While labor rights activists support Tesla’s stated commitment to a minimum wage of $15 an hour, substantially above Austin’s $7.25, the agreement sheds no light on which workers this standard applies to. The average hourly rate for manufacturing jobs in the U.S. is $22.
“The fear is that a company like Tesla keeps its high-level creative jobs in places like the Bay Area and begins to see Austin like a low-wage, high-tech town,”
said Doug Greco, lead organizer of Central Texas Interfaith, representing a coalition of nonprofit groups in Austin.
[Photo Credit: Cyber Truck: Tesla; Map: Lasagnaforone / Getty]
Amidst Deliberation Over $14.7M in Taxpayer Dollars to Tesla, Central TX Interfaith Calls for Living Wages
[Excerpts from Community Impact & Austin Monitor]
Travis County commissioners continue to consider a plan to offer electric automaker Tesla millions of dollars in economic incentives to build a factory in eastern Travis County, but with no date yet announced for a decision on the matter. If approved, Tesla could receive nearly $14.7 million in property tax rebates across 10 years with additional rebates in the 10 years following.
At the commissioners' June 30 meeting, Travis County community members again phoned in to voice support and concern regarding the proposed incentives. Several speakers encouraged the county to leverage for greater worker wage and protection commitments.
"We are skeptical. Numerous studies have shown that local governments rarely if ever receive benefits commensurate with what incentives cost, and, despite what they say, businesses rarely if ever give incentives much weight when deciding where to locate," said [Rev.] Michael
Floyd, who spoke on behalf of Central Texas Interfaith....
Floyd...pointed out that even at the average wage cited by Tesla, a family of three would still qualify for Travis County Rental Assistance. Currently, people earning 150 to 250 percent of the federal poverty income guidelines, or $31,580 to $54,300, qualify to receive rental assistance from the county due to an expansion in eligibility requirements resulting from Covid-19.
[Photo Credit: Courtesy Tesla via Community Impact]
County Development Incentive for Tesla Sees More Support, Austin Monitor [pdf]
Says David Guarino of All Saints Episcopal Church, “Austin Interfaith recognizes Mayor Steve Adler, City Manager Spencer Cronk and the members of the City Council for hearing and acting on our concerns.”
“Austin Interfaith is especially appreciative of Council Members Greg Casar and Sabino ‘Pio’ Renteria for co-sponsoring the amendment that guaranteed living wage requirements for firms receiving incentives.” Mayor Adler and Councilmembers Flanagan, Kitchen and Pool spoke in favor living wages as a key community value for Austin. Mayor ProTem Kathie Tovo and Council Member Pool thanked community leaders for working with the council and city staff on the new policy.
Austin Interfaith, an organization of 37 local congregations, schools, nonprofits and labor organizations, worked hard to ensure that the City Council required living wages for employees of firms receiving future tax incentives.
“Tonight, the Austin City Council has set a national standard for urban economic incentive programs by recognizing that people deserve the dignity of a living wage from employers who receive economic incentives,” Guarino.
Austin Interfaith has worked years to encourage the city toward the $15 an hour living wage standard for city-subsidized companies.
Said Reverend Sandy Jones from Mount Olive Baptist Church, “Austin Interfaith also applauds City Manager Cronk for recommending a $15 an hour living wage floor for city employees and contractors as part of the city’s budget process.”
Support Your Local and Small Businesses, Austin Chronicle