A Living Wage at the Buffalo Niagara Medical
Campus: Economic Justice in the Queen City
Bradley Loliger
SUNY Buffalo Law Student
Downtown Buffalo has seen a tremendous amount of growth over the past
few years. The development of Canalside at the Inner Harbor, restoration
of the Hotel Lafayette, and the increasing number of loft apartments in the
downtown core has created a great amount of excitement for the region.
One of the most significant
developments has been the
creation of the Buffalo Niagara
Medical Campus (“BNMC”),
and its expansion is seen by
many as the cornerstone of a
revitalized City of Buffalo.
One way to distinguish the
BNMC as an innovator, and to
cultivate the new, 21st century
Buffalo, is for the members of
the BNMC to voluntarily adopt
a campus-wide living wage
standard, similar to the one that currently applies to the City of Buffalo.
This would allow all BNMC employees workers to share in the growth of
the region, and stand as an example of how a city can expand, create jobs,
promote economic justice, and reduce poverty.
The Buffalo Niagara Medical Campus – What Is It?
The BNMC is “a consortium of the region’s premier health care, life
sciences research, and medical education institutions, all located on 120
acres in downtown Buffalo, New York”1. Many of the major players in
Western New York healthcare have a physical presence at the BNMC:
The member institutions include Buffalo Hearing & Speech, Buffalo
Medical Group, Hauptman-Woodward Medical Research Institute,
Kaleida Health, Olmsted Center for Sight, Roswell Park Cancer Institute,
the University at Buffalo, The Center for Hospice and Palliative Care, the
Ross Eye Institute, and Unyts2. Each of the member institutions is an
independent company or organization, but they work together to promote
the BNMC as a whole. Growth is a major part of the BNMC: In 2003, the
campus had 7,000 employees, and by 2010, the campus filled 3.4 million
square feet and had 8,500 employees3. The BNMC continues to expand;
the Master Plan projects that the campus will fill 4.8 million square feet by
2015, and nearly 10 million square feet by 20304. Much of this growth
will come from the University at Buffalo, which plans on relocating the
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School of Medicine and Biomedical Sciences, as well as the schools of
nursing, pharmacy, and public health to the BNMC5. As the BNMC
expands, there is expected to be a growth in the popularity of Downtown
living and use of the Metro Rail6.
The Living Wage – A Form of Economic Justice
In the states and at the federal level, there are minimum wage laws that
dictate the lowest amount an employer can pay an employee. With some
exceptions, the minimum wage rate in New York State is currently $7.25
per hour7. The 2013 budget calls for this minimum wage to be raised to
$9 per hour by 20158.
Some have argued that the minimum wage is not the best method to
support workers. Many advocate for a living wage, which can be defined
as “a wage which would provide someone who works full-time year-round
with a decent standard of living as measured by the criteria of the society
in which he/she lives9.” The living wage is framed as a way of promoting
“economic justice” and a “fair economy,” so that all workers can live with
dignity10. In more applicable terms, a living wage is an amount of money
that is enough to keep a family of three or four out of poverty11.
Advocates for the living wage believe that it does not make sense that
there are people who work full time, but still live in poverty12. Further,
the costs of public benefits are high, and raising taxes to pay for welfare
benefits is unpopular. Those in favor of a living wage argue that a greater
adoption of a living wage for all businesses would address this problem.
The Living Wage in the Queen City – Current Policy
While the living wage has not taken hold at the federal or state level, many
individual municipalities
throughout the country have
living wage policies. Between
1994 and 2004, over 90 local
governments in the United States
adopted living wage ordinances13.
Buffalo’s Living Wage Ordinance
was adopted in 1999, and has was
amended in 2002 and 200714.
This Ordinance applies when the
City contracts with a business and
pays that business more than
$50,000 per year, or if the business pays the city more than $50,000 per
year (i.e. Buffalo Civic Auto Ramps leasing land from the City)15. The
ordinance also applies to employers who have more than ten employees16.
Further, if the business that the City contracts with subcontracts, the
subcontracted workers also must be paid the living wage17. With Cost of
Living Adjustments, the current living Wage Rate in the City of Buffalo is
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$12.40 per hour for workers without benefits and $11.05 for workers with
benefits18.
The Living Wage currently applies to several local businesses that contract
with the City, including All Pro Parking, Buffalo Civic Auto Ramps, The
Olmstead Parks Conservancy, Morris Protective Service, and Rural Metro
Medical Services19. After a lawsuit, the City of Buffalo itself became a
covered entity, and is required to pay its workers a living wage.20
The Living Wage Ordinance is enforced by the Living Wage Commission,
which is “a volunteer citizen commission with power to investigate, hold
hearing, and recommend sanctions.21” The Businesses report to the
commission to ensure that they are acting in accordance with the
Ordinance. The Living Wage Ordinance has been seen as a success: For
example, the Buffalo Civic Auto Ramp has seen less employee turnover
and theft, and a higher employee morale since the City adopted the
ordinance22.
Implementing a Living Wage at the BNMC – An Opportunity to
Set the Course for the Future
Buffalo’s Living Wage Ordinance has had a positive impact on workers
by raising their wages, but its effect is not widespread, as the total number
of employees the Ordinance impacts is small. One way to create greater
economic justice for all would be for the Buffalo Niagara Medical
Campus to voluntarily adopt a living wage similar to the City’s Living
Wage Ordinance.
Creating a living wage at the BNMC would
be more complex than implementing the
City code, as the campus consists of ten
separate member institutions, each with
their own interests. It would not be as
simple as the city only signing contracts
with employers who pay living wages to
their employees. However, the BNMC is
presenting itself to the nation as a leader in
medicine and healthcare. To truly set the
BNMC apart from all other hospitals and
medical centers, all member institutions
could agree to pay all of their workers at
least the City of Buffalo’s living wage rate.
The practice of medicine can be a lucrative field: The average salary of a
Medical Doctor is $166,400 per year, and the average salary of a
registered nurse is $64,690 per year23. In 2006, Kaleida Health’s profits
reached $26 million24. However, healthcare professionals are not the only
employees at the BNMC. In order to make sure the entire campus
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functions day in and day out, it is necessary that each institution hire
security guards, parking attendants, janitors, foodservice workers, laundry
workers, and numerous other “behind-the-scenes” employees. While
these employees may not contribute directly to the health of patients,
without their services, the doctors at BNMC would be unable to provide
appropriate care. Providing these workers with a living wage could help
bring them out of poverty, improve employee morale, and create a better
work product, as happened with the Buffalo Civic Auto Ramps. This
would set a standard for other medical campuses around the nation.
Further, research has shown that there
is a strong correlation between health
and income: “Poor people are less
healthy than those who are better off,
whether the benchmark is mortality, the
prevalence of acute or chronic diseases,
or mental health.25” The BNMC
purports to be creating a “distinct
environment that provides opportunities
for active and healthy living.26” If all
the member institutions are truly
committed to this goal, then they should
come together to agree that a minimum
wage is not sufficient pay for the
support staff of BNMC, and voluntarily
adopt a campus-wide living wage. It
makes good sense to pay all the
workers in such a way that will allow
them to live healthy lives.
Steps are being taken in this direction: According to Patrick J. Whalen,
Chief Operating Officer of BNMC, Inc., “low-skill” workers are being
trained via programs at Goodwill and then working at the medical campus,
being paid nearly $10 per hour for maintenance and grounds keeping
work27. This is a good start, but if BNMC truly wants to set a standard of
care for the region, and stand as a world-class health organization, all
member institutions must adopt a living wage.
The BNMC member institutions want to be the springboard to the future
for Buffalo. This cannot happen if the Campus creates high wage jobs for
college educated people, and ignores the economic needs and realities of
the support staff; maintaining the status quo will keep the poor in poverty
and fail to move the region forward in a progressive direction. Adoption
of a living wage standard for the BNMC would set the medical campus
apart from all others, provide workers with economic justice, combat
poverty, and consequently promote better health outcomes for all.
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1
Buffalo Niagara Medical Campus website Homepage – “Welcome to the Future.”
http://www.bnmc.org
2
BNMC Member Institutions. http://www.bnmc.org/bnmc-members/
3
BNMC Master Plan, p. 2 - http://www.bnmc.org/wp-content/uploads/BNMC-MasterPlan-Update-FINAL_12-3-10.pdf
4
Id.
5
UB 2020. UB’s Physical Plan – Downtown Campus.
http://www.buffalo.edu/ub2020/building_ub/building_ub/6_downtown_campus.html
6
Robert McCarthy, The Buffalo News. “Putting it all on the line.” 3/24/2013, p. A1.
7
New York State Department of Labor. Labor Standards – Minimum Wages.
http://www.labor.state.ny.us/workerprotection/laborstandards/workprot/minwage.sht
m#MIN_WAGE_LAWS
8
Edward Krudy, Reuters. “New York budge deal includes minimum wage hike, tax
breaks.” http://www.reuters.com/article/2013/03/21/us-usa-newyork-budgetidUSBRE92K0TC20130321
9
Jerold L. Waltman. The Case for the Living Wage, Algora Publishing, New York, 2004, p.
4.
10
Donald R. Stabile. The Living Wage: Lessons from the History of Economic Thought.
Edward Elgar Publishing Limited, 2008, p. 1.
11
Personal email communication with Sam Magavern, 3/28/2013.
12
Id.
13
Jerold L. Waltman. The Case for the Living Wage, Algora Publishing, New York, 2004,
p. 3.
14
City of Buffalo Living Wage Commission FAQ: http://www.citybuffalo.com/files/1_2_1/Living%20Wage%20Commission/FAQ10.pdf
15
Id.
Id.
17
Id.
18
Personal Email Communication with Sam Magavern, 3/28/2013, and Social Security
Cost of Living Adjustment http://www.ssa.gov/cola
19
Living Wage Law – Covered Employers Contact Information.
http://livingwagelaw.wikispaces.com/Covered+Employer+Contact+Information
20
Personal Interview with Sam Magavern. Conducted 3/27/2013.
21
City of Buffalo Living Wage Commission FAQ: http://www.citybuffalo.com/files/1_2_1/Living%20Wage%20Commission/FAQ10.pdf
22
Personal Interview with Sam Magavern. Conducted 3/27/2013.
23
Occupational Outlook Handbook. http://www.bls.gov/ooh/healthcare/physiciansand-surgeons.htm and http://www.bls.gov/ooh/healthcare/registered-nurses.htm
24
Franczyk, Annemarie. Buffalo Business First. Kaleida triples previous profit. April 27,
2006. Retrieved from Westlaw. 2006 WLNR 7079523.
25
University of Wisconsin-Madison Institute for Research on Poverty. Health & Poverty.
http://www.irp.wisc.edu/research/health.htm
26
Buffalo Niagara Medical Campus website Homepage – “Welcome to the Future.”
http://www.bnmc.org
27
Presentation by Patrick J. Whalen at BNMC’s Innovation Center to Sam Magavern’s
SUNY Buffalo Law Fighting Poverty in Buffalo Class. Friday, March 29, 2013.
16
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