Mayor endorses $8.75 minimum wage

Defending himself against accusations that he lacks compassion, Louisville Mayor Greg Fischer said Wednesday that he supports an increase in the local minimum wage to no more than $8.75 an hour because he wants to protect jobs.

"To act like there is not going to be job loss is a serious mistake in my view," he said. "… Job loss is very real and it will happen" because of an increase.

Fischer called $8.75 a "good middle ground" to minimize the expected losses and vowed to veto any ordinance calling for a larger increase, including a proposed increase to $10.10 that is to go before the full Metro Council on Thursday evening. Any increase would be incremental over three years and affect all of Jefferson County.

Fischer said he has taken heat from both sides of the argument, including fellow Democrats who have criticized his veto threats. But he pointed out that his proposal — which represents a raise of $1.50 an hour — would increase minimum-wage workers' income by more than $3,100 a year, provided they work 40 hours a week.

Fischer said he does not have any numbers on the differences in expected job losses between $10.10 and $8.75 an hour but said it would be thousands.

He said four of the companies whose operators have spoken publicly about the potential for job loss are in or near western Louisville — Mesa Foods, Packaging Unlimited, Koch Filter and Custom Quality Services. Fischer said he was not going to risk losing jobs in a section of the city that already has 23 percent unemployment and where many workers walk to work because they do not have cars.

"The potential loss of 2,000 jobs impacts real people and real families," he said. "I'm not willing to gamble on the livelihood of those families."

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Fischer said those companies hire employees others will not, including those with criminal records and lower levels of education.

Fischer said he has heard from numerous local business owners who have told him they could close, move or lay off employees if the minimum wage is increased to $10.10. He said some businesses remain concerned about an increase to $8.75.

Fischer advised the Metro Council against being reckless and said he was announcing his position to let members know the level he thought was acceptable.

Council Democrats, who hold a majority of the 26 seats, disagree on whether to send Fischer a measure calling for an increase to $10.10 or to compromise.

Steve Haag, director of the council's GOP caucus, said the nine council Republicans continue to have concerns about the legality of the council increasing the wage.

"Those concerns are shared whether the amount is $8.75 or $10.10," he said.

The Republicans also are concerned about setting a precedent, he added, "opening the floodgates" for the council to change policy and vote for increases whenever it decides.

The Republicans also agree that an increase would make Jefferson County into an island of sorts, with surrounding counties having an advantage because the federal minimum wage of $7.25 an hour would still prevail.

Proponents of raising the minimum wage say an increase would help low-wage workers and boost the economy because they would be more likely to spend the added income. They deny the increase would lead to job losses.

Christine Jones, who is unemployed but recently struggled as a server making $2.13 an hour, became visibly emotional and frustrated when the prospect of lowering the level from $10.10 was mentioned by a reporter. Jones, 48, has two degrees from the University of Louisville.

"It makes me want to cry that they want to lower it," Jones said after putting her head in her hands for several seconds. "It needs to be at least $10.10. … None of us can live on minimum wage."

Clare Gervasi, who has a child and works part time for the Louisville library system for $7.96 an hour, said $8.50 to $8.75 an hour is not enough to live on.

"Even $10.10 an hour isn't a living wage, but that is enough of a bump up that we could see a meaningful difference in our lives at home," said Gervasi, who has a master's degree in Spanish and two bachelor's degrees from the University of Louisville and was previously an adjunct professor at U of L.

Kent Oyler, chief executive officer of Greater Louisville Inc., said the business community appreciates Fischer acknowledging the concerns of businesses but believes "any increase in the local minimum wage is illegal and hinders our ability to attract new business."

"It appears city officials will attempt to mitigate the damage of the proposed minimum wage increase by adopting a compromise," he said in a statement.

Oyler said the compromise does not address whether the increase is legal or the root cause of low wages.

Fischer said there is still real concern about whether the council has legal authority to raise the minimum wage in Jefferson County. He said the proposal, if approved on Thursday, would be challenged legally.

More than 35,000 jobs in Louisville pay $9 an hour or less and 2,200 jobs pay $8 an hour or less, according to Census date shared by Fischer.

Fischer reiterated that he supports a state and federal increase but does not want to put local businesses at a competitive disadvantage.

Some Democrats, including some Louisville legislators, have said it is clear Washington and Frankfort are not going to act so Louisville officials need to respond to help low-wage workers.

Reporter Sebastian Kitchen can be reached at (502) 582-4475. Follow him on Twitter at @writeonsk.