FOR IMMEDIATE RELEASE
October 21, 2013
Contact: Mike Kanarick
802.735.7962
Mayor Miro Weinberger Announces Support for Livable Wage Reform to Strengthen Enforcement and Protect City’s Economic Interests
Revised Ordinance Would Reduce Risk of Loss of Air Service and Airport Revenue
Burlington, VT – Mayor Miro Weinberger today announced his support for the City Council Ordinance Committee’s Livable Wage reforms to strengthen enforcement of the ordinance and protect the City’s economic interests. The revised ordinance would reduce the risk of loss of both air service and revenue at Burlington International Airport.
“The Ordinance Committee’s reforms represent a balanced and responsible effort to address deep flaws in the enforcement of the existing Livable Wage ordinance, while also being mindful of the City’s economic interests and budget constraints,” said Mayor Weinberger. “Tonight, the City Council has an opportunity to take action that will be a step toward transforming the Livable Wage ordinance from a hollow promise to a hard commitment for many of the workers covered by the ordinance, while also committing to the people of Burlington and the financial markets that we will not gamble with the future of the Airport.” (*See Mayor’s full statement below.)
The revised ordinance addresses enforcement issues revealed by the Mayor-ordered City Attorney review by:
- Creating a private right of action for covered employees who are not compensated properly;
- Creating the authority for an independent monitoring entity to help ensure the proper compensation of covered employees; and
- Committing the City Attorney's office to an annual report on the City's Livable Wage compliance.
Further, the revised ordinance will expand slightly the number of City employees who will benefit from the livable wage by including certain seasonal and temporary workers.
The revised ordinance also will protect the City's economic development interests and Airport finances by applying the livable wage standard to the Airport in the same manner it has been applied to all other City departments. The current ordinance treats Airport leaseholders in a unique way compared to leaseholders of other City property by requiring them to pay a Livable Wage. Restaurant vendors and other service-providers who rent space from the City at the Boathouse, on the Church Street Marketplace, and in other City-owned facilities are not subject to this requirement. The revised ordinance will apply the same requirements to leaseholders of all City-owned properties. Such an equal application of the ordinance will help the Airport continue its hard work of rebounding from significant financial challenges over the last several years.
*Mayor Miro Weinberger’s full statement in support of the Ordinance Committee’s livable wage reforms:
“After nearly a year of hard work – first by City Attorney Eileen Blackwood, then by the City Council Ordinance Committee – the Council has before it tonight an ordinance that represents a balanced and responsible effort to address deep flaws in the enforcement of the existing Livable Wage ordinance, while also being mindful of the City’s economic interests and budget constraints.
Tonight, the City Council has an opportunity to take action that will be a step toward transforming the Livable Wage ordinance from a hollow promise to a hard commitment for many of the workers covered by the ordinance, while also committing to the people of Burlington and the financial markets that we will not gamble with the future of the Airport.
The main change at the Airport is to remove an unusual provision of the Burlington ordinance that applies local wage regulations to airport leaseholders. At the first reading of this ordinance change, we heard arguments that we lack sufficient data about the problems created by the unusual Airport provision to act. I disagree and would like to take a few minutes to explain why. From my perspective, there is much concerning data that should move us to act tonight.
First, it is very clear that the current ordinance is negatively impacting the Airport’s finances. For months, the Airport has been unable to fill 15,000 square feet of leasable space within the terminal at least in part because of current ordinance requirements. We are fortunate not to have more empty space today – the current ordinance nearly cost us the Skinny Pancake lease that has dramatically improved traveler food service and Airport revenue.
Second, applying the Livable Wage Ordinance to the airlines that fly in and out of BTV would risk service losses and far greater financial impact on the Airport. We know that requiring the airlines to pay Livable Wages has little to no precedent in an Airport comparable to Burlington – and little precedent anywhere. We have no local precedent to rely on either, as until this administration, this element of the ordinance was never enforced with respect to the airlines. Further, we know from responses to our inquiries that enforcement would materially increase airline costs at BTV as the Burlington wage is not being paid to all airline workers. Finally, we know that the airline industry is extremely cost-sensitive and focused on deploying planes to the most profitable routes, and we remember that we have lost routes and seats at BTV in the recent past.
Finally, we know that we cannot afford to take any action at the Airport now that risks lost seats and lost revenues. While the last year has seen considerable progress, the Airport’s credit rating is at a historic low, we still have work to do build up sufficient cash reserves, and we are just now seeing enplanement increases after years of losing seats. We are in no position to gamble with the Airport’s finances.
To close, please keep in mind that the overall impacts of the revisions will be to dramatically strengthen the Livable Wage ordinance. By passing this ordinance tonight, we will ensure that on our watch the City will finally make good on the ambitious ideals that motivated the Livable Wage ordinance’s creation a decade ago.
Thank you again to the Ordinance Committee and to Committee Chair Councilor Chip Mason for your hard work. I urge the Council to pass the proposed ordinance change without further amendment.”
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