Vons Backs Raising Minimum Wage to $5.01 an Hour

Vons, the largest supermarket chain in Southern California, joined a growing list of businesses and other organizations supporting an increase in the state’s minimum wage Wednesday, calling for an “immediate and significant increase” in the $3.35-an-hour rate that has prevailed since 1981.

The Rev. John Seymour, a leader in the South Central Community Organization (SCOC), one of three community groups that have made a vigorous push on the issue during the past year, announced the support of El Monte-based Vons at a City Hall news conference. Vons’ decision followed declarations of support for an increase from the Ralphs and Boys supermarket chains and came two days before a state agency is scheduled to decide whether there will be an increase.

Los Angeles County Dist. Atty. Ira Reiner and City Councilman Zev Yaroslavsky also reaffirmed their position that the minimum wage should be raised from $3.35 an hour to $5.01 an hour.

Seymour and other activists have been pushing for an increase to $5.01, based on research by a state agency that indicates that a nearly 50% hike would be necessary to lift the state’s 600,000 minimum wage workers to the standard of living they had in 1967.

Announcement Due Friday

In San Francisco on Friday, the Industrial Welfare Commission, a small but powerful state agency, will announce whether there will be an increase. In September, the commission, by a 4-1 vote, proposed a general increase to $4 an hour, pending further hearings. In a separate 3-2 vote, the commission called for full-time students to get an increase of only 5 cents an hour, to $3.40.

And in another 3-2 vote, the commission proposed that workers whose tips amount to 15% of the minimum wage--60 cents an hour--also should have a minimum wage of $3.40 an hour.

Democratic legislators, representatives of organized labor and the community groups all have expressed vigorous opposition to the creation of such a two-tier system and it is expected that organized labor would file suit in an attempt to ban the advent of the so-called “sub-minimum wage” if the commission votes it in on Friday.

On the other hand, the California Restaurant Assn., a longtime foe of increasing the minimum wage, said it would go along with the increase to $4 an hour as long as it is accompanied by the $3.40 wage for tipped employees. Stan Kyker, executive vice president of the association, said the group adopted this position “in the context of the situation in California, with a full awareness of the political and grass-roots realities of the situation.”

He was referring both to community and political pressure for an increase. A host of organizations throughout the state have demonstrated on behalf of an increase and the Legislature earlier this year approved an increase to $4.25 an hour. Gov. George Deukmejian vetoed that bill in September, saying it was unnecessary and that it would circumvent the Industrial Welfare Commission, which can make a decision on the issue without gubernatorial approval.

The commission has two representatives from labor, two from business and one person who is designated as the representative of the general public, all of whom are Deukmejian appointees. Muriel Morse, an Altadena personnel management consultant who is the public member, said in September that she might decide to side with the two labor members and vote for an increase above $4 an hour depending on what she learned in subsequent hearings. Morse has not made any further public statements on the issue.

May Exceed U.S. Figure

California’s minimum wage must be at least as high as that set by the federal government but it can be higher. The federal minimum wage was last raised in 1981 to $3.35 an hour, as was California’s. Six states currently exceed the federal minimum.

Wednesday’s press conference was the culmination of months of work by the SCOC, the United Neighborhoods Organization (UNO) and the East Valley Organization, three inter-related advocacy groups that are part of the Industrial Areas Foundation network. “The public has spoken on the minimum wage,” said Seymour, referring to the large number of church, community, minority, labor, university, business and political organizations supporting an increase.