The battle lines are all too familiar: A worker-rights bill backed by a broad coalition of unions and progressive politicians, but opposed by major business interests. A majority of the City Council on board as sponsors, but no commitment from the Council speaker. Dueling economic impact studies conducted by the two opposing sides, with each insisting that the other's is inadequate.

After the Council's long-awaited bill to extend sick leave to all private employees in New York City crashed and burned last fall once Council Speaker Christine Quinn declared that it would be too harmful to businesses during tough economic times, many of the same players turned their sights on a proposed "living wage" bill for recipients of city development subsidies. Under a bill signed by Mayor Bloomberg in 2002, city contractors are already guaranteed pay of of $10 an hour; the new legislation would guarantee above-minimum wages—$10 an hour for workers with health benefits, $11.50 an hour for those without—to all employees of companies that receive public subsidies from the city Economic Development Corporation or Industrial Development Agency, including commercial tenants at city-funded development projects like malls.

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Neil deMause
Neil deMause
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The proposal has drawn bitter opposition from both business groups and the Bloomberg Administration, which say it would put certain stores at a competitive disadvantage. Proponents counter that providing higher wages is a fair tradeoff for city subsidies—and that other cities have pulled off the trick without discouraging development.

Roots in Armory battle

The Fair Wage for New Yorkers Act was introduced last spring by Bronx councilmembers Oliver Koppell and Annabel Palma, in the wake of the bruising fight over redevelopment of the Kingsbridge Armory, where developer The Related Companies wanted to build a mall. That project ultimately foundered when Related pulled out after the Council—at the behest of Bronx supermarket unions, community groups, and Bronx Borough President Ruben Diaz Jr., and over the opposition of Mayor Bloomberg—required that any jobs at the mall would have to pay wages well above the minimum.

Koppell legislative director Jamin Sewell says the armory battle was "the last straw" after previous attempts to negotiate community benefits with the Yankees for their new stadium, and with Related for the Gateway Center mall project. "We've gone from megaproject to megaproject trying to negotiate decent community benefits agreements," he says, but with limited success, as the council's powers are limited to land use oversight. A living wage law would not only eliminate the need for case-by-case battles, he says, but would be a fair exchange for EDC and IDA subsidies: "I think the feeling is that if you're receiving huge subsidies, then you have to give back to the community."

The Retail, Wholesale and Department Store Union played a key role in the Kingsbridge battle in support of unionized Bronx supermarkets who worried that low-wage stores at a subsidized armory mall would undercut their business. As the fight over the new living wage law has taken shape, RDWSU and other proponents of the legislation have worked to build a broad coalition of support for the new legislation, including a "faith caucus" of clergy from throughout the five boroughs.