Working at a minimum

That is what minimum wage is — the bare minimum a business can pay its employees under California law.

Right now, the wage is $6.75 although recently signed legislation will boost it to $7.50 in January and $8 the following year.

The extra $1.25 will generate about $2,600 annually and was heralded by lawmakers as a way to boost the average annual salary and help struggling families make ends meet. In counties like San Mateo, however, labor and service experts don’t believe it is enough.

“Isn’t it a nice coincidence that after vetoing it twice, the governor signs the bill in an election year?” said Reyna Lehman of the San Mateo County Central Labor Council.

A majority of workers earn more than the minimum in San Mateo County, according to a 2000 federal census. The primary minimum wage workers are in the service industry, a growing field in the county but not one that seems primed to let earners live locally.

The increase is a start, especially if two people in a household are working, but doesn’t address other needs like health benefits, she said.

“It gets us a little bitter closer to a living wage but $35,000 a year still isn’t too much here,” Lehman said.

The average annual wage, before taxes, won’t even purchase two venti mochas at Starbucks (although workers at the franchise do make more than the minimum) or more than two gallons of gasoline during peak season. One round-trip ticket on Caltrain is possible within a single zone but getting a parking ticket means a commitment of nearly four hours of work.

A family of three — a mother, infant and school-aged child — needs a gross yearly income of $66,442 if total monthly expenses are estimated at $4,614, according to 2006 statistics from the Human Service Agency.

The family income needed for self-sufficiency is calculated using estimates for rent, utilities, food, transportation, personal care, housekeeping supplies, clothing, health care and childcare.

The two largest expectations are rent at $1,490 and childcare at $1,663.

There is no allotment for savings and no room for unexpected needs or emergencies that can threaten to cut into any of the necessities, such as food or shelter.

The shrinking middle class leaves 92,001 households earning less than $49,999 in 2004 and 77,331 falling between $50,000 to $99,999, according to the HSA.  The result is local households that dwarf the federal poverty level of $16,600 but fall short of the minimum needed to survive in San Mateo County.

To meet that total, a worker must earn $31.94 per hour, according to HSA.

The average worker who qualifies for HSA services earns $16.29 an hour, said HSA spokeswoman Catherine Barber.

Yet, of the top 10 job openings in San Mateo County, all but a few are not enough to support families, according to HSA and labor representatives.

Of the 10 industries, food preparation workers rank on the bottom with an annual salary of $21,070 — higher than the federal poverty level but less than one-third of the county’s self-sufficiency figure. General/operations managers top out with $122,762 followed by nurses with $79,726.  The area with the greatest growth — retail salespeople —average $27,997 annually.

Although occupations like nursing appears on paper enough to carve out a life in San Mateo County, local hospitals still face shortages due to anemic training programs and the high cost of living. Earlier this year, nurses at the San Mateo Medical Center threatened to strike as part of ongoing negotiations, including better benefits and higher salaries.

Even at private hospitals, the bottom line isn’t much more than the HSA self-sufficiency level. A day-shift nurse at Sequoia Hospital ranges, depending on experience, between $77,500 up to $105,500 with benefits, said hospital spokeswoman Joanie Cavanaugh.

While the figures look dire throughout San Mateo County, each city also grapples with varying degrees of difficulty. Not surprisingly, the unemployment rate in Hillsborough is the lowest with 1.4 percent and East Palo Alto anchors the other extreme with 8.4 percent. The average, 3.8 percent as of August still falls below the state average of 4.9 percent and United States average of 4.6 percent.

In response, the county offers programs like PeninsulaWorks, its job training and retraining resource. The agency offers job placement services, such as resume writing, but is also keeping up with trends by offering special programs. In particular, laid off workers are being retrained in biotechnology in a joint effort between Genentech and Canada College.

“We are trying more to create a higher standard of jobs for people that allow them to survive here,” said Marilee Kiser of the Workforce Investment Board.

PeninsulaWorks also reaches out to workers prior to layoff to prevent gaps in work history, said Kiser, but otherwise must wait for clients to find it.

The bleak picture raising concern when those who can’t afford the area are first-responders, like firefighters or community staples, like teachers but the majority don’t illicit much compassion, Barber said.

“I’ve heard many times people say if someone can’t afford to live here they should move,” she said. “But if that were the case, how many would actually be left?”