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This Bill Would Force Large Corporations To Pay a Fine if They Don’t Pay Workers a Living Wage

This Bill Would Force Large Corporations To Pay a Fine if They Don’t Pay Workers a Living Wage

1 Comment(s) | Posted | by Ian Pajer-Rogers |

Video courtesy of CAN TV

by Justyna Bicz

A group of Chicago-area progressive groups and unions are backing a bill that would punish large companies who don’t pay their workers a living wage.

The Responsible Business Act would charge corporations who employ more than 750 Cook County workers at less than $15 per hour fees for paying what advocates call poverty-level wages. Since it was introduced in October last year, the act has gained the support of unions and grassroots organizations fighting for economic justice.

Two actions in support of the proposed Responsible Business Act (RBA) took place in Cook County on Monday. In Chicago's Uptown neighborhood, Organizing Neighborhoods for Equality: Northside, or ONE Northside, led a teach-in at their offices and canvassed outside of corporate stores. Supporters of the RBA including IIRON and the Reclaim Campaign held an action at a Walmart store in suburban Bedford Park, just outside the city limits.

The RBA is a county-level act and is sponsored by Commissioner Robert Steele of the Cook County Board of Commissioners. It currently has three co-sponsors: Joan Patricia Murphy, Luis Arroyo, Jr. and Jerry Butler; organizers say they also have two commitments to vote “yes” from Jesus "Chuy" Garcia and Larry Suffredin. Three more commissioners need to support the act in order for it to pass through the 17-member board. Monday's actions called on 11th District Commissioner John Daley and 10th District Commissioner Bridget Gainer to back the bill.

At the canvassing event organized by ONE Northside, supporters of the RBA called for Gainer to co-sponsor the proposal. They engaged pedestrians outside of Target, Starbucks and McDonald’s—all corporations that would potentially be affected by the RBA.

"The CEOs of these big corporations continue to make massive profits while the workers, who are responsible for the functioning of the corporations, are forced to rely on public services to survive off their poverty wages,” said Eugene Lim, a member of the group's Workers' Rights Team.

Commissioner Gainer did not respond to a request for comment.

The Responsible Business Act would give corporations with over 750 employees a choice: either raise their employees' wages to a living wage—determined by Cook County Chief Financial Officer Ivan Samstein at $14.57 per hour without benefits and $11.66 per hour with benefits—or pay a $750 fee for each dollar paid below the hourly living wage per employee.

For example, a corporation where 100 workers earn $13.57 per hour (one dollar below the living wage of $14.57 per hour) would have the choice of raising their hourly wage by $1 for each worker, or paying a fee of $75,000 ($1 times 100 workers, times the $750 fine). This fee is designed to supplement the housing and childcare assistance, Medicaid costs and other services out of reach for workers earning poverty wages. The fees would be earmarked specifically for public assistance programs and distributed by the county.

Seventy-five percent of the revenue would be placed into a newly established Family Sustainability Fund, 20 percent would go to pre-existing health care spending and the remainder would be spent on administrative costs. A nine-person commission would advise the Cook County Board of Commissioners on allocation of the collected funds.

Read the full article from In These Times

Comments

We welcome your comments on the IWJ blog and encourage open discussion about important issues around worker justice and the unemployed. Disagreements are fine, but mutual respect is a must. Profanity, slander or abusive language will not be permitted. IWJ reserves the right to delete comments that violate this spirit of respect.

  1. Shawn Ferguson's avatar
    Shawn Ferguson
    | Permalink
    If the companies leadership will not do the right thing by their workers. Then it's time to stand with workers until they do. If it takes a new law to make them to do it so be it.

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