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Spokane, Washington  Est. May 19, 1883

Council to hear ‘big box’ plan

A local nonprofit group is seeking a law that would force a dozen “big box” retailers in Spokane to pay their employees more than the state minimum wage.

Tonight the Spokane City Council will consider a Peace and Justice Action League of Spokane proposal to require that companies operating stores at least 95,000 square feet in size pay a minimum wage that’s 135 percent higher than the state minimum, or $10.30 an hour, with benefits. Stores not offering benefits would pay 165 percent of the state minimum, or $12.58 an hour.

The group is expected to get the council’s approval to gather signatures to put Initiative 2006-1 on the ballot. The initiative could affect several thousand employees working at stores that include Wal-Mart, Target, Nordstrom and J.C. Penney.

“One of the things we really want to tell the City Council and the public is we see this as just a step toward respecting the low-wage worker,” said Rusty Nelson, of PJALS.

But some retailers say the measure is unfair because it discriminates against some businesses, while giving others a competitive advantage.

Melinda Merrill, spokeswoman for the Portland-based Fred Meyer, said grocery stores would be exempt from the initiative, which could hurt Fred Meyer’s ability to compete in an industry with a meager profit margin. “Fred Meyer pays some of the highest wages and some of the best benefits in the retail industry. I would ask that the Peace and Justice League look at something that’s equitable and doesn’t punish just a few businesses,” Merrill said. Fred Meyer operates 128 stores in four states, including two in Spokane.

The council voted June 26 to send the measure to the city attorney’s office for review.

Last week, an attorney for the Spokane Regional Chamber of Commerce sent a letter to the council raising questions about the legality of the wage plan.

Backers of the effort say raising the city’s minimum wage is a necessary step in battling poverty.

Washington’s minimum wage is the highest in the country.

Workers make $7.63 an hour with cost-of-living increases indexed annually for workers age 16 and older.

Jeff Zahir, regional labor economist for the Washington Employment Security Department, estimates that only a few hundred Spokane employees currently make minimum wage.

Most of them are part-time workers with jobs in fast food or small businesses, like dry cleaners, he said.

Wages have been rising for the past two years, Zahir said, because employment is near capacity and businesses must offer more to attract dedicated workers.

If the living wage proponents’ goal is to protect those wage gains, then now is a good time because employers are already paying more, he said.

Although a number of cities have living-wage ordinances, most apply only to companies that subcontract with municipalities.

However, Chicago has a proposed ordinance that would apply to companies that have at least $1 billion in sales annually and own stores at least 90,000 square feet in size, according to published reports there.

The hotly contested Chicago ordinance would require a minimum wage of $9.25 an hour, plus $1.50 in benefits.

If implemented, it would go into effect next summer.

Incremental raises would place the minimum wage at $10 an hour with $3 in benefits by the year 2010, according to the Chicago Tribune.

A previous effort to raise wages in Spokane grew out of former Mayor John Powers’ One Spokane – an attempt to address poverty issues in the region.

Nelson, of PJALS, said the topic resurfaced after Wal-Mart announced it wanted to build a store at 44th Avenue and Regal Street on the South Hill and also build the region’s first Sam’s Club in north Spokane.

Jennifer Holder, a spokeswoman for Wal-Mart Stores Inc., said Wal-Mart already pays its Washington employees more than the proposed $10 an hour and provides basic health care for $11 a month.

If the compensation initiative passes, Holder said it may cause retailers to choose to locate in Spokane Valley or other cities.

“It’s ridiculous. If they’re going to try to do something like this they need to make it across the board for all businesses,” Holder said.

Nelson said PJALS plans to meet with Spokane Regional Chamber of Commerce and area retailers before moving forward to gather signatures.

“What we want to do is really have a discussion whereby everyone can really look at the problem, which is poverty,” Nelson said.

Increased wages act within a complicated, interrelated economy, Zahir said, and as the standard of living rises, prices sometimes follow.

While there is no easy solution, he said, the conversation generated by the living-wage movement is a plus for the community.

“It makes us think about the role that employers and wages play in our economy. It’s worth thinking about.”