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Morning News

Officials in Santa Cruz, California Consider Highest Minimum Wage in the Nation

Aired October 24, 2000 - 10:35 a.m. ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

DARYN KAGAN, CNN ANCHOR: Officials in Santa Cruz, California, may approve the highest minimum wage in the nation today. It could reach $11 to $12 an hour, depending on whether benefits are attached. And that would be more than double the federal minimum wage of $5.15 an hour.

Joining us on the phone now is Santa Cruz Councilwoman Katherine Beiers to tell us exactly how this all works.

Councilwoman, good morning, thanks for joining us.

KATHERINE BEIERS: Good morning, thanks.

KAGAN: Why do you need this in Santa Cruz?

BEIERS: Well, our area, in which Santa Cruz is in California is one of the most highly cost of living there is, whether it is rent, and cost of food. So many, many of our citizens are at poverty level or below, and this is an attempt to help them.

KAGAN: And explain to us the difference between the $11 to $12, whether or not benefits are attached.

BEIERS: Sure. Those employees who fall under the various categories in which this ordinance will cover will get $12 an hour, if there are no benefits provided, that is vacation, sick leave, health benefits. If they do receive those, then the minimum wage is $11 an hour.

KAGAN: You know, folks who have these kind of jobs have to be saying that this is a great thing for them, but for employers, for people who run small businesses, their critique has to be: You are going to put us out of business.

BEIERS: Well, now, it isn't going to affect at all the private sector, it is only go to affect the city workers, our regular city workers, and also though those companies in which the city contracts for. And any -- there are lots of city contracts out there, whether it is building or maintenance, a wide variety. And any business that we contract with over $10,000 a year will be required to meet this wage.

KAGAN: So then, how does the city go ahead and pay for that; more taxes?

BEIERS: Well, hopefully not, no, I wouldn't think so. I think this just -- we are declaring this as a very high priority for the city of Santa Cruz and its workers, who do any work for the city. So we will just have to look at where things won't get done. This is a good time to do it.

We do believe that giving a living wage will assist in a better quality of work, less turnover, less people out on sick leave, and we will just have much more productive workers.

KAGAN: So the vote is today, does it look like it is going to pass?

BEIERS: It is on our agenda for the second reading. Yes, I'm pretty sure it will. It passed unanimously on the first reading. This is will be the second one with a public hearing, and then it goes into effect in 30 days.

KAGAN: Katherine Beiers, with the Santa Cruz City Council, thank you for joining us. Appreciate your time.

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