Charities applauds minimum wage hike

The New York State Legislature's recent passage of an increase in the minimum wage has left Catholic Charities directors feeling "grateful" and "thrilled" but still wanting more.

The Legislature's vote overrode Gov. George Pataki's veto of the bill.

"We've been advocating for this since 2000," said Sister Maureen Joyce, executive director of Albany diocesan Catholic Charities. "We were holding our breaths because of the veto [and] are very grateful to the Legislature. We're delighted that some emphasis is finally being put where it should be put -- on the working poor."

Added Sister Anne Tranelli of Hispanic Outreach Services: "We need to say thank you to those who have made it possible. Thank you, but it's not enough."

Who's helped?

The new law will help such groups as immigrants, Hispanics and women, who are "clustered near the bottom of the wage scale," said Martha Pofit, director of public policy for Catholic Charities.

They make up part of the nearly 200,000 people in the 14 counties of the Albany Diocese who living below the federal poverty line.

"These people want to be able to provide for their families," said Sister Maureen. "They're one paycheck away from being homeless."

More to come

Mrs. Pofit said the Charities will now advocate for raising the minimum wage to a living wage, which she estimates would be $13 to $16 dollars an hour.

Higher wages, she explained, help boost worker esteem in a nation where there are sometimes more benefits to being on welfare than joining the workforce.

"We need to ask: 'What would prompt me to go to work?'" she said. "There needs to be a sufficient wage paid to make it worth it to go to work."

'Self-worth'

Agnes Donlon, director of Catholic Charities of Columbia and Greene Counties, hopes that the increase will "contribute greatly to the sense of self-worth and self-esteem of the working poor. A number of our clients have transitioned from welfare to work and moved into low-paying positions. They have a tremendous sense of wanting to provide for themselves and their families; but, in order to do that, they need a meaningful wage."

At Catholic Charities in Schenectady, agency director John Steele called the increase a "step in the right direction" but also says it's "not enough."

"This past October, we served over 700 families that had an income of less than $15,000 a year," he said. "I can tell you that people making $7.15 an hour for 40 hours a week for 52 weeks will not be able to afford rent."

He advised pairing minimum-wage hikes with other programs, such as education, job-training and transportation efforts to provide low-income families with ways to get to work.

Still in poverty

Sister Mary Ann LoGuidice, director of Community Maternity Services in Albany, said the new wage is "not going to get [the working poor] out of the financial difficulties they're in.

"Many times, the people we serve can only get minimum-wage-paying jobs, and they frequently don't have access to child care [when] they need it."

Albert Turo, director of Catholic Charities of Fulton and Montgomery Counties, hopes that the increase will give a little extra assistance to clients living on the edge, especially those who make too much money to receive help from the Department of Social Services, and are forced to use food banks and pantries to keep their cupboards full.

As employer

While applauding the increase in the minimum wage, Catholic Charities must also consider the effect of the raise on its own budget.

As an employer, Catholic Charities makes a "concerted effort" to pay above the minimum wage, Sister Maureen said. Most agencies pay more than $8 per hour. However, some grants and government funding sources don't permit more than minimum wage. Catholic Charities agencies will have to reconcile a larger payroll with static funding sources.

Said Mr. Steele, "A lot of people who work within Catholic Charities are at the lower end [of the pay scale]. We see the struggle within our own organization. If you're an aide in a meal center, you typically start at $6.50 an hour. That's pretty low, but it's what we can afford on the contracts that pay us to operate these programs. It's a complicated situation; the challenge to not-for-profits is finding the funding sources to help us pay a higher wage."

(The raise in the minimum wage goes into effect on Jan. 1 with a jump to $6 per hour. Scheduled increases will move the rate to $6.75 on Jan. 1, 2006, and to $7.15 on Jan. 1, 2007. Catholic Charities estimates that more than 700,000 New Yorkers will be affected by the wage hike.)

(12/16/04)