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Diaz, Other Officials: Living Wage Report Not Worth Paper It’s Printed On

NEW YORK (CBSNewYork) — The battle over a city council bill that would establish a mandated living wage of $10 plus benefits, rages on.

LISTEN: WCBS 880’s Rich Lamb reports

The legislation would require any company receiving city contracts or subsidies to pay their workers a minimum of $10 per hour with benefits or $11.50 per hour without benefits.

The federal minimum wage comparatively is $7.25 an hour.

Mayor Michel Bloomberg, who opposes the bill, released a report from an outside firm that was hired by the city that claims the higher wages would kill 6,000 to 13,000 low skill jobs.

The study, which was done by  Charles River Associates, says “The costs of complying with the wage mandates, and the impacts on future development, are highest for development projects located outside of Manhattan. Even though the value of financial assistance typically is higher for projects located outside of Manhattan, this is not sufficient to outweigh the added costs.”

But Bronx borough president Ruben Diaz says the study is biased, defective and a waste of $1 million taxpayer dollars.

LISTEN: 1010 WINS’ Stan Brooks reports

“It’s a ruse,” Diaz said. “It’s not worth the paper it’s printed on.”

Meanwhile, City Comptroller John Liu also released a statement Wednesday in response to the living wage study.

In it, he says “This million dollar report is so flawed it’s not worth the bandwidth for a download.  The EDC’s claim that a living wage kills jobs shows just how distorted the agency’s perspective has become.  The proposed living wage would be a requirement on new projects that are heavily subsidized by taxpayers and would create new jobs that pay decent wages. The claim of job losses is rhetoric at its worst.”

To read the full report, click here.

What do you think? Sound off below in our comments section…

  • pugphan

    Wow! Greed knows no bounds…ergo the Wall street assault.

  • Ronny

    The minimum wage should be raised to $10.00 but it will have a tough time passing REPUBLICANS who not only want to keep minimum wage at $7.50 and also want to eliminate welfare and unemployment benefits. And remember “a member of congress, I don’t remember his name, has claimed he can’t afford additional taxes on $400,000”. I guess he thinks a man making $30,000 can.

  • Cos

    They said it would cause unemployment to grow…? Alright then… Maybe, they should raise it and force the honchos to provide some of that increase from their multi-million dollar bonuses – including Heir Bloomberg!

  • Bigbrostyx Walls

    There seems to be some confusion about the living wage.It’s an existing and this is more reality based.Those in power need to stop manipulating the citizens of this nation.God is observing everything his creation is doing to its’ fellow man/woman.

  • Me

    minimum wage or living wage … it’s the same thing. You have to raise the minimum wage to approximately 9.50 if you expect to get anyone off of welfare. 7.25 is insane to think you can live off that. Babysittters are getting paid close to that…

    I know how much it cost me to live and i have the very basics… how do they come up with 7.25 an hour??? Groceries are outrageous and that deosn’t inlude the expensive healthy foods.

    • Bklyn mom

      Babysitters in my neighborhood in Brooklyn are getting $10 – $12 per hour! This minimum wage is set on a national level so of course it makes no sense in NY where everything is so much more expensive. I agree, if you want people to come off welfare or unemployment, the wages offered need to be more than what they are receiving now for doing nothing. I think we need to stop paying millions of dollars for “studies” and reports that make no sense.

  • Wall St. Protester

    I love irony! I love the idea of a man who’s worth $20 billion telling people that it’s a bad idea for companies who have business deals with the city, for them when they create new jobs in relation to those business deals, for those new jobs to pay a living $10/hr wage. Can the disparity between those two entities be any bigger?!

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