UNCG Economist: Big Changes In Views On Wages, Income Equality In Last 15 Years

Paychecks will soon be going up for many Greensboro city employees. The city council voted Tuesday to increase the minimum pay to $10 for part-time workers and $12 for full-timers.

The move is being hailed by labor groups as a ground-breaking step forward. But it's not the first time the city has considered such a move. In 2000, the council heard from a committee of labor leaders, business experts and city workers formed to evaluate a proposed living-wage ordinance.

WFDD's Paul Garber spoke with UNC Greensboro economist Andrew Brod who chaired that committee. Brod talked about what happened with the committee's suggestions on boosting the minimum pay.

He says in some ways their suggestions went beyond what the council approved this week, including expanding the wage requirement to contractors who dealt with the city.

Brod says if you don't include contract workers, you could be creating an incentive to outsource jobs such as janitorial work to firms who would pay a lower wage than the city.

In February 2000, the committee presented a 20-page report to the city council outlining options for how a living wage should be implemented if the city chose to increase the pay. Ultimately, the city decided against the plan.

"It was rejected rather handily," Brod says.

The minimum wage increase applies only to city employees, but Brod says it could have a ripple effect in the private sector. 

"Anyone who hires the kind of workers that the city does will have to take note," he says. "And it may be one of the reasons the city did this.