Shelby County wants power to set its wage scale

By Alex Doniach
Memphis Commercial Appeal, Mar 17 2009
When it comes to setting wages for local workers, Shelby County legislators don't want Nashville lawmakers telling them what to do.

County commissioners approved a resolution Monday opposing a Republican-backed state bill that would prohibit the city and county from requiring a living or prevailing wage for government-funded projects.

The Memphis City Council is expected to take up a similar resolution.

"When we're spending our tax money to do certain types of work, and when we're talking about what workers are paid in our county, it really should be our decision," said Commissioner Steve Mulroy, a Democrat and the resolution's sponsor.

The proposed state labor law, which already has passed the Republican-controlled state Senate, would prohibit any local government in Tennessee from requiring a government-contracted private employer to pay its employees a wage other than what is already required by state and federal governments.

Federal minimum wage is $6.55, according to the U.S. Dept of Labor. Tennessee does not have a separate wage.

If the bill passes the House, it would mean neither the city nor the county could enforce their own living wage ordinances going forward.

In recent years, both the county and city set a living wage for government employees of $10 per hour plus benefits or $12 per hour without benefits. The wage applies to companies working on government-contracted projects or receiving tax incentives, including payments-in-lieu-of-taxes or PILOTs.

Republican Commissioner George Flinn said the bill -- sponsored by state Sen. Paul Stanley, R-Germantown, and Rep. Charles Michael Sargent, R-Franklin -- embodies the Republican principle that the government should stay out of business.

"We're trying to tell people what they need to do, mandate how they need to do it and a lot of these are unfunded mandates," Flinn said. "It's running business out of Shelby County."

The resolution passed 8-4 along party lines, with Democrats supporting it and Republicans not. Commissioner Mike Carpenter recused himself because his place of work has taken a position on the issue.