‘Living Wage’ Backers Criticize USC

Backers of a “living wage” proposal aimed at private firms with Los Angeles city contracts or financial aid Tuesday pointed fingers at two institutions--including USC--as examples of why such an ordinance is needed.

The Living Wage Coalition of labor unions and community and religious activists is pushing for enactment of a measure, sponsored by Councilwoman Jackie Goldberg, that would require such firms to pay their service workers at least $7.50 an hour with benefits, or $9.50 with none.

USC, which receives federal job training funds through the city, turned over its campus janitorial services to a private firm this year that ordinance backers said pays the former USC employees poverty wages. But USC and a representative for the company, Servicemasters, said that is untrue; the employees were hired by the firm at their USC wages, close to $9 an hour, with benefits.

The coalition also said Choice One Foods, which got a city loan to move from Vernon to Los Angeles, pays most of its workers $6.25 an hour or less. Company officials could not be reached for comment Tuesday.

The coalition contends that taxpayers are subsidizing private employers without scrutinizing how they treat their employees. Goldberg hopes to bring her ordinance to the council within a few weeks. The mayor’s office and the city’s vast business community are battling the measure, which they say would eliminate jobs and drive up costs to taxpayers.