Ventura Latest to Take On Issue of ‘Living Wage’

In a debate that has been playing out around Southern California, an upcoming study of whether workers in Ventura should be paid a so-called “living wage” has business owners worried that increased labor costs could break them financially, while supporters of the plan say it’s crucial to helping the working poor.

The Ventura City Council is due to receive the study by mid-December and decide next year whether to mandate raises for city-contracted workers, amid concerns of employers already jittery over the uncertain economy.

Last week, the council unanimously ordered the study, which seeks to gauge the cost to the city’s $150-million budget if companies that supply city goods and services are required to provide more pay and benefits.

“It’s an important social issue, but it doesn’t take precedent over other city business,” said City Manager Donna Landeros. “I did not want to embark on a study that looked at the broader social issues. There are other groups that have done that. We are keeping to the factual information.”

The city of Ventura has joined other local governments--including Oxnard, the city and county of Los Angeles, Santa Monica and San Fernando--that have established or are considering a higher minimum wage.

Council members Donna DePaola, who supports a living wage, and Ray Di Guilio, who has expressed doubts, will head a committee to make final recommendations to their colleagues early next year.

The move comes after a sharply divided Ventura County Board of Supervisors passed a similar ordinance in May to mandate wages of at least $8 per hour for county contract workers. The labor activist behind that effort, Marcos Vargas of the Ventura County Living Wage Coalition, is heading support for the Ventura effort.

Vargas said more than 5,000 households in Ventura have a principal income of less than $7.50 per hour, and 8,600 residents collect public assistance from the county. Just to stay off the street, many workers must work more than one job, Vargas said.

Opponents of the living wage ordinance predict even more workers will end up on welfare because companies will lay people off rather than pay higher wages.

“It’s just unfair,” said John Zaruka, who owns Wedgewood Banquet Center at the Buenaventura Golf Course, which contracts with Ventura for numerous city functions. “Even in good times it’s not a good idea. It will create unemployment, because people will reduce their staffs. It’s socialistic. It’s making you pay everyone the same.”

One local economist agreed that an initial result of higher labor costs would be the laying off of marginal, lower-skilled workers.

“Some workers will be displaced,” said regional economist Mark Schniepp, adding that higher wages would ultimately be passed on to the customer.

Several pay scales and the potential effect on the budget will be discussed as city staff members begin reviewing the proposal this week, Landeros said.

Vargas and his group propose that workers whose employers contract with the city receive at least $9 an hour with health benefits, or $11.25 per hour without benefits.

Ventura spends about $41 million annually on nearly 350 contracts with private businesses, said Tom Gardner, the city’s administrative service director.

Ventura County’s ordinance, similar to others passed recently in several Southern California cities, requires those receiving county contracts to pay their employees at least $8 an hour plus health benefits, or $10 an hour without benefits. The county law applies to companies with contracts worth more than $25,000. The Ventura study will determine what contract limits would apply.