) if >both adults are working. The study cites figures for a variety of other >family configurations, as well. > >An interesting statistic from the report is that in Southeast >Minnesota, the cost of living is 17% lower than in the Metro area, but >median wages are 25% lower. > >The report can be found at: >http://www.jobsnowcoalition.org/ >
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