Economist says prevailing wage no deal breaker
A Harrisburg labor economist plans to tell City Council members today that requiring businesses in publicly subsidized buildings to pay market-rate wages won't affect development projects within the city.
Legislation before City Council would require that janitors, kitchen workers and grocery store employees who work in publicly funded buildings be paid a prevailing wage -- the median of what other workers in their industry are being paid locally. The proposal would affect projects that get $100,000 or more in city subsidies and are larger than 100,000 square feet, except for grocery stores, which would have a lower threshold, of 30,000 square feet.
"To imagine employers are going to go on strike" is an unfair assessment of what a prevailing wage bill would do, said Mark Price, a labor economist with the Keystone Research Center, a research and policy development institute in Harrisburg. "No one's going to turn down money if the opportunity exists. No one's going to leave money on the table."
Price is one of nine people council President Doug Shields has invited to speak at today's 10 a.m. meeting. Council also has scheduled a public hearing at 2:30 p.m. on the bill. Dozens of labor officials and union members are expected to attend.
Opponents have said that requiring a prevailing wage would hinder development. Local developers have said it would make it difficult to attract retailers.
Yarone Zober, Ravenstahl's chief of staff and chair of the Urban Redevelopment Authority, has warned that such wage requirements could put the city at a "competitive disadvantage."
Legislation before City Council would require that janitors, kitchen workers and grocery store employees who work in publicly funded buildings be paid a prevailing wage -- the median of what other workers in their industry are being paid locally. The proposal would affect projects that get $100,000 or more in city subsidies and are larger than 100,000 square feet, except for grocery stores, which would have a lower threshold, of 30,000 square feet.
"To imagine employers are going to go on strike" is an unfair assessment of what a prevailing wage bill would do, said Mark Price, a labor economist with the Keystone Research Center, a research and policy development institute in Harrisburg. "No one's going to turn down money if the opportunity exists. No one's going to leave money on the table."
Price is one of nine people council President Doug Shields has invited to speak at today's 10 a.m. meeting. Council also has scheduled a public hearing at 2:30 p.m. on the bill. Dozens of labor officials and union members are expected to attend.
Opponents have said that requiring a prevailing wage would hinder development. Local developers have said it would make it difficult to attract retailers.
Yarone Zober, Ravenstahl's chief of staff and chair of the Urban Redevelopment Authority, has warned that such wage requirements could put the city at a "competitive disadvantage."