Redwood City balances minimum wage growth

The cap is meant to help businesses better plan and adjust for annual wage increases as the CPI goes up, especially in high-cost years, but a catch-up provision, also included in the ordinance, will help wages eventually meet the CPI. For instance, if the CPI increased by 5.7%, employers would only plan for the 5% increase and the remaining .7% would have to be made up in following years when the CPI is below the 5% cap.

Rosa Shields, community services director with the San Mateo Labor Council, spoke in favor of the changes during public comment, arguing that “many working people in San Mateo County and Redwood City are still economically recovering from the pandemic. They’re facing food and housing insecurity and they’re facing choosing which bills to pay this month.”

Agreeing with Shields, Councilmember Alicia Aguirre said employees within the city would force businesses to increase pay if the city didn’t. A recent informal survey conducted in preparation for the staff’s proposal found that assertion to be true.

Assistant City Manager Alex Khojikian said merchants were largely supportive of the changes with the main message being that they’re desperate for a workforce and open to a minimum wage increase if it will help bring in staff.

“That kind of support meant a lot,” Councilmember Diane Howard said. “It’s a good balance we can all live with.”

Though minimum wage in Redwood City is one of the highest in the county, at $16.20 an hour, Khojikian said businesses are paying employees an entry rate between $19 and $21 an hour, about $1.50 more than the 2023 minimum wage rate would be if the city kept up with the CPI.

Councilmember Jeff Gee said he would back the measure but repeated his concerns about the lack of outreach to nonprofits that have also taken a hit during the pandemic.

“Make sure we don’t forget the nonprofit community because minimum wages affect everybody,” Gee said. “While we talk about small businesses not being able to recover from the pandemic, neither has the nonprofit community recovered from the tightening of the philanthropic community.”

In other business, the council also unanimously approved an updated ordinance restricting the types of disposable foodware items that can be used and distributed by restaurants and other merchants who sell prepared food and when they can give those items to customers.

With the ordinance, the council also approved a memorandum of understanding between the city and the county that charges the county with providing educational, outreach and enforcement services on the updated ordinance.

sierra@smdailyjournal.com

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