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Committee duplicates, advances MCO raise and agrees to consider nonprofit inclusion
Summary
The Budget & Finance Committee duplicated an ordinance that would raise the Minimum Compensation Ordinance for city contractors to $15.86 on July 1, 2017, and forwarded an unamended version to the full Board with a positive recommendation while continuing an amended version that would include nonprofit contractors to May 11 for further work.
Supervisor Jeff Sheehy presented an ordinance to raise the city—ontractor Minimum Compensation Ordinance (MCO) to $15.86 per hour on July 1, 2017, and $16.86 on July 1, 2018, followed by annual cost-of-living increases. The change would apply to employees of city contractors other than nonprofit corporations or public entities under the version before the committee.
Pat Mulligan of the Office of Labor Standards Enforcement reviewed the MCO—ackdrop, noting the MCO passed in 1999, its paid time-off provisions and how the San Francisco minimum wage nd the MCO had historically diverged. Mulligan warned that without legislative action the San Francisco minimum wage increases set by Proposition L would eclipse the MCO in coming years, potentially creating confusion for city vendors and different wage rules for airport leaseholders.
Speakers from labor and academic groups supported the increase while urging the committee to address coverage for nonprofit workers. Mike Casey, president of the labor council, said the raise would be a "game changer" for many airline catering members but warned that excluding nonprofit employees could unintentionally pit low-wage nonprofit workers against for-profit subcontractor employees. Ken Jacobs of UC Berkeley—-L-R-E cited research finding reduced turnover and improved service at SFO after prior wage increases.
Supervisor Sheehy moved to duplicate the file and offer two tracks: one unamended version to be sent to the full Board with a positive recommendation and a second, amended version that would add nonprofit employees to parity with for-profit contractor employees. The committee duplicated the file, voted to forward the unamended version to the Board with a positive recommendation, and continued the amended duplicate to May 11 for amendment drafting and further consideration. All procedural steps were taken "without objection." Deputy City Attorney John Givner later confirmed on the record that Supervisor Sheehy nd sponsors intended nonprofit and public-entity employees to be treated the same as for-profit contractor employees in the amendment being drafted.
The committee did not take final legislative action on the substantive wage rates today; it advanced one file to the Board and set the amended file for additional work. The next steps are ordinance amendment drafting for the nonprofit inclusion track and placement of the forwarded file on the full Board agenda as recommended.
