Testimony prepared by the Manhattan Young Democrats For the New York City Council Committee on Contracts Date:

November 22, 2011 Re: Support for Int. No. 251-A The Fair Wages for New Yorkers Act Good afternoon, my name is Ahmed Tigani and I am the Vice President of the Manhattan Young Democrats, an all-volunteer organization and the official youth arm of the Democratic Party in New York County. Our mission is to educate and activate young progressives empowering them to create the change they want to see in their neighborhood, borough, state, and country. This testimony is submitted on their behalf. First I want to thank Speaker Quinn, Chairman Mealy and all members of the committee on contracts for having this vital hearing. We are hear today to show our support for the passage of Int. No. 251-A otherwise known as the Fair Wages for New Yorkers Act or the Living Wage Bill. This Legislation, which is supported by a majority of New York City Councils members, would establish a living wage standard for retail jobs and other jobs created by companies that benefit from taxpayerfunded economic development subsidies. The Fair Wages for New Yorkers Act would ensure that public money would create livingwage jobs that benefit young and older workers alike, while improving the job quality for hard workingmen and women in our local retail sector. Our organization has a unique and significant interest in this issue. Young workers have been hardest-hit in the latest economic downturn, with nearly double the unemployment and underemployment rates of their older counterparts. With the labor market woefully grim for those entering the workforce for the first time, it is imperative we enact policies that will create more living wage entry-level jobs. The retail and service sector serves as an essential point of entry into the workforce for thousands of young New Yorkers each year. In fact, more than half of the employees in the retail sector are under the age of 36 according to a 2008 report by the Fiscal Policy Institute in collaboration with the Retail Wholesalers and Department Store Union. The report goes on to cite that one third of the entire retail workforce earns a median wage of less than 10 dollars per hour. As the cost of living continues to rise, we cannot expect any

worker young or old - to subsist on such low wages in New York City. The city has an opportunity to curtail underemployment and spark the creation of more living wage jobs in the retail and service sector. Similar living wage bills have been introduced in cities all over the country with nominal to no demonstrable adverse impact on the local economies. In fact, at a City Council hearing on the issue earlier this year, former Los Angeles city official Donald Spivack spoke highly of a similar law his city passed in 2003, saying [o]ur agency has found the living wage policy to be an effective tool for ensuring that taxpayer subsidized economic development creates quality jobs for Los Angeles communities. We have not found that it has inhibited new development or job growth in any way." When a private company uses taxpayer money to subsidize its own development, it has an obligation to contribute positively to the local community. Providing low-wage jobs in some of the city's poorest neighborhoods only serves to perpetuate the cycle of poverty. When you pay workers a living wage, you not only improve their standard of living in the short term, you create an environment of upward mobility which can benefit our city in the long term, as these workers become more skilled and are able to contribute positively to their communities. For these reasons and more members of the Manhattan Young Democrats, the Queens Young Democrats, the Brooklyn Young Democrats, the New King Democrats, the Young Democrats of Richmond County and the New York State Young Democrats Labor Caucus urge the New York City Council to act now and vote The Fair Wages for New Yorkers Act into law. Thank you.

Contact Information: Kat Kane Communication Director comm.@gomyd.com