As expected, Mayor Bloomberg doesn't want NYC developers who get taxpayer subsidies to have to pay workers more than minimum wage. Two City Council members from the Bronx are introducing legislation that would require developers who receive public subsidies worth more than $100,000 to pay workers at least $10 an hour, plus benefits. But Bloomberg says that's crazy, and will kill growth.
"It's a nice idea but is poorly thought out and will not work," Bloomberg told reporters yesterday. "The economics don't work if you have to pay more." As an example, Bloomberg cited the Kingsbridge Armory shopping mall project, which ended in failure after developers refused to guarantee that workers would be paid $10 an hour. Now, instead of crappy minimum wage jobs, Bloomberg says "we have nothing—and that's exactly what this bill would do." Oh noes, Bloomberg has nothing, too?!
But it could be argued that the proposed "Fair Wages for New Yorkers Act" would prevent deals like the Kingsbridge Armory from foundering in the future, because it would replace project-by-project wage haggling with a single citywide standard for developments. At a recent forum on wage levels, Councilwoman Melissa Mark-Viverito asked the golden question: "If you're going to do business in the City of New York and you receive a subsidy from the City of New York, what is the minimum expectation that we're asking of you in terms of what you're giving back?"
