I am okay with this bill. What do you think?The bitter standoff between Wal-Mart and Washington, D.C. officials over the city's effort to impose a higher minimum wage on big-box retailers is fueling a wider debate about how far cities should go in trying to raise pay for low-wage workers — and whether larger companies should be required to pay more.
Wal-Mart, the nation's largest private employer, is fuming about a "living wage" bill approved by the D.C. Council that has an unusual twist — it would apply only to certain large retailers, forcing them to pay employees at least $12.50 an hour. That's nearly 50 percent higher than city's minimum wage of $8.25 an hour.
The measure is being cheered by unions and worker advocates who have long complained about Wal-Mart's wages and working conditions. Opponents call it an unfair tactic that will discourage companies from doing business in the city.
Wal-Mart has threatened, if the bill becomes law, to cancel plans for three of the six stores it hopes to build in some of the city's poorest neighborhoods that are sorely in need of economic development. The measure is now before District of Columbia Mayor Vincent Gray.
Some economists say targeting large retailers or other industries that can afford to increase wages may be an effective way to raise pay to even higher levels than a broad-based minimum wage. The district's bill applies to stores of 75,000 square feet or larger and annual corporate revenues of at least $1 billion.
"A large retailer can more easily absorb a pay hike than a corner store," said Arindrajit Dube, an economics professor at the University of Massachusetts Amherst and a prominent supporter of raising the minimum wage. Large stores are "less likely to shut down or cut back on employment" in response to such an increase, he said.
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For reference: The U.S. min wage is $7.25 a hour. 4 million Americans are paid at or below min wage. They make up 5% of the 59% of hourly wage workers in the U.S.