From the inbox:
Coalition Calls on Next Mayor to Raise Minimum Wage for Publicly Funded Projects
Today, a coalition of community and labor organizations staged a tour of of sites that received tax dollars to tell the story of how the city subsidizes the creation of poverty jobs.
“Of the City of Houston’s 35 economic development tax-incentive deals with developers between 2004 – 2014, only 7 had any job promises,” said Feldon Bonner, a member of the Texas Organizing Project at the press conference that kicked off the tour. “None of the deals included language about the quality of the promised jobs, and only one has provided reports to the City on its job creation deliverables. This is unacceptable.”
The tour started at the Westin Downtown, formerly known as the Inn at the Ballpark, for which Landry’s received $2 million dollars in tax giveaways, and despite failing to provide the 125 jobs promised, the city council voted to allow Landry’s to keep the incentives.
“These tax deals are not going to mom and pop businesses. They are not going to small, women-owned, minority owned or disadvantaged businesses,” said Pastor David Madison, a TOP leader. “Tillman Fertitta, CEO, chairman and owner of Landry’s has a net worth of $2.3 billion. Yet Landry’s is one of the region’s largest poverty job creators paying its more than 10,000 service and restaurant workers in the Houston area low wages.”
The next stop was at Ainbinder Heights, a development anchored by Walmart, and includes a McDonald’s and Taco Cabana. The city awarded Ainbinder $6 million in tax breaks for property improvements. The agreement between the city and Ainbinder spans 48 pages, yet the city failed to negotiate any specific commitments for the number and quality of jobs or any other meaningful community benefits.
“Let’s not forget that Walmart is the largest corporation in the world! And the Walton family is the richest family in America with a net worth of $149 billion dollars. Do you think they need our tax incentives?,” Florence Coleman, a TOP leader, asked the community members present. “Do they deserve our tax incentives? The average Walmart associate makes just $8.81 per hour. Nationally, taxpayers are already footing a $6.2 billion bill in public assistance including food stamps, Medicaid and subsidized housing for Walmart employees who can’t provide for their families because of the low wages Walmart pays them.”
The final stop was at the Astrodome, a project that will probably receive tax dollars. County Judge Ed Emmett has traveled around the world to put together a plan for its reconstruction that includes water park, theater & trails. But there is no plan to assure that the jobs created by this project pay well and have benefits.
“The Astrodome was built by union workers back in the early 1960s, and we’re proud to have contributed to it,” said Paul Puente of the Building Trades Union. “And our elected officials have the obligation to leverage our public dollars effectively so projects like the Astrodome redevelopment provide good jobs that pay at least $15 dollars per hour or prevailing wage, whichever is higher. Jobs that provide training and benefits. And to make sure African American and Latino families in struggling neighborhoods have access to these jobs by including local hire requirements and second chance provisions.”
The coalition staged the tour today to so that Houston’s next mayor makes higher wages a priority.
“We are here today to make sure the mistakes of the past are not repeated with publicly funded development projects like the ones we visited earlier today,” Puente added. “Our local economy cannot afford one more poverty wage job. Our communities cannot accept one more poverty-wage job.”
The following organizations participated in today’s tour: Texas Organizing Project, SEIU Texas, AFL-CIO, Fe y Justicia Worker Center and Working America. Pictures can be downloaded from here: https://drive.google.com/
folderview?id= 0Bx7Fk8Qnalp0MTdtRXBMa2hyN0U& usp=sharing
That came out the same day as this story about Houston not being the affordable city we are used to it being. High housing costs are a big factor in that, but so are low average wages. Attacking that problem can have an effect on the bottom line as well. There’s only so much a Mayor can do directly about this – we already have an executive order in place establishing a higher minimum wage for companies that do business with the city, thanks to Mayor Parker – but talking about the issue and making it a point in negotiations over real estate deals like the ones cited above are two of them. I’m glad to see this coalition call attention to it.