Santa Cruz OKs Nation's Top Minimum Wage

S A N T A  C R U Z, Calif., Oct. 25, 2000 -- The City Council has voted unanimouslyto pass the nation’s highest minimum wage — $11 an hour, or $12without benefits.

Initially, the “living wage” ordinance would only coverfull-time workers for the city or for-profit companies with citycontracts.

Santa Cruz officials hope to eventually extend the minimum wageto temporary workers employed by the city and at social serviceagencies funded by the city.

Meet the Opposition

The ordinance, approved Tuesday night, had no formal oppositionas it was being developed over the last few months.

But the Santa Cruz Chamber Area Chamber of Commerce said Tuesdayit did not support the measure because of key questions about itsimpact.

Chamber President Ken Whiting said the council had not addressedwhether the ordinance would price unskilled workers out of somejobs or whether it would reduce the amount of public services thatcan be provided in this city.

There are about 50 other living wage ordinances nationwide. Someeconomists contend the laws are symbolic and have little effect.

Though most city workers in Santa Cruz already make more than$11 an hour, city officials say the ordinance is a good first stepin helping address the rising cost of living here.

Santa Cruz is about 75 miles south of San Francisco.