Thread: Low paying jobs cost state billions

Study: Low-paying jobs cost state billions

September 6, 2006

BY DAVE NEWBART Staff Reporter





Low-wage jobs cost the state $2.2 billion a year through public benefits paid to workers in those jobs, a new study contends.

Nearly 37 percent of all public benefits go to 475,000 working families in the state, according to the study released Tuesday by the Center for Urban Economic Development at the University of Illinois at Chicago.

The study analyzed census data and state expenditures for Medicaid, the Earned Income Tax Credit, Food Stamps, KidCare, Temporary Assistance to Needy Families and subsidized child-care programs.

The study could add fuel to the debate over Chicago's big-box ordinance, which would require stores with more than 90,000 square feet to pay workers $10 an hour and $3 an hour in benefits by 2010.

The study found that at least one worker in families receiving public assistance was employed year-round at a firm with 1,000 or more employees. What's more, two-thirds of families receiving benefits were headed by a worker earning $10 or less.

Nearly 40 percent of the public benefits go to workers in the retail, health services and arts and entertainment fields, the study found.

'Subsidies' for employers



"It's one thing for Illinois' neediest families to turn to these programs, but it's another matter when profitable corporations pass these costs on to the public sector and in turn onto taxpayers," said study author and UIC center director Nik Theodore. Theodore said the study, however, was started more than a year ago, long before the big box ordinance debate in the Chicago City Council.

Ald. Joe Moore (49th), the chief supporter of the big box measure, said the study "demonstrates why it is so important that we enact this ordinance." The law passed the City Council, but Mayor Daley has not said yet whether he will sign or veto the law before the Sept. 13 deadline.

"Some of the richest corporations in the world are accepting subsidies from taxpayers to come to our city, but they are not willing to pay their workers a wage that they can live on," Moore said.

dnewbart@suntimes.com



http://www.suntimes.com/output/news/cst-nws-poor06.html

Sure does sound like Walmart & Sam's Club doesn't it?
Its been proven that Walmart intentionally doesn't offer their employees more than a 35 hour work week so they don't have to offer benefits.
Compile that on top of the crappy wages they pay, and all the employees have to seek state medical care and assistance.

The cities may get more of a tax base from a Walmart opening up, but I'll just about bet the amoun in annual taxes a city may collect would not be enough compensation for the tax dollars spent to provide assistance to their workers. And for what? so they can make more stupid commercials with the smiley face knocking 10 cents off of some cheap foreign made product?

This is a little off the subject, but I actually went into a Walmart last week w/ a friend of mine, and no I didn't buy anything, I could barely tolerate being in the store! I felt dirty and violated afterwards.
Anyway, has anyone been in a Walmart or a Sam's Club w/ happy employees? That seems to be an oxy moron in companies such as this.

I could barely tolerate being in the store! I felt dirty and violated afterwards.

Ya.....there's a few here like that. I saw it degrade big time in Florida first and I'm seeing it happen here. It's not just Wal-mart anymore either. JC Penny looked like a trashed thrift store the last time I went in. Changing a baby in a bin of jeans and tucking the dirty diaper under the stack. Me or my mom wouldn't even THINK of doing something like that.

Its been proven that Walmart intentionally doesn't offer their employees more than a 35 hour work week so they don't have to offer benefits.

It's not just Wal-mart. That's become the status quo for most of retail and even grocery stores etc. There are VERY few places or positions that offer full time. In alot of cases the full time are salary, not hourly, and they put in over 40 hrs. for no extra money. My husband was head of a department, salaried......he averaged 5.45 an hour when all was said and done. Plus....when they say benefits now....you aren't covered. You just get the oppertunity to get insurance for cheaper than you would on your own. By yourself. If you have family the rate increases and pretty much eats up your paycheck.

Originally Posted by crazybird

Its been proven that Walmart intentionally doesn't offer their employees more than a 35 hour work week so they don't have to offer benefits.

It's not just Wal-mart. That's become the status quo for most of retail and even grocery stores etc. There are VERY few places or positions that offer full time. In alot of cases the full time are salary, not hourly, and they put in over 40 hrs. for no extra money. My husband was head of a department, salaried......he averaged 5.45 an hour when all was said and done. Plus....when they say benefits now....you aren't covered. You just get the oppertunity to get insurance for cheaper than you would on your own. By yourself. If you have family the rate increases and pretty much eats up your paycheck.

CB,
You're right, it certainly isn't just Walmart. My wife works for Kroger, and when she found out they have made donations to La Raza, etc. she was furious!!!
These greedy businesses are a large portion of this problem we face. A rough analogy would be that greedy businesses are the pushers, and illegals are the users.

My wife works for Kroger, and when she found out they have made donations to La Raza, etc. she was furious!!!

Sometimes they "highly encourage" each employee to make personal donations out of their pay. Occationally they just do it automatically unless you request in writing not to.

It's not just Wal-mart. That's become the status quo for most of retail and even grocery stores etc. There are VERY few places or positions that offer full time.

I could get an Airport job with any of the airlines operating out of the Philly airport today (and have been offered them many times) but, since about 2002, they are only hiring "part time" employees (i.e. no benefits). You can work 50 hours a week for a year but, you are still considered part-time. At this point, I would work for a good benefits package and no money! Because my husband is self employed, we are currently shelling out 1090.00 a month for health insurance (with a 700.00 deductable).

I do have an interview next week for a job with the county, so I have my fingers crossed.

Good Luck!