Kevin Brown, the New Jersey state director of 32BJ Service Employees International Union, is thrilled to see the state’s minimum wage increase to $13 for most workers this week. At a time when employers already are seemingly paying more than that, Brown said the number of workers at minimum wage may be higher than many think.
Brown also thinks this: $13 is not enough for families to live in New Jersey.
His number: $18 an hour.
“We’re very pleased that the minimum wage continues to progress on its way to $15 an hour,” he said. “Raising it to $13 is helpful. There are a lot of workers between $12 and $13 — and giving people an extra $2,080 a year is a big deal. It’s a 10% raise for people. And, anytime you get a 10% raise, you’re going to feel it. So, that’s good. But it’s still, by far, not enough for a family to live on.”
Brown points to a recent ALICE study commissioned by the United Way. (ALICE is an acronym for Asset Limited, Income Constrained, Employed.) The study said it represents a new way of defining and understanding the struggles of households that earn above the federal poverty level, but not enough to afford even a bare-bones household budget.
“The ALICE study says a family of four needs about $75,000 a year to survive in New Jersey,” he said “So, that means $18. And we’re still a long way from that.”
32BJ SEIU is the largest service worker union in the country, representing more than 13,000 workers in the state. Brown said workers in the union already are at $15 — and on the way for $18 by 2023.
But that doesn’t mean he’s letting up on the fight for all workers.
“One of the added benefits of the minimum wage rising is that a rising tide lifts all boats,” he said. “As the minimum wage goes up, people who are making $14 or $15, etc., also will get a raise. So, it’s good for all workers.”
Brown said the pressure to increase wages is incredible.
“I’ve been in this for 34 years, and I’ve never seen the wage pressure as crazy as it is for low-wage workers as it is right now,” he said.
But, still, he’s worried about the long-term future for workers.
“It is an employees’ market, but who knows how long it’ll stay that way,” he said.
That’s why he’s pushing for $18 now.
“I think absolutely it’s time to move the goalposts,” he said.
Brown spoke with ROI-NJ over the New Year’s holiday break. Here’s more of the interview:
ROI-NJ: Let’s talk about a seemingly unprecedented rise in wages in the past two years. What are you seeing?
Kevin Brown: It’s very different. It’s been easier to negotiate for significant raises in this climate than it’s been in a long time — not just 2% or 3% raises, but 6% and 7% or higher. On top of that, sometimes, in our larger workplaces, we’ll negotiate $17 or $18 an hour and employers will actually say that’s not enough and they’ll give people even more.
The various minimum wages
Most employees got an increase to $13 an hour on Jan. 1 — on the way to $15/hour by 2024. Here’s a look at the various increases:
- Tipped workers: Minimum cash wage rose by $1, to $5.13 an hour, with employers able to claim a $7.87 tip credit. If the minimum cash wage plus an employee’s tips do not equal at least the state minimum wage, then the employer must pay the employee the difference.
- Seasonal employees: Minimum wage increased to $11.90 an hour on Jan. 1, up from $11.10. They will reach $15 an hour in 2026.
- Agricultural workers: Minimum wage was increased to $11.05. They will reach $15 an hour in 2027.
- Long-term care facility direct care staff: Minimum wage was increased to $16 an hour.
ROI: Of course, the rise in wages has been met with a rise in prices. Talk about inflation and how that impacts the raises workers have been getting?
KB: Obviously, you have to be above inflation in order for the raise to mean something. Right now, if inflation is 6% a year, it means you have to get a 7% or 8% raise just to get ahead. That’s why a 10% increase means something — and it means a lot if you’re at the bottom.
ROI: Let’s move to your union, 32BJ SEIU. Which union deal is next to come up?
KB: The next big one for us that’s up is going to be the commercial contract for all the janitors across the state in 2023. It will be interesting.
ROI: Why is that?
KB: The real estate industry is in a very flexible position at the moment. They’re going to have to adjust to people working at home, at least to some extent. Density is decreasing in terms of how many desks are needed in commercial office space. So, there’s a new paradigm for office workers and the industry as a whole. We’ll see how that all shakes out over the next 24 months.
ROI: I think the same can be said for the current wage phenomenon. How do you see it shaking out?
KB: There are still so many workers out there who are at minimum wage and need to get this increase. Capitalism will continue to encourage employers to only think about the bottom line. And, although there’s many exceptions of people who want to do the right thing, the majority still tend to go to the least that they can pay. And, unfortunately, that means minimum wage.
I think a lot of employers don’t want to commit themselves to the higher wages and have things improve a year from now — on their side of the ledger — and they’ve got people making $18 or $19 an hour when they could get people for $15 or $16.
So, they’re always thinking about the long game — but so are we. We’ll see how it all prevails over the next 24 months. It’ll be very interesting.
