LIVING WAGE AT DUKE UNIVERSITYHOW IT WAS ACHIEVED , WHAT IS HAS ACCOMPLISHED, and WHETHER CHAPEL HILL CAN LEARN FROM IT

MANAGER INTERVIEWS

How does living wage work at Duke? Living wage is only given to full- time employees Even though they cannot give a living wage to

everyone, managers try to make sure that they can give everyone at least nearly comparable benefits

Is the policy successful? Is it helping people? It allows the managers to be more selective It improves worker productivity in some cases Not all workers work harder It does allow people to afford better lives Compensate for increase in budget by raising

prices, changing menus, but offset these problems by improving service an productivity.

MANAGER INTERVIEWS

Is the policy successful? Is it helping people? Yes…

It allows the managers to be more selective It improves worker productivity in some cases It does allow people to afford better lives

No… Not all workers work harder Compensate for increase in budget by raising

prices, changing menus Maybe…

offset budget increases problems by improving service an productivity.

JEFF POTTER: DIRECTOR- REAL ESTATE

DurhamCAN “pressured” Duke to raise the bar for their contracted workers, such as Panda Express, McDonalds, vendors, Sitar, and Alpine Bagel.

Contracted FULL TIME workers had to be paid at least $10/hour and must be offered health care benefits. This does not include part time workers and also raises the question about what happens to these workers during the summer.

Not really a big difference in work ethic. Can Duke help until the burden became too heavy

to bear? Is that ethical? Duke thought it could just absorb the cost, but it’s

becoming more difficult to do, because of the financial climate.

JEFF POTTER: DIRECTOR- REAL ESTATE

No difference in work ethic. Duke is having trouble absorbing the costs of

the living wage. Only full- time workers receive the living

wage.

RAFEAL PEREZ- MCDONALD’S MANAGER

Work ethic did not improve in all cases, but he has more discretion in hiring.

It does not improve people’s overall economic situation, but it does allow them to have more comforts than they have otherwise.

Living wage is sufficient for families, but it is too high for single workers without dependents.

Living wage has caused McDonald’s to raise its prices, but they have balanced that by changing the menu.

ARMADILLO GRILL MANAGER

“We don’t have turnover… it’s very uncommon to find a job that pays you that much,”

Thinks living wage is high enough On whether living wage improves work ethic:“I think there are employees who make a

certain amount and then they learn to earn it,”

Works to balance compensation for employees who aren’t full time and don’t earn living wage, through employee partners and benefits

ORGANIZER INTERVIEWS

HOW DID THEY ACHIEVE A LIVING WAGE? Community involvement Dedicated leadership Commitment to the cause Worker involvement Non- adversarial negotiation

LAURA GRATTAN- DUKE ORGANIZER

“Academic Institutions are unique- they have private interests and a public mission.”

“Organizing the political will on campus was the biggest challenge. Even the best institutions aren’t just going to hand things out.”

“We had struggles in organizing employees, people. It is hard to make people feel like they have a voice.”

ORIN STARN- DUKE PROFESSOR

“People who work 8 hours a day deserve to make a wage that they can live on. It is very concrete and there are few who could disagree. Duke administrators themselves believed in a living wage.”

“It passed because we had successful social motivation and a few really committed people.”

EDGAR MKRTCHIAN

“We started by identifying the need, and then we had a back and forth with administrators.”

“We got Durham CAN and community leaders involved.”

“It was collaborative rather than adversarial.”

EMPLOYEE INTERVIEWS- OUR INTERPRETATIONS

Living wage is enough for an individual to live on, but is not enough for those with dependents unless there is a supplemental income.

Living wage does not really improve worker productivity.

A lot of employees are not receiving the living wage because they are not full time. However, it is pulling part- time wage rates up.

HILDA CHAVEZ- PANDA EXPRESS

Has worked for 2-3 months Came because of living wage, heard through

her friends. Is not earning living wage yet, but will.

She is currently making around $9/hour She thinks that the living wage is high

enough She said her work ethic didn’t increase,

because she is already hard-working

THE LOOP- DIMITIRI SKIBA, JVONNE SINGLETARY

Dimitri is not receiving the living wage because he is not a full time employee, but Jvonne is

They both are making enough to live on as single people with no dependents

They say the living wage has not increased applications

“It obviously helps pay bills and the rent. I wouldn’t be able to stay at my place without it,” said Dimitri (of his nearly- living wage)

“I think when you get paid more, you work harder,” said Dimitiri

Dimitri lives in Carborro, Jvonne lives in Durham Led to a $1 price increase in most Loop items

ARMADILLO GRILL

Her husband has a job, supplies supplemental income

Has one daughter who lives in Guatemala, room with a coworker and her husband

Previously worked at McDonald’s for $6 an hour

More money allow her to send money back to her daughter, buy Avon products

FELIX COLIN- MCDONALD’S EMPLOYEE

Has made the living wage for the past six months, prior to that made $8.15/ hour

Works two jobs, 70 hours a week Has three kids and a wife, makes enough

money to support them and to buy his kids gifts and toys

Used to need to work more, now he could work less than 70 hours a week if he wanted to

DUKE STUDENTS

Most the students we talked to support the living wage, but some oppose it.

Some students are uncomfortable with a large tuition increase, but most are willing to give up some privileges and to deal with some price increases.

“I think that it’s good when big universities pave the way for policies,” Kyle Ragins, Graduate Student

Sharon Lee, President of Christians on Campus, “would accept a sacrifice of other student privileges such as free printing and activities”

KYLE RAGINS, GRADUATE STUDENT

Supports a living wage, but thinks that a downside maybe Duke hiring less employees as a result

Agrees with paying higher tuition but seemed reluctant

Thoughts on Duke having a living wage: “Big Universities that have endowments, and have a lot of leeway to set liberal policies in terms of wages and benefits for their employees, set standards for the private industry at large. I think that it’s good when big universities pave the way for policies that they might not have thought of...that they think might occur in the market naturally because they don’t have the same profit incentives because they are nonprofit organizations but still have a lot of money”

SUNNY AND MICHAEL SOPHOMORES AT DUKE They both support the living wage Michael said “most of the minimum wage in

North Carolina does not cover a decent living expense”

would be willing to pay a small increase in tuition to support living wage

Michael said “I would be skeptical about how much of the increased tuition actually goes toward the living wage.”

Duke having a living wage shows progressive thinking

Supports implementing a living wage in other Universities that has to means to

SHARON LEE PRESIDENT OF CHRISTIANS ON CAMPUS

supports the idea of a living wage agrees with Duke’s established wage

($10.38) supports indexing “would accept a sacrifice of other student

privileges such as free printing and activities”

Living wage in Chapel Hill? Orange County? It might be more necessary in areas with

greater poverty levels or a greater proportion of jobs at minimum wage

AMANDA YU- FRESHMAN Supports living wage Thinks Duke is doing a good job Does not have a problem with tuition

increase

ANONYMOUS STUDENT Does not support living wage

The Living Wage “raises prices and transfers those higher prices to consumers, who in a competitive state will go elsewhere to purchase goods and services.”

“Food prices at Duke's campus have increased tremendously. The Loop costs far too much for what you get. This is not fair to students who have to pay such high prices. It forces them to go elsewhere.”

Supports indexing of wages “Tuition is very expensive and I don't want to pay more. I

would be ok if people offered to have part of their tuition go to workers, but not increasing tuition further.”

Against LWO in Chapel Hill and Orange County “The drastic change will cause terrible problems especially

for local businesses who cannot support such high wages as easily as can big box corporations.”

THE LIVING WAGE AND ORANGE COUNTY

Administrators support the idea in theory, but not everyone thinks that it is workable in the real world.

MARGARET WOOD CANNELL EXECUTIVE DIRECTOR OF THE HILLSBOROUGH/ORANGE COUNTY CHAMBER OF COMMERCE

“While I am certainly in support of a living wage, I am not in favor of a living wage ordinance. First of all, I feel that a living wage ordinance is almost impossible to enforce, if not illegal.”

The market is supposed to set prices

LEAH OSTER-KATZ SECOND YEAR,MASTERS PROGRAM AT THE SCHOOL OF SOCIAL WORK AT UNC CHAPEL HIL

“It is important that the Town of Chapel Hill set an example for all employers by adopting a Living Wage Policy.”

Raise wage floor to $15.31 per hour Adopt an indexing policy Incrementally increase the wage floor until the town is

paying all employees a wage equivalent to the current housing wage

Include part-time, contracted, and employees who work non-standard work weeks.

Fewer families dependent on tax funded social service programs. 

Without a second job, families can spend more time at home

Residents can establish credit and invest in the local economy of Chapel Hill. 

WHAT DOES UNC THINK ABOUT THE LIVING WAGE?

A lot of people did not really know what it was, and when they found out were supportive but with reservations, because they did not know if it was economically feasible.

Most people think that the idea of paying everyone a living wage is good in theory, if it can be made economically sustainable.

BO ZHANG

Knew a basic definition of the living wage He thinks he supports living wage “UNC has a higher cost of living compared to

other areas.” (If it led to a tuition hike) “I think it would be

hard, but I think that if people understood what the living wage was for it would be good.”

ALEX WONNELL

“I would say most people would support a living wage when they first hear about it, but obviously I don’t really know like directly how that would affect the rest of the economy, you know, if that is actually financially possible…it might just be financially impossible.”

Is not opposed to living wage, but would like to investigate whether it is financially practical

ANONYMOUS

Somewhat familiar with living wage “It’s a nice idea, but it’s not economically

feasible.” Said that the living wage would lead to

unemployment Said that a living wage would lead to an

increased tuition, which he does not support “If you go from I think $5.75 to $15 dollars an

hour you know, all of a sudden you’re paying almost three times as much for a single employee, so to combat that companies are going to try to cut a third, two-thirds of their employees down.”

CONCLUSIONS

Most people support the idea of a living wage, but many have reservations about its economic feasibility

Employees are able to live better on the living wage, and can work less hours. Sometimes it improves their work ethic, but not always.

Managers can be more discriminate in hiring with the living wage, but they must increase their prices to cover it.

Duke is paying for the increase in wages by charging less in rent- this could lead to tuition increases for Duke students in the long run.