Monday, February 10, 2014

A Reality Check For Government On Minimum Wage & Living Wage

It's easy for politicians to support an increase in the minimum wage. It also seems it may be easier to oppose it. But then again everything's relative. Depends on where you live, who your constituents are, etc. But there is a strong and needed movement for an increase in the federal minimum wage and more and more pressure on communities and employers to support a living wage that allows people to afford the basics as it were. No one can live very well on the current minimum wage. And yet there are families and children who do it every day.

As usual, the public seems to be ahead of government officials on this issue. Of course the public is also much closer to the situation - buying groceries, clothing and gas among other things. Also in knowing real people, sons and daughters in many cases, who are impacted every day by low wages and what are more and more commonly and unattractively referred to as low wage jobs.

These low wage jobs are not of low importance or low consequences. As a matter of fact, they are sometimes of great and critical consequence like caring for loved ones and vulnerable people. They are important jobs that need great and caring people.

Politicians find it easy to blame everyone but themselves. So it's not surprising that when the discussion turns to minimum wage, politicians target private sector employers. You know, the Walmarts, McDonalds and all of those retail and food service entities who are hiring people at minimum wage and keeping these folks in the class of the working poor. These are the folks who control people's hours so they aren't eligible for benefits, etc.

But there's more to this story. Many people making minimum wage or a bit more work for non-profit organizations who receive their funding from the government. Surprise, surprise! So the government and elected officials can express outrage at low wages but in the end, the government and elected officials are a big part of the problem. For these organizations to increase wages, there has to be a recognition and commitment by government that funding for these services has a direct relationship to wage expenditures and will have to be increased. An initial reaction by government is that revenues just need to be readjusted. Cut administrative waste. Reduce spending on bricks and mortar. The reality is that any good administrator, and there are many, has already acted on those areas. The real cost in most of these organizations is in their people. They want and need good people. They want and need excellent people. And yet most are funded at rates of reimbursement that allow them to pay line staff $10-$12 per hour.

The places I'm talking about are nursing homes, hospitals that support the elderly and the ill and non profit agencies that support people with intellectual, developmental and/or physical disabilities. The work is hard and the expectations (of government as well as families and agency administrators) are high. The people who can work in these settings are often stressed and over worked due to high staff vacancy rates. There are incidents of abuse and neglect that have as much to do with lack of resources as with bad people. Honestly, we should be ashamed of the cuts and reductions that continue to put extreme pressures on these systems of care and support.

So, when you hear everyone calling for and supporting an increase in the minimum wage, make sure government is held accountable for its share of the equation. Otherwise we will just continue seeing people recieve minimal supports and a revolving door of people trying to work in a critically important sector. Government will have to invest in increased reimbursement rates. They can be directly targeted at direct support professionals but these investments and increases have to be made.

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