LIVING WAGE AT DUKE UNIVERSITY

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LIVING WAGE AT DUKE
UNIVERSITY
HOW IT WAS ACHIEVED , WHAT IS HAS
ACCOMPLISHED, and WHETHER CHAPEL HILL
CAN LEARN FROM IT
MANAGER INTERVIEWS

How does living wage work at Duke?
Living wage is only given to full- time employees
 Even though they cannot give a living wage to
everyone, managers try to make sure that they can
give everyone at least nearly comparable benefits
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Is the policy successful? Is it helping people?
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It allows the managers to be more selective
It improves worker productivity in some cases
Not all workers work harder
It does allow people to afford better lives
Compensate for increase in budget by raising prices,
changing menus, but offset these problems by
improving service an productivity.
MANAGER INTERVIEWS
Is the policy successful? Is it helping people?
 Yes…

It allows the managers to be more selective
 It improves worker productivity in some cases
 It does allow people to afford better lives


No…
Not all workers work harder
 Compensate for increase in budget by raising prices,
changing menus


Maybe…

offset budget increases problems by improving
service an productivity.
JEFF POTTER: DIRECTOR- REAL ESTATE
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DurhamCAN “pressured” Duke to raise the bar for
their contracted workers, such as Panda Express,
McDonalds, vendors, Sitar, and Alpine Bagel.
Contracted FULL TIME workers had to be paid at
least $10/hour and must be offered health care
benefits. This does not include part time workers and
also raises the question about what happens to these
workers during the summer.
Not really a big difference in work ethic.
Can Duke help until the burden became too heavy to
bear? Is that ethical?
Duke thought it could just absorb the cost, but it’s
becoming more difficult to do, because of the financial
climate.
JEFF POTTER: DIRECTOR- REAL ESTATE
No difference in work ethic.
 Duke is having trouble absorbing the costs of the
living wage.
 Only full- time workers receive the living wage.

RAFEAL PEREZ- MCDONALD’S
MANAGER
Work ethic did not improve in all cases, but he
has more discretion in hiring.
 It does not improve people’s overall economic
situation, but it does allow them to have more
comforts than they have otherwise.
 Living wage is sufficient for families, but it is too
high for single workers without dependents.
 Living wage has caused McDonald’s to raise its
prices, but they have balanced that by changing
the menu.

ARMADILLO GRILL MANAGER
“We don’t have turnover… it’s very uncommon to
find a job that pays you that much,”
 Thinks living wage is high enough
 On whether living wage improves work ethic:
“I think there are employees who make a certain
amount and then they learn to earn it,”
 Works to balance compensation for employees
who aren’t full time and don’t earn living wage,
through employee partners and benefits

ORGANIZER INTERVIEWS

HOW DID THEY ACHIEVE A LIVING WAGE?
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Community involvement
Dedicated leadership
Commitment to the cause
Worker involvement
Non- adversarial negotiation
LAURA GRATTAN- DUKE
ORGANIZER
“Academic Institutions are unique- they have
private interests and a public mission.”
 “Organizing the political will on campus was the
biggest challenge. Even the best institutions
aren’t just going to hand things out.”

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“We had struggles in organizing employees,
people. It is hard to make people feel like they
have a voice.”
ORIN STARN- DUKE PROFESSOR
“People who work 8 hours a day deserve to make
a wage that they can live on. It is very concrete
and there are few who could disagree. Duke
administrators themselves believed in a living
wage.”
 “It passed because we had successful social
motivation and a few really committed people.”

EDGAR MKRTCHIAN
“We started by identifying the need, and then we
had a back and forth with administrators.”
 “We got Durham CAN and community leaders
involved.”
 “It was collaborative rather than adversarial.”

EMPLOYEE INTERVIEWS- OUR
INTERPRETATIONS
Living wage is enough for an individual to live
on, but is not enough for those with dependents
unless there is a supplemental income.
 Living wage does not really improve worker
productivity.
 A lot of employees are not receiving the living
wage because they are not full time. However, it
is pulling part- time wage rates up.

HILDA CHAVEZ- PANDA EXPRESS
Has worked for 2-3 months
 Came because of living wage, heard through her
friends. Is not earning living wage yet, but will.
 She is currently making around $9/hour
 She thinks that the living wage is high enough
 She said her work ethic didn’t increase, because
she is already hard-working

THE LOOP- DIMITIRI SKIBA, JVONNE
SINGLETARY
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Dimitri is not receiving the living wage because he is
not a full time employee, but Jvonne is
They both are making enough to live on as single
people with no dependents
They say the living wage has not increased
applications
“It obviously helps pay bills and the rent. I wouldn’t
be able to stay at my place without it,” said Dimitri
(of his nearly- living wage)
“I think when you get paid more, you work harder,”
said Dimitiri
Dimitri lives in Carborro, Jvonne lives in Durham
Led to a $1 price increase in most Loop items
ARMADILLO GRILL
Her husband has a job, supplies supplemental
income
 Has one daughter who lives in Guatemala, room
with a coworker and her husband
 Previously worked at McDonald’s for $6 an hour
 More money allow her to send money back to her
daughter, buy Avon products

FELIX COLIN- MCDONALD’S EMPLOYEE
Has made the living wage for the past six
months, prior to that made $8.15/ hour
 Works two jobs, 70 hours a week
 Has three kids and a wife, makes enough money
to support them and to buy his kids gifts and toys
 Used to need to work more, now he could work
less than 70 hours a week if he wanted to

DUKE STUDENTS
Most the students we talked to support the living
wage, but some oppose it.
 Some students are uncomfortable with a large
tuition increase, but most are willing to give up
some privileges and to deal with some price
increases.
 “I think that it’s good when big universities pave
the way for policies,” Kyle Ragins, Graduate
Student
 Sharon Lee, President of Christians on Campus,
“would accept a sacrifice of other student
privileges such as free printing and activities”

KYLE RAGINS, GRADUATE STUDENT
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Supports a living wage, but thinks that a downside
maybe Duke hiring less employees as a result
Agrees with paying higher tuition but seemed
reluctant
Thoughts on Duke having a living wage: “Big
Universities that have endowments, and have a lot of
leeway to set liberal policies in terms of wages and
benefits for their employees, set standards for the
private industry at large. I think that it’s good when
big universities pave the way for policies that they
might not have thought of...that they think might
occur in the market naturally because they don’t have
the same profit incentives because they are nonprofit
organizations but still have a lot of money”
SUNNY AND MICHAEL SOPHOMORES AT
DUKE
They both support the living wage
 Michael said “most of the minimum wage in
North Carolina does not cover a decent living
expense”
 would be willing to pay a small increase in
tuition to support living wage
 Michael said “I would be skeptical about how
much of the increased tuition actually goes
toward the living wage.”
 Duke having a living wage shows progressive
thinking
 Supports implementing a living wage in other
Universities that has to means to

SHARON LEE
PRESIDENT OF CHRISTIANS ON CAMPUS
supports the idea of a living wage
 agrees with Duke’s established wage ($10.38)
 supports indexing

 “would
accept a sacrifice of other student
privileges such as free printing and activities”
 Living wage in Chapel Hill? Orange County?
 It might be more necessary in areas with
greater poverty levels or a greater proportion
of jobs at minimum wage
AMANDA YU- FRESHMAN
Supports living wage
 Thinks Duke is doing a good job
 Does not have a problem with tuition increase
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ANONYMOUS STUDENT
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Does not support living wage
 The Living Wage “raises prices and transfers those
higher prices to consumers, who in a competitive state
will go elsewhere to purchase goods and services.”
“Food prices at Duke's campus have increased
tremendously. The Loop costs far too much for what you
get. This is not fair to students who have to pay such high
prices. It forces them to go elsewhere.”
Supports indexing of wages
“Tuition is very expensive and I don't want to pay more. I
would be ok if people offered to have part of their tuition go
to workers, but not increasing tuition further.”
Against LWO in Chapel Hill and Orange County
“The drastic change will cause terrible problems especially
for local businesses who cannot support such high wages as
easily as can big box corporations.”
THE LIVING WAGE AND ORANGE COUNTY

Administrators support the idea in theory, but
not everyone thinks that it is workable in the real
world.
MARGARET WOOD CANNELL
EXECUTIVE DIRECTOR OF THE HILLSBOROUGH/ORANGE
COUNTY CHAMBER OF COMMERCE
“While I am certainly in support of a living wage,
I am not in favor of a living wage ordinance. First
of all, I feel that a living wage ordinance is
almost impossible to enforce, if not illegal.”
 The market is supposed to set prices

LEAH OSTER-KATZ
SECOND YEAR,MASTERS PROGRAM AT THE SCHOOL OF SOCIAL
WORK AT UNC CHAPEL HIL
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“It is important that the Town of Chapel Hill set an
example for all employers by adopting a Living Wage
Policy.”
Raise wage floor to $15.31 per hour
Adopt an indexing policy
Incrementally increase the wage floor until the town is
paying all employees a wage equivalent to the current
housing wage
Include part-time, contracted, and employees who work
non-standard work weeks.
Fewer families dependent on tax funded social service
programs.
Without a second job, families can spend more time at
home
Residents can establish credit and invest in the local
economy of Chapel Hill.
WHAT DOES UNC THINK ABOUT THE
LIVING WAGE?
A lot of people did not really know what it was,
and when they found out were supportive but
with reservations, because they did not know if it
was economically feasible.
 Most people think that the idea of paying
everyone a living wage is good in theory, if it can
be made economically sustainable.

BO ZHANG
Knew a basic definition of the living wage
 He thinks he supports living wage
 “UNC has a higher cost of living compared to
other areas.”
 (If it led to a tuition hike) “I think it would be
hard, but I think that if people understood what
the living wage was for it would be good.”

ALEX WONNELL
“I would say most people would support a living
wage when they first hear about it, but obviously
I don’t really know like directly how that would
affect the rest of the economy, you know, if that is
actually financially possible…it might just be
financially impossible.”
 Is not opposed to living wage, but would like to
investigate whether it is financially practical

ANONYMOUS
Somewhat familiar with living wage
 “It’s a nice idea, but it’s not economically
feasible.”
 Said that the living wage would lead to
unemployment
 Said that a living wage would lead to an
increased tuition, which he does not support
 “If you go from I think $5.75 to $15 dollars an
hour you know, all of a sudden you’re paying
almost three times as much for a single
employee, so to combat that companies are going
to try to cut a third, two-thirds of their employees
down.”

CONCLUSIONS
Most people support the idea of a living wage, but
many have reservations about its economic
feasibility
 Employees are able to live better on the living
wage, and can work less hours. Sometimes it
improves their work ethic, but not always.
 Managers can be more discriminate in hiring
with the living wage, but they must increase
their prices to cover it.
 Duke is paying for the increase in wages by
charging less in rent- this could lead to tuition
increases for Duke students in the long run.

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