Rally to Raise the Minimum Wage: Gov's Proposal Falls Short

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ALBANY, NY (01/25/2023) (readMedia)-- Two weeks after Governor Kathy Hochul committed to indexing New York's minimum wage to keep up with rising prices in the future, 100+ workers, advocates, business owners, electeds, and members of Teamsters 804, 1199 SEIU, and 32BJ rallied on Wednesday at the Capitol urging the Governor to first raise the minimum wage significantly to address the record-high inflation that has eroded its value over the past four years. The Raise Up NY coalition held a worker speakout at the Capitol Dunkin Donuts followed by a rally to demand New York increase the minimum wage to at least $21.25 statewide by 2027, as proposed by the Raise the Wage Act (S1978/A2204), sponsored by Senator Jessica Ramos and Assemblymember Latoya Joyner.

WATCH here and photos attached.

New Yorkers are living through the worst cost-of-living-crisis in 40 years - and underpaid workers are bearing the brunt of the crisis. With the minimum wage frozen at $15 an hour, salaries are now worth 15% less than they were in 2019. Wages must catch up to where they would be if New York's $15 minimum wage had increased annually since 2019 to keep up with rising prices and increased worker productivity - which translates to at least $21.25 by 2027 as proposed in the Raise the Wage Act. Enacting the Raise the Wage Act will lift up 1.8 million more workers than the Governor's proposal, and put an average of $3,300 in their pockets by 2027 to help them adjust to rising costs right now and boost spending at local businesses across the state.

Governor Hochul's proposal to merely increase the minimum wage to keep up with future inflation is projected to deliver raises of only about 60 cents a year in 2024, and 40 cents a year in 2025, and 2026. That translates to an average raise of only $715 by 2026 - about one fifth the size of the raise under the Raise the Wage Act. Moreover, only about 1.1 million workers state-wide would receive raises under the Governor's plan as compared to 2.9 million New York workers under the Raise the Wage Act. The impact of the Raise the Wage Act would be similar to New York's 2016 $15 minimum wage legislation - which raised pay for 1 in 3 workers by more than $3,000 a year once fully phased in.

"I support raising the minimum wage from $15 to $21.25 - and to have it keep up with inflation after that - because the current minimum wage isn't enough to get by. Food prices have gone up and up. Rents have kept rising too - it's more expensive to get a room, studio, or apartment than ever before. It's really hard for workers like me to make ends meet right now, while big corporations have been making huge profits. It's time for workers to get our fair share and be paid a living wage," said Manuel Casanova, member of Make the Road New York in Brentwood.

Ten years ago, New York became the first state in the nation to raise the minimum wage to $15/hour, in response to the worker-of-color-led Fight for 15 campaign. This victory led to historic reductions in poverty and earnings inequality in New York, as well as job growth, not job loss. From 2013 to 2019, employment in New York City grew by over 18%, compared to 14% in cities that did not increase the minimum wage. Raising the minimum wage to $15 also helped businesses across New York keep their employees, saving them recruitment and retention costs, and boosted sales at local businesses.

But the historic gains of the Fight for $15 are being reversed as the cost of living has sky-rocketed and New York's minimum wage has remained frozen in most of the state.

Workers are now advocating for the Raise the Wage Act (S1978/A2204), legislation sponsored by State Senator Jessica Ramos and Assemblywoman Latoya Joyner to increase the minimum wage statewide to at least $21.25 by 2027 and implement automatic increases each year to keep up with future rising prices and worker productivity.

"The minimum wage should be a floor. It needs to be enough to capture the basic needs of every New Yorker. With purchasing power eroded, the legislature needs to be responsive to this affordability crisis. The Governor's support for indexing the minimum wage is a critical piece of our fight but we can't limit ourselves to half measures. Instead of codifying poverty wages, let's give hard working New Yorkers the raise they need," said Senator Jessica Ramos, Chair of the Senate Labor Committee and sponsor of the Raise the Wage Act.

"Raising wages for 2.9 million working New Yorkers, the Raise the Wage Act provides higher pay for families who are being squeezed to an unprecedented degree by rising prices. Far too many New Yorkers are struggling to make ends meet and the 'catch-up' provisions included in the Raise the Wage Act will enable working families to regain lost purchasing power while strengthening the local economy in the Bronx and communities throughout New York," said Assemblywoman Latoya Joyner (D-Bronx, 77th AD), chair of the Assembly Labor Committee.

Corporations are making record profits, and CEOs and executives now make 400 times more than workers-yet these profits are not reaching workers earning the minimum wage who haven't had a raise in four years.

Support for the Raise the Wage legislation transcends party politics. Data for Progress recently released a poll showing the wide support for both an increased minimum wage and wage indexing across the state. 80% of New York voters, including 89% of Democrats, 82% of Independents, and 65% of Republicans, support the Raise the Wage legislation to increase the minimum wage to at least $20 statewide over the next three years.

Additionally, Assembly Speaker Carl Heastie expressed support for increasing the minimum wage to reflect rising costs of living, demonstrating growing beliefs within the Legislature that we can no longer keep minimum wages stagnant.

"On its own, New York's $1.5 trillion GDP makes it the 10th largest economy in the world, bigger than Canada, Russia, and South Korea. And yet, New York also ranks as the number one state in the country for the biggest gap between the rich and the poor. A living wage for a single parent with one child is estimated to be closer to $40/hour in Ulster and Dutchess counties. We cannot remedy this inequality without creating a permanent base level income security for our most underpaid and exploited workers," said Assemblymember Sarahana Shrestha.

"New York faces the worst home care shortage in the nation because our State refuses to pay workers a fair wage. Governor Hochul must act now and end New York's dangerous home care shortage - otherwise, the shortage will only worsen in the years to come. Older adults and disabled people will continue to sleep in their wheelchairs, miss meals, and be forced into nursing homes until New York invests fully in this underpaid workforce. The State is also letting for profit insurance companies steal millions in funding intended for the home care sector - and in her upcoming budget, the Governor must ban this wasteful practice. As New York's population ages and home care workers continue to leave the sector, a significant pay increase is the only solution to stem the shortage. It's time to make New York the most age-friendly state in the nation, lift up a workforce made up of women and people of color, and invest in the home care system now," said Lolli Edinger, home care worker, Caring Majority.

"Since the last minimum wage increase in 2018, rising prices and the rising cost of living have made it impossible for working New Yorkers to live healthy, balanced lives. That's why we're fighting to raise the minimum wage and index it to rising prices, so that workers' wages always keep up with the cost of basic necessities. When we raise the minimum wage, we support families, make our communities stronger, and push up raises for everyone," said Manny Pastreich, President of 32BJ SEIU.

"Greedy corporations, from Dunkin' Donuts to UPS, are padding their profits by underpaying their employees. Our union is fighting back. In Albany and on the shop floor, we are demanding a raise for all workers. The state legislature and Governor Hochul must pass the Raise the Wage Act to hold corporations accountable and ensure that New Yorkers get their fair share," said Vincent Perrone, President, Teamsters Local 804

"I love my job as a homecare worker, but because of low wages, I have to work for two agencies, one is not enough to cover all of my expenses. We have all seen how much prices have gone up. I need more money so that I can pay my rent. We are urging New York State to raise the minimum wage now not just for home care workers, but for all workers who do critical jobs and get paid poverty wages," said Bertha Motta, a home health aide and member of 1199SEIU.

"Minimum wage workers in New York face the insurmountable task of making ends meet while the cost of living and inflation have skyrocketed but wages have remained stagnant," said Michael Prohaska, Business Manager of the Mason Tenders District Council of Greater New York and Laborers Local 79. "Laborers Local 79 and the Mason Tenders are proud to join the Raise Up New York coalition today to renew the fight for wage justice and increase the minimum wage."

"Raising the minimum wage is vital for New York businesses and communities. Minimum wage increases go right back into the economy as workers turn their needed raises into spending at local businesses," said Harper Bishop, business campaign manager, New York Business for a Fair Minimum Wage. "Raising the minimum wage also results in lower employee turnover, which saves businesses money that would go into hiring and training new employees. And businesses benefit from increased productivity and better customer service, which keeps customers coming back. We support the Raise the Wage Act."

"Churches United for Fair Housing (CUFFH) is proud to support and fight for the Raise the Wage Act. By ensuring that New York's minimum wage never falls behind again and we're also working to ensure that working class families don't fall behind again too," said Whitney Hu, Director of Civic Engagement and Research for CUFFH. "CUFFH is also particularly excited about being a part of the Raise Up coalition because of our youth members, many who are often the most stable incomes for their families, and often have most of their paycheck contributing to rent, food, and utilities. Raising their wealth will only stabilize and enrich our communities."

"Personally, the increase in salary would help me a lot since I work 8 hours a day, 5 days a week and well, I pay rent of $700 and also the bills that are coming to me of $240 plus my telephone bill and sometimes it's not even enough for the food. I have 3 children who depend on me, 2 of them are in Guatemala studying and I have to send them money for their study expenses, rent, and food," said Maira, Workers' Center of Central New York member.

"As a home attendant making only $15, I struggle with depression every day fighting to provide for my family with food prices and rents skyrocketing. We need Governor Hochul to raise up All New Yorkers by increasing the minimum wage to $21.25 so that we can continue to live in the state we love," said Victoria Rivera, Sunset Park member of New York Communities for Change.

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Raise Up NY is a coalition of workers, labor, community, and businesses-including ALIGN-NY, Business for a Fair Minimum Wage, Churches United for Fair Housing, Citizen Action NY, Community Voices Heard, Communications Workers of America District 1, Construction and General Building Laborers Local 79, Hand in Hand: The Domestic Employers Network, Indivisible Nation Brooklyn, Jews for Racial & Economic Justice, Legal Aid NYC, Legal Momentum: The Women's Legal Defense and Education Fund, Long Island Jobs with Justice, Make the Road NY, the National Employment Law Project, New School Center for NYC Affairs, New York Communities for Change, New York Communities for Change, NY Caring Majority: Fair Pay for Home Care, Partnership for the Public Good, Retail Action Project, Retail, Wholesale and Department Store Union, SEIU 32BJ, the Strong Economy for All Coalition, Tompkins County Workers' Center, UAW Region 9A, WNYCOSH, Workers' Center of Central New York, Worker Justice Center of NY, Workers United NY NJ Regional Joint Board, and 1199SEIU-that backs legislation, which would raise New York State's minimum wage and ensure there are annual minimum wage increases so that it won't fall behind ever again.