But isn't6 that the choice of the employee? I mean,7 if they're ill, they understand that8 they're not going to get tips that day.9
Okay.12 And as far as I know, they're not13 complaining. I haven't heard them14 complain.15
Even in17 San Francisco or here. I just want to18 make clear.19
That's21 not a group that seems to be opposing22 this bill.23 Mr. Grose, if I could just ask24 you, I guess, a similar question to25 187 3/1/11 - PUBLIC HEALTH - BILL 0804741 Mr. Wonderling. Is there a place that2 you think we can get where you could see3 yourself supporting this bill, or are you4 just saying it's a mandate and you're5 against the mandate?6
Well, I'd have to7 see the revisions to comment on that, and8 I would have to take the revisions --9 again, I'm a member organization. I have10 to put the -- I would have to put it out11 to my members to decide. I work for the12 hotels, not the other way around.13
I hear14 you. Now, for your organization -- and15 maybe, Mr. Wonderling, I could ask this16 same question -- you have employees that17 actually directly work for you, right?18 Do they get sick leave?19
They do21 get sick leave. So you're giving sick22 leave to your employees, but you're23 opposing mandatory sick leave for other24 workers, probably a lot of them lower25 188 3/1/11 - PUBLIC HEALTH - BILL 0804741 income than your workers?2
Well, therein3 lies the crux of the matter in addressing4 Councilman Goode's question. I think5 underlying this initiative is, I think, a6 discussion on principle and philosophy,7 and, that is, what is the role of the8 local government in terms of dictating9 the terms of the employer-employee10 relationship for not-for-profits that11 employ a heck of a lot of people in the12 City and for-profit entities,13 particularly the smaller entities. And14 our point is that we think those15 decisions are better left to the16 not-for-profit and the for-profit17 employers in the City and not being an18 unfunded mandate from the government.19
I'm also a small23 business. I have an association24 management company called Alta Management25 189 3/1/11 - PUBLIC HEALTH - BILL 0804741 Services. I have a single mother with a2 five-year-old child. This past winter3 obviously there was a lot of snow days4 and she had to, because of school5 cancellations, had to take care of her6 child, and I didn't even -- I didn't mark7 those days down. I let her have as much8 time as she needed. There was days that9 her son was in my office while she10 worked. There's days she worked from11 home. And I didn't need to be mandated12 to do that. I did that because I wanted13 to keep her as a valued employee and I14 wanted her to stay working for me as15 opposed to someone else. I didn't need16 the government to tell me to be a good17 human being.18
I19 understand what you're saying, and maybe20 you didn't need it. Unfortunately, some21 employees don't work for employers like22 that and they have to be -- some have to23 be told that.24 And I guess, Mr. Wonderling, I25 190 3/1/11 - PUBLIC HEALTH - BILL 0804741 guess I would say about government2 dictating policy to businesses, I think3 another role of government is to protect4 the health and welfare of people, too.5 (Applause.)6
So I7 guess I go back to what I was saying8 about trying to find that balance, the9 balance of not hurting businesses but the10 balance of helping people, and I don't11 think that necessarily has to be an12 either/or. I think we can try to find13 that middle ground, and that's what I'm14 saying.15 And, Mr. Grose, if I could16 just -- I have to ask you two more things17 real quick. First -- and I don't know if18 you exactly said this in your statement,19 but how are Philadelphia hotels generally20 doing, do you believe, in the City of21 Philadelphia?22
Well, we're holding23 the occupancy. There is a couple24 articles recently and a couple news25 191 3/1/11 - PUBLIC HEALTH - BILL 0804741 stories. We're holding our occupancy.2 Matter of fact, we're doing very well in3 our occupancy and the demand, the number4 of rooms sold. What we're not doing so5 well is profitability. There's a term6 referred to as "rev par," and our rev par7 is still at 2005 levels. That's how they8 measure profitability. And we're also --9 we look at it as from our competitive10 cities, we still have a little ways to go11 before we're profitable.12
Because13 the reason I ask that, I see the14 article -- and I guess this is one you're15 referring to -- on February 19th,16 Saturday, February 19th, the headline,17 "Philly hotels post record occupancy in18 2010."19
Okay. It22 says hotels were able to charge more for23 a room with an average daily rate of $13424 compared with the national average of $9825 192 3/1/11 - PUBLIC HEALTH - BILL 0804741 per room.2
Well, if you look3 at a Philadelphia hotel, I mean,4 obviously there's going to be, especially5 with some of the taxes and some of the6 things my hotels in Philadelphia pay,7 there's going to be -- you can't compare8 on a national level, because you're going9 to get a cheaper hotel room in Lubbock,10 Texas than you are in Philadelphia. At11 least I assume. I haven't looked at the12 rates in Lubbock.13
And then also -- I16 don't know if you saw the article17 probably about a month ago, some of our18 hotels in the suburbs, which also are my19 members, are actually advertising against20 Philadelphia hotels because of the21 excessive taxes that they pay to -- even22 as the guest, they pay 15.2 percent in23 tax to stay in a Philadelphia hotel as24 opposed to a lot lower tax in the25 193 3/1/11 - PUBLIC HEALTH - BILL 0804741 suburban properties.2
Let me3 just get into the issue I raised with4 Mr. Greenberger --5
Do they9 benefit from the Greater Philadelphia10 market media program, Meryl Levitz's11 group, the suburban hotels?12
Well, then14 they shouldn't be advertising against15 Philadelphia. They shouldn't be16 advertising against Philadelphia.17
That would be18 definitely a debate that should happen.19 I know Meryl wasn't too happy with that20 advertising.21
Getting23 back to the health issue. Mr. Grose, I24 think this particularly would go to you,25 194 3/1/11 - PUBLIC HEALTH - BILL 0804741 and I don't think there's anybody from2 the Restaurant Association, but them,3 too.4 Doesn't that also factor into5 this when you consider the health of the6 worker, and not just the worker but7 co-workers and particularly the public?8 Because obviously a lot of your people in9 hotels interact with the general public10 that come in, and we quoted that figure11 from dealing with the H1N1 pandemic12 before.13 So isn't the idea of trying to14 make sure that people don't come into15 work sick, doesn't that factor into your16 just overall management?17
Sure. Yes. And if18 you look at -- I don't have all of the19 individual company sick policies with me,20 but I think that you would find -- again,21 we're the hospitality industry. We take22 care of people. We take care of our23 employees. I think you would find that24 most, if not all, hotel general managers25 195 3/1/11 - PUBLIC HEALTH - BILL 0804741 are more in the mindset of myself and to2 be a good human being to your employees3 so you can keep your valued employees.4 You know, I know in the hotel5 industry, it's a challenge to get someone6 to have employees who are hospitality7 professionals, meaning that they could be8 having the worst day in the word, but9 when they come to work, they're smiling10 at the guest, they're making eye contact.11 That's one of the biggest challenges. So12 if a hotel has those type of folks13 working for them, they're doing14 everything they can to keep them.15
Isn't it16 possible that those people that you want17 to be friendly, if they feel lousy,18 they're not going to be as friendly?19
Absolutely. Yes,20 that is, but, you know, that's part of --21
And they22 might come in if they're not getting paid23 for sick time in order to get paid and24 not be as productive a worker? Is that a25 196 3/1/11 - PUBLIC HEALTH - BILL 0804741 possibility?2
Most of them are,3 Councilman. Yeah, most of them are4 and --5
What's that? Most8 of them are compensated for being -- for9 sick -- for paid time off.10
Well,11 then those hotels shouldn't have a12 concern about this bill, right?13
Well, some of the14 smaller hotels it is a burden for, and15 that's where our concern is. It's not16 for the biggest corporate properties.17 It's for the smaller properties, which,18 quite frankly, I think are some of the19 jewels of the City, are some of our20 boutique hotels that are out there that21 make our city different. I know when I22 travel, I prefer to stay in some of the23 nicer smaller boutique properties that we24 have in our city, and I think that's what25 197 3/1/11 - PUBLIC HEALTH - BILL 0804741 makes our inventory great.2
I3 understand, but those employees at those4 boutique hotels, they matter, too, right?5 I mean, their health matters, too, and6 they deal with the public, too.7
So, I9 mean, that's what I'm saying. I keep10 getting back to the whole balance issue.11 That's what we're trying to find. And,12 to me -- and, again, I think with these13 amendments, I think we get closer to14 where you guys are, but I just hope that15 you all keep an open mind, too.16
That you19 at least keep this open to a possibility20 and not just say, Well, it's a mandate21 and it's wrong. Well, you know, mandates22 aren't always wrong and mandates23 sometimes have a purpose. Lots of laws24 are mandates. And I get back to what I25 198 3/1/11 - PUBLIC HEALTH - BILL 0804741 said to Mr. Greenberger, I think2 historically if you look, anything that3 protected workers, a lot of businesses4 basically say, you know, it will hurt us,5 businesses will close, we'll lay off6 employees. And I think we have to get7 past that just general, for lack of a8 better term, knee-jerk reaction and get9 into specifics of how we can reach that10 middle ground that I'm talking about.11 (Applause.)12
Thank you16 very much.17 There are no other questions.18 Thank you all for coming.19 What we're going to do is take20 about a five-minute break for our21 stenographer. The next panel will be22 Dr. Robert Drago, Kathy Black, Diane23 Mohney, Liz McElroy, Sandi Vasoli and24 Kate Etherington.25 199 3/1/11 - PUBLIC HEALTH - BILL 0804741 (Short recess for2 stenographer.)3
Okay. We4 are now reconvened. I'm sorry, but we've5 been here a long day.6 Who is going to go first?7 Would you identify yourself for the8 record and proceed with your testimony.9
Good afternoon,10 members of Council, Madam Chair. 4 What I have found in my HR5 practice is that very few workers6 actually use all of the sick time7 allotted to them, and a lot of this, I8 think, has to do with the fact that they9 develop a great sense of loyalty to their10 employer and very rarely do you find11 someone who is an active malingerer, who12 is just taking time off just for the sake13 of taking time off, especially, I think,14 in this job market. A job that values15 you enough to provide you with paid sick16 time is a job worth keeping. 19 So a few points really to20 consider, and some of them have been made21 already, but that when you allow workers22 to come to work sick, I can't imagine the23 potential detriment to the business if24 that worker spreads illness to its25 201 3/1/11 - PUBLIC HEALTH - BILL 0804741 customers. 4 Allowing workers to have paid5 sick time obviously retains the good6 workers because of the commitment and the7 loyalty to that employer. And it8 increases the overall quality of the work9 product. 17 We also know -- we've heard18 today, and it is very, very true, that it19 costs any business much more to recruit,20 hire and retrain new workers as opposed21 to retaining those who have already been22 trained and those who have been proven to23 be good. And there are a variety of24 statistics, but anywhere between 2525 202 3/1/11 - PUBLIC HEALTH - BILL 0804741 percent and 200 percent. 8 It's been mentioned a couple of times9 today, but the trend for larger-scale10 businesses today is to not really call it11 sick time but to offer workers accrued12 and earned paid time off, and within that13 heading, workers can decide what they14 need to use that for. So it might be a15 household emergency. It might be a sick16 child or a sick parent. It might be for17 bereavement. 19 This, we've seen, increases loyalty20 dramatically and also the quality of21 work, because workers are allowed to22 manage their own lives within a framework23 of a benefit that they get at work. And24 another great advantage to that is that25 203 3/1/11 - PUBLIC HEALTH - BILL 0804741 managers and employees don't have to go2 through that game of, I have a fever, I3 have a sore throat, I think I might have4 the flu. I mean, especially in terms of5 healthcare privacy issues today. That's6 something that -- that's a conversation7 that really should not go on between a8 worker and an employee. So they don't9 feel the need to have to call in and make10 up an excuse or a reason if in fact11 they're out for a snow day or for a child12 who is sick. They have a certain number13 of days to use and they use them14 according to their discretion, and when15 they're finished, they're finished. 18 Just as a final note, I would19 like to make a comment about the20 statement made at the last panel when the21 gentleman said that the -- with the22 number of snow days we've had this past23 year, he allowed a single mother with a24 young child to either be off or come in25 204 3/1/11 - PUBLIC HEALTH - BILL 0804741 and bring her child in, which it's really2 noble, but from a human resources3 perspective, that immediately creates4 inequality with other workers who might5 have equally good reasons, not maybe6 being a single mother with a child. So7 by trying to do something good, you8 inadvertently create a sense of9 inequality. If there's a policy that10 encompasses a variety of reasons, then11 the employer doesn't have to worry about12 that. 15
Thank you.16 I think he was speaking as sort of like a17 one-person shop and it's sort of a18 different relationship than having more19 than one or two employees. You can20 establish those kinds of relationships.21
I think23 that's what he was speaking of.24 Thank you very much for your25 205 3/1/11 - PUBLIC HEALTH - BILL 0804741 testimony.2 Next. Who is going to be next?3
Good afternoon4 and thank you. My name is Barbara5 Russella and I'm also in the hospitality6 industry. I work at the Philadelphia7 International Airport in the U.S. Airways8 Envoy Lounge for people that are flying9 out to Europe.10 I used to have paid sick days11 and I used to have everything. Now, this12 year -- I've been there for eight years,13 and for seven and a half years, I never14 used my sick days. I never got sick.15 This year as of March 1st of 2009, we16 lost our sick days. We lost our personal17 days. We lost everything, because the18 new company took over. This new company,19 they bid to run the airline lounges. So20 this new company, we're doing the same21 job we did with the other two employers,22 but we lost all of our sick days. Now,23 this year, I got sick.24 My days off are Tuesday,25 206 3/1/11 - PUBLIC HEALTH - BILL 0804741 Wednesday. I go to work on Monday. I'm2 sick. So I figure that's all right, I'll3 make it through the day because I'm off4 the next day. Well, the next day I was5 sick and the next day I was sick. I6 called out of work Thursday and Friday7 because I was sick and I didn't get paid.8 I'm a bartender. I work on9 tips. So I not only lost my tips, I lost10 my salary and I don't get it. And where11 I work, I'm dealing with people that come12 in from Europe. On the airplanes,13 they're dirty anyway. The air is crappy.14 You got to get on the airplane and --15 really, you do, because the air is so16 bad. So now I go to work and I'm seeing17 people come from all over in where I'm18 at. They're coughing. They're on the19 airplane for nine hours. They come in20 there, they're coughing, they're21 sneezing. They're around me. I'm22 getting sick, you know. I'm wiping my23 area. I wipe everything when I go to24 work, even when I'm off, so I don't have25 207 3/1/11 - PUBLIC HEALTH - BILL 0804741 to carry germs.2 But the bottom line, I'm3 talking about this other guy -- we do4 need paid sick days, and I would hope and5 encourage you to try to enact it.6 As far as the hospitality7 industry and a small business, if you8 work in a hotel, you have -- they say how9 many people are coming, occupancy level.10 They staff according to occupancy level.11 So now during the slow times, they staff12 accordingly. So everybody has days --13 they have people that are on call. So14 it's not going to hurt the manager, that15 he doesn't have to hire another person.16 They schedule people for on-call days to17 clean rooms, to work in the kitchen, to18 wait on the people. So that's nonsense19 that they have to spend money to train20 another person. That's not how it's done21 in the hospitality industry.22 But I would like to say that I23 do believe that everybody think they24 should have a fair thing and hear25 208 3/1/11 - PUBLIC HEALTH - BILL 0804741 everybody's side, but this is the right2 thing to do for the worker, because if a3 worker goes to work and they're feeling4 good, they're going to treat the guests5 good and it's a win-win situation for6 everybody. There's no reason why we7 shouldn't have it. I mean, this is8 America. We're supposed to be the9 richest country in the world. We should10 have something like this.11 Thank you.12
Thank you13 very much for your testimony. We14 appreciate it.15 (Applause.)16
Thank you very18 much. My name is Robert Drago. I'm the19 Research Director at the Institute for20 Women's Policy Research. Prior to that,21 I was a Senior Economist with the Joint22 Economic Committee of Congress, and23 before that, I served as a professor at24 Penn State for a decade. 6 Most of the numbers that are in7 this report you've already heard today,8 but this is the report, in case you're9 wondering, about San Francisco. 14 So let me go back and give you15 just a little context for this, a little16 history. 4 However, that notion of paid5 sick days legislation caught fire with6 the public imagination. It caught fire7 among employees, and employers didn't8 seem too opposed. So we've been able to9 get bills through in San Francisco,10 Milwaukee, DC. I hope Philadelphia is11 the fourth. 15 So the first point I want to16 address, which has come up kind of17 implicitly, the notion that San Francisco18 is somehow different. So if I tell you19 what happened in San Francisco, which is20 employers became very supportive. 25 211 3/1/11 - PUBLIC HEALTH - BILL 0804741 That's a random sample that we did of2 employers in San Francisco. We also3 surveyed employees. 5 But we're told that San6 Francisco is somehow different. Well,7 before that, when we started talking8 about paid sick days, we were told that9 Scandinavia where they have paid sick10 days is different. Well, Scandinavia is11 doing just fine in the recession, and to12 have someone testify before you that13 unemployment is higher in Philadelphia14 than in San Francisco and San Francisco15 has paid sick days and somehow we're16 supposed to believe that there's a causal17 relationship, well, if there's a causal18 relationship, it says you get paid sick19 days, your unemployment rate will go20 down. 21 Now, I don't honestly believe that. 25 212 3/1/11 - PUBLIC HEALTH - BILL 0804741 There isn't anything2 particularly different about San3 Francisco. One of the main findings was4 the median worker used three paid sick5 days a year. Guess what? A national6 survey done by the Bureau of Labor7 Statistics asked workers who have paid8 sick days nationwide how many days do you9 use. Guess what? Three days. It's the10 same. There's nothing different about11 San Fran or Philly. If you introduce it12 here, I can almost promise you, given13 that number is so near constant, that the14 median will be about three days. That's15 what people will use. 17 People think of paid sick days18 like car insurance. They don't want to19 use it. They can't bank it under these20 systems. They can't accrue more than the21 maximum of nine days with large22 employers. 9 We know from past studies that10 poor, single mothers, particularly women11 of color, are very likely to lose their12 job the first time they miss for any13 reason, and it's mainly they miss for14 kids. 18 That's what we're talking about. Well,19 without this ordinance, people lose their20 jobs. Those women lose their jobs, and21 those children are thrown into financial22 destitution as a result. 25 214 3/1/11 - PUBLIC HEALTH - BILL 0804741 Now, that's kind of it. It2 sounds like an outrageous claim. We're3 all better off? Really? Did the firm4 make a mistake firing people? 7 Yes, I think so. 8 Now, I'm very sympathetic,9 empathetic to small business. It's10 really, really hard to meet payroll every11 week. We have to do that at the12 Institute. 15 I get that part. But to say that there's16 something infallible about small17 businesses when they make decisions, I18 don't think so. Small businesses make as19 many mistakes as big businesses, and the20 small business is just as likely to let21 somebody go mistakenly who if they had a22 little bit more long-run vision they23 would have kept, and they lose a24 productive person, they lose the25 215 3/1/11 - PUBLIC HEALTH - BILL 0804741 training, they have to go hire somebody2 else, and that person who they let go,3 they're less productive on their next4 job.
This is why we passed the Family5 Medical Leave Act. Women were getting6 fired when they got pregnant. 8 And guess what? When they had to take a9 new job, they got paid less. 10 They're less productive on the new job11 than they were in the old job. If we12 could just keep them in the same jobs,13 they end up making more money, because14 they're more productive at their existing15 job, and that's exactly what this bill16 will do. 18 Finally, I'll just -- two more19 points. When I hear the argument that20 now is the wrong time, I'm always a21 little leery of that. Those of you who22 know labor history know back in the '30s23 the last time we had serious economic24 difficulties of this magnitude is when we25 216 3/1/11 - PUBLIC HEALTH - BILL 0804741 passed the minimum wage, 40-hour week,2 Social Security and the right for3 public-sector employees in Wisconsin to4 bargain, right? We passed all those laws5 in the worst economic times, and did that6 stop us from recovering? Not as far as7 anyone knows. And there is a connection8 with the economy, with the macro economy,9 which is we will not get out of this10 economic downtime until people feel11 secure, feel confident about the world,12 feel a sense of stability, and paid sick13 days helps. 17 And that's the real problem in this18 economy right now, is people aren't19 spending money because they're afraid,20 rightly so, that they might lose their21 job. Well, with this bill, you can give22 Philadelphia employees some confidence23 that at least if their child or they get24 sick, they won't lose their job and25 217 3/1/11 - PUBLIC HEALTH - BILL 0804741 they'll be a little more comfortable2 going out and buying a TV at Wal-Mart, or3 whatever it might be. I don't know if4 there's a Wal-Mart in Philly. My5 apologies. 9
Some of the15 concerns that were expressed privately by16 folks who were, I guess, in HR in larger17 organizations were concerned about a lot18 of the paperwork and things that they19 feel that they may have to do as a result20 of the bill. Have you done any analysis21 of institutions like, for example,22 universities and larger institutions that23 may employ some part-time folks or people24 who you can't determine whether they're25 218 3/1/11 - PUBLIC HEALTH - BILL 0804741 full time or not because they're either2 non-tenured professors or part time? I3 mean, all that group of folks that are in4 an institution as large as a university,5 has there been any indication that6 there's any additional cost?7
That's a great8 question. In San Francisco, one of the9 key differences between your ordinance10 and that in San Francisco is that your11 ordinance has an exception for employers12 that already provide enough days, and in13 San Francisco, we found one-third of14 employers saying it was kind of hard to15 implement this because it was a new16 paperwork requirement. The 30 hours made17 it kind of complicated. And so I think18 the way this law is written is much more19 business friendly. For employers who are20 already doing the right thing, they won't21 have those transition costs. But those22 are transition costs. It's just like the23 40-hour a week. People had to learn how24 to punch time clocks, but people learned25 219 3/1/11 - PUBLIC HEALTH - BILL 0804741 how to do it and then that's the way it2 works.3
All right.4 And I just want to make just -- I want to5 embarrass Barbara for a minute, because6 every time I see you and you're in a7 public forum, I have to say this. When I8 was working my way through college and I9 was a busboy and a member of Local 301,10 by a dues-paying member of Local 301, I11 worked for Barbara. She was my waitress.12 I worked for her, and she was the best13 tip-outer of anybody I ever worked for.14 So I just wanted to say hello and thanks.15
Sure.19 Thank you very much for your20 testimony. We'll go to the next person,21 and probably by the time we finish the22 panel, Councilwoman Brown may have some23 questions.24
My name is Diane25 220 3/1/11 - PUBLIC HEALTH - BILL 0804741 Mohney. Thank you for having these2 hearings. I think they're very3 important. 5 I'm a registered nurse and a6 certified school nurse. For 29 years, I7 worked for the School District of8 Philadelphia. I had a rich and rewarding9 career, and I now occasionally work as a10 substitute school nurse. 12 I want to digress a little bit13 here after Dr. Drago's comments. I just14 came back from Scandinavia. I visited a15 friend in Finland. She got a year off16 for maternity leave with pay. 18 We're just asking for five lousy paid19 sick days. 2 For a number of reasons, I3 support this legislation. I see it as4 children not having to come to school5 sick. 9 I support it because parents10 need to be able to stay home with sick11 children. They need to be able to come12 to school for their children when they13 become ill during the school day, and14 they need to be able to take them for15 medical appointments. 20 Emergency rooms are expensive. They're21 for people with life and death illnesses,22 and staff shouldn't have to be triaging23 these kind of colds and flus and things24 like that, trying to get through to take25 222 3/1/11 - PUBLIC HEALTH - BILL 0804741 care of the people that really, really2 need emergency care. 6 Usually when children come to7 school sick, they spend some time in the8 classroom with their classmates and their9 teachers. When the teacher notices that10 the child doesn't feel -- seems to not be11 feeling well, they get sent to the school12 nurse, and in the absence of the school13 nurse, they're sent to the secretary in14 the main office. In the event that a15 parent can't come, the child just16 oftentimes has to go back to class and17 just sit with a trash can next to them,18 and I'm not going to be any more graphic19 than that. 7 It results in about a $600 ride in an8 ambulance that probably could have been9 avoided if the child was home with a10 parent. 15 I wanted to go on here. Oh, I16 want to point out too that our schools17 are really, really -- every staff member18 in a school is counted on to be there19 every minute of the day. 6 First, just getting primary care can be a7 challenge if a parent doesn't have sick8 leave. 11 They also require updates on12 immunizations. I don't know when working13 parents are supposed to do that, much14 less follow up if the child fails the15 vision test at school and needs16 eyeglasses or needs to have their hearing17 checked out because they aren't hearing18 well. 5 If parents happen to have a6 child with many medical issues, multi7 handicap kids, children with asthma,8 children with diabetes, they require a9 lot of time at the doctors, but they10 require less time if they can get in11 there and get to their appointments and12 get that child stabilized and get that13 child to the point where they have the14 medication that they need, they have the15 treatments that they need. 20 I'll just end it up here. It21 would be easier for parents if they had22 paid sick leave, not just for themselves23 but their children, too. It would be24 easier for society too if they had paid25 226 3/1/11 - PUBLIC HEALTH - BILL 0804741 sick leave. We need to teach our2 children when to go to the doctor. We3 need to teach them to go and have a4 medical home, to have a doctor that they5 can rely on. 13 I don't know if the people are14 still here that spoke against this bill,15 but I'd like to have them think about16 their child sitting in school next to17 another child who is vomiting in the18 trash can. 20
Who is24 next?25 227 3/1/11 - PUBLIC HEALTH - BILL 0804741
Good afternoon,2 members of Council. My name is Kathy3 Black. I'm the President of the4 Philadelphia Chapter of the Coalition of5 Labor Union Women. 9 We represent hundreds of union women, and10 some enlightened men as well, from dozens11 of different unions -- you can join,12 too -- from clerical workers, hotel and13 food service, security guards and14 teachers, social workers, nurses, even15 carpenters and one of the two women iron16 workers that works in the City. 25 228 3/1/11 - PUBLIC HEALTH - BILL 0804741 We're an all-volunteer operation. So we2 frequently work in coalitions with3 especially other women's groups and with4 community organizations and coalitions5 like the terrific one that's representing6 us today. And passage of this bill is7 our primary top priority right now, and8 actually three of our -- four of our9 members are testifying. 12 In fact, it was CLUW that13 brought this bill to the attention of the14 Philadelphia and Pennsylvania AFL-CIO,15 and you'll hear from Liz about that in a16 minute. 23 And for CLUW, our particular24 interest in this bill is the fact that25 229 3/1/11 - PUBLIC HEALTH - BILL 0804741 women make up a majority of those workers2 who would benefit. We're still clustered3 in the low-wage occupations, which4 provide little or no paid leave and5 little job security. And as Councilwoman6 Reynolds Brown pointed out, many of them7 are single mothers for whom the loss of8 even a day's pay, much less their job,9 would be catastrophic. 16 As some of you know, my day job17 is Health and Safety Director for AFSCME18 District Council 47, which represents the19 professional and technical City20 workforce, and I frequently assist our21 members who have health issues with22 navigating the use of their Family and23 Medical Leave benefits. 2 Because of that financial safety net,3 these workers can take the time that they4 need to recover from illness, injury or5 surgery. They can get a spouse with6 cancer to their chemotherapy7 appointments. 10 And as others have said, the financial11 protection and the job security provided12 by that paid leave provides incalculable13 peace of mind, makes the workers better,14 more productive and more loyal. 25 231 3/1/11 - PUBLIC HEALTH - BILL 0804741 You could -- after three occurrences, I2 think, in a year you could be fired, and3 an occurrence might be three weeks in the4 hospital with pneumonia, but it was still5 an occurrence, or it could be a half a6 day off with a twisted ankle. It didn't7 matter. And so about, I guess, it's a8 year and a half ago, one of our members9 who had 82 days of sick leave accumulated10 on the books but had used a few that year11 because he just had had a bad year, he12 had a few health problems, but he was so13 terrified of being disciplined, because14 he knew if he was out sick again, he'd be15 in jeopardy of losing his job. He came16 to work with a very high fever, sweating,17 shuddering, collapsed on the -- and he18 had been threatened. He had been told19 that he had to come to work -- collapsed,20 was taken by ambulance to the hospital21 and died. Eighty-two days of sick leave22 on the books, but the discipline was so23 extreme -- these are our employees,24 folks. 12 It's not a break-the-bank proposal any13 more than our hard-fought smoking14 ordinance was, despite what you may15 remember. S. is half a century25 233 3/1/11 - PUBLIC HEALTH - BILL 0804741 behind Europe, Scandinavia, Japan and2 others, which all require much more3 generous leave provisions than this bill4 sets. Many of them have healthier5 economies than we do, even in this6 recession. 9 As President Obama has been10 preaching of late, we must invest in11 business and the future, but we also must12 invest in and value the people who build13 that future and whose labor makes those14 businesses thrive.
So this is a unique15 opportunity for you and for all of us to16 show that you recognize the plight of our17 low-wage Philadelphians who live in18 constant fear that their next bout with19 the flu or a twisted ankle will20 jeopardize their ability to pay the bills21 and put food on the table. So we hope22 that you will show leadership and make23 our city -- put our city in the forefront24 on this issue. It's common sense. It's25 234 3/1/11 - PUBLIC HEALTH - BILL 0804741 very modest. )8
Thank you9 so much, Kathy, and thank you for all the10 good work that you do and you have done11 through the years. We appreciate it.12
Thank you,13 Councilwoman. 14 MS. 15 My name is Liz McElroy and I am the16 assistant to the President of the17 Philadelphia AFL-CIO, and on behalf of18 Pat Eiding and the Philadelphia AFL-CIO,19 thank you for allowing me this20 opportunity. 7 So as many of you know, many of8 the men and women represented by the9 AFL-CIO already have collective10 bargaining agreements that provide for11 paid sick leave or for time off when they12 need it. 20 We'd be in support of something like21 that. But we're also here to support the22 bill as it stands, because as Kathy just23 said, organized labor does have a long24 history of fighting for social and25 236 3/1/11 - PUBLIC HEALTH - BILL 0804741 economic justice for all workers,2 certainly not just for those we3 represent. 11 Fundamentally, this is a worker12 issue, one that impacts low-wage workers13 in particular, the least likely to have14 sick leave available. 21 It's also a sound business practice, as22 we've heard here before. )13 MS. McELROY: Thanks, but it's14 been a long day. 16 So we've heard from many people17 today that there is concern that this18 bill will adversely affect business in19 the City of Philadelphia. I think based20 on the results of the numerous studies21 that have been done out of San Francisco22 and perhaps other places, we don't23 believe that will be the case. 6 We're also concerned -- and I7 will say I'm concerned -- about the focus8 of the discussion from some of those who9 are opposed to this bill has been on the10 current economic climate. )17 MS. 19 Obviously as an organization20 which represents workers, we want21 employers to come to Philadelphia and to22 thrive here. We need the jobs. And23 certainly that's been said here numerous24 times today, that Philadelphia, we want25 239 3/1/11 - PUBLIC HEALTH - BILL 0804741 to put Philadelphia back to work, and we2 at the AFL-CIO also believe that's --3 absolutely want that. 9 So, finally, I'll just say, in10 the first testimony of the day,11 Mr. Greenberger from the City suggested a12 policy like this would be better coming13 from the federal government, and we14 couldn't agree more. However, it's no15 secret -- and Kathy just outlined it --16 that as a nation, we lag far behind most17 other nations, certainly industrialized18 nations, in terms of workers' rights and19 benefits for workers, and this is one of20 them. And it's a long way off at the21 federal level given the current climate,22 and that's all I'll say on that. And it,23 therefore, really does become imperative24 for cities like ours and for other cities25 240 3/1/11 - PUBLIC HEALTH - BILL 0804741 around the country to take on the2 challenge and to treat all workers with3 dignity and respect. )15
Thank you16 so much.17 The Chair recognizes Councilman18 Kenney.19 MS. McELROY: I bring them with20 me everywhere, by the way.21 (Applause.)22
Liz, part23 of your testimony was that a lot of the24 labor organizations that the AFL-CIO25 241 3/1/11 - PUBLIC HEALTH - BILL 0804741 represents have as part of their2 collective bargaining agreements sick3 leave. Could you give me like the top4 five types of or can anyone give me the5 top five types of employees or jobs that6 most likely are not covered with sick7 leave as a result of collective8 bargaining, just so I can get a flavor.9 I mean, I assume it's a lot in the10 restaurant industry and hotel industry11 maybe.12 MS. McELROY: I'm sorry,13 Councilman. Do you mean that don't14 have -- the top industries that don't15 have collective -- that aren't covered by16 collective bargaining agreements?17
The top18 five types of workers that would be19 positively affected by this bill.20
No, no;23 just in general. The top five industries24 where folks work that need this.25 242 3/1/11 - PUBLIC HEALTH - BILL 0804741 MS. McELROY: And I could2 probably defer this to Kathy, because3 she's the better expert on this bill, but4 I would say that the hospitality and5 restaurant industries would be first.6
Hospitality, food8 service, retail and healthcare, I think,9 right? I think somebody -- health and10 home care.11 MS. McELROY: Home care,12 childcare.13
That14 cleared it up for me. Healthcare,15 childcare, restaurant and hospitality.16
It's kind of care17 giving broadly, I would say, childcare,18 eldercare, nursing home care.19
Okay. Just25 243 3/1/11 - PUBLIC HEALTH - BILL 0804741 so I'm getting a better picture of who2 this ultimately affects. Thank you.3 COUNCILWOMAN TASCO:4 Councilman --5 MS. McELROY: We can get you6 more information on that.7
I think it's in8 some of your written testimony if it9 wasn't spoken about today.10
Very13 quick. Thank you, Madam Chair.14 Liz, you mentioned about the15 collective bargaining issue, and you said16 San Francisco has, what, a clause in17 there that says this will not interfere18 with collective bargaining?19 MS. McELROY: I am not an20 expert on the San Francisco bill, but I21 did look at it and contacted my22 counterpart there, and I do believe that23 there is a provision in the bill in San24 Francisco that provides for a waiver25 244 3/1/11 - PUBLIC HEALTH - BILL 0804741 where a collective bargaining agreement2 is in place, and it would have to be an3 explicit waiver that both sides would4 collectively bargain, as the term5 indicates.6
I know7 the Administration in their testimony, I8 think one of the people came up from the9 Chamber raised some concerns about that,10 and I know they're really concerned about11 collective bargaining. So we want to12 make sure we get that right for you.13 MS. McELROY: That would be14 good, and I can certainly follow up and15 get you the language if that would be16 helpful.17
Just one20 more suggestion. Thank you. Every time21 we've dealt with issues like this and the22 last time we dealt with it was leave for23 women who were experiencing or people who24 were experiencing abuse in the home or in25 245 3/1/11 - PUBLIC HEALTH - BILL 0804741 the workplace, and I'm not suggesting2 that we do it with this bill, but I know3 one of the ways we dealt with it last4 time was to look for a sunset provision5 after a year and then analyze whether or6 not there was the impact. And as we've7 seen, there really wasn't the impact. So8 I don't know whether or not it's a one-9 or two-year moratorium -- not moratorium;10 one- or two-year sunset provision.11 That's up to the sponsors. But I know12 the last time we did something like this13 that had the same concerns expressed by14 the business community, that after15 that -- was it a one-year sunset?16
And after19 the one-year sunset, we didn't hear a20 thing. So I'm just throwing it out.21
I just want to, for22 the record, thank Darrell Clarke, my23 Councilman; Bill Greenlee, my ward24 leader; and Blondell Reynolds Brown, my25 246 3/1/11 - PUBLIC HEALTH - BILL 0804741 feminist friend, for championing this2 important legislation.3
To the7 testifiers, I think it's important that8 it should not go unrecognized that9 because members of the Coalition have10 been at the table on a regular basis over11 many, many months, we've arrived at this12 point. And that's of value in13 proceedings like this. It needs to be14 put on the record how civil the friendly15 debate has been for us to arrive to this16 point.17 Would you agree, Councilman18 Bill Greenlee?19
And to the21 world that you've identified that will be22 positively impacted, it just speaks23 volumes, and we suggest that there's24 still a segment of our society that is25 247 3/1/11 - PUBLIC HEALTH - BILL 0804741 still trying to play catch-up, and unless2 we, coalitions like you and all of us on3 both sides, both in government and out of4 government, are not voices for them, they5 end up having no voice at all. And so6 bottom line, we thank you for the7 important work that you do.8 (Applause.)9
I would15 certainly agree with Councilwoman Brown16 that the dialogue was friendly today. We17 did have that meeting last Wednesday in18 the Caucus Room, whenever it was. It was19 not quite as friendly, but I got out20 alive, so I guess it was all right.21 MS. McELROY: Thank you.22
Thank you23 very much.24 The next panel would be Patrick25 248 3/1/11 - PUBLIC HEALTH - BILL 0804741 Conway. I guess he's not here. Ken2 Braithwaite, Henri Marcial.3 (Witnesses approached witness4 table.)5
I9 understand Mr. Conway has sent a letter,10 which will be added to the record. He's11 from the Pennsylvania Restaurant12 Association.13 Would you please decide who is14 going to go first and state your name for15 the record and begin your testimony.16
4 As I mentioned, we are here5 today to talk about our concern over the6 proposed Bill 080474, Promoting Healthy7 Families and Workplaces. While we8 appreciate the opportunity and the intent9 of this bill, there are several10 unintended consequences which we feel11 compelled to share with you. 23 To kind of set the background24 and create some atmospherics for you, as25 250 3/1/11 - PUBLIC HEALTH - BILL 0804741 you know, many analysts continue to2 portray our overall economy as beginning3 to recover. However, the unemployment4 rate remains mired at unacceptably high5 levels here in Philadelphia, currently6 close to 11 percent. Meanwhile, one of7 the City's chief economic drivers, our8 healthcare sector, we face growing9 economic challenges. 22 According to Moody's, the23 sluggish economic recovery, continued24 high unemployment and thinning ranks of25 251 3/1/11 - PUBLIC HEALTH - BILL 0804741 insured patients are weakening the2 financial stability of our hospitals. 7 I think, Madam Councilwoman,8 you know that only too well, as I've9 appeared before you on many times to talk10 about the obstetric crisis as well as11 some of the other financial pressures on12 our hospitals. However, this year, for13 the first time since 1998, Medicare rates14 have declined. Currently, as an aside,15 for the actual dollar cost for hospitals16 providing care to individuals, Medicaid17 reimburses us about 80 cents on the18 dollar. Medicare reimburses us about 9619 cents on the dollar. 21 Unfortunately, the finances of22 hospitals in the City and region reflect23 the reality all too well of the financial24 crisis. Philadelphia hospitals had a25 252 3/1/11 - PUBLIC HEALTH - BILL 0804741 razor thin average margin of just two2 percent this last year, well below the3 six percent which is considered adequate4 for long-term sustainability. 7 Philadelphia depends on its8 hospitals for crucial healthcare9 services, not to mention stable10 family-sustaining jobs. Five of the ten11 largest employers in the City of12 Philadelphia within the region are13 hospitals. 15 We employ directly over 40,00016 individuals and we generate another17 45,000 jobs. 22 Well, I wanted to say that to put it in23 perspective. Unfortunately, as proposed,24 this bill opens the way to many25 253 3/1/11 - PUBLIC HEALTH - BILL 0804741 unintended consequences, some that I'm2 sure that you have not realized. They3 would limit hospitals' ability to manage4 our workforce effectively, adding5 hospital administrative burdens and6 financial challenges. Hospitals, as you7 know, are open 24/7 to all who need us,8 providing care that often means the9 difference between life and death. 16 To address the special staffing17 challenges -- this is probably the most18 pertinent part of my testimony -- I'll19 relate it to these dynamic and varied20 operational needs. We have special21 part-time employees. They're a small but22 important component of our work, and23 these individuals comprise of nurses and24 other clinicians that work on a per diem25 254 3/1/11 - PUBLIC HEALTH - BILL 0804741 basis; that is, a day-to-day basis. They2 are technically employed in a part-time3 capacity, but they have no guarantee of4 work. Hospitals request their services5 when needed, and per diems can either6 accept or reject those opportunities to7 be employed. 17 The estimated impact to individual18 hospitals ranges anywhere from about19 $250,000 all the way to 1 million. 23 Contrary to what Ms. Bellesorte24 testified earlier today, this bill would25 255 3/1/11 - PUBLIC HEALTH - BILL 0804741 also cause unintended administrative2 burdens for our hospitals. 10 The bill's method of11 calculating earned sick time could also12 create unnecessary administrative13 burdens. Many hospitals, as you may14 know, utilize a two-week pay period15 system to calculate employee hours,16 benefits and earned sick time. In17 contrast, this bill proposed is that18 accrued sick time be calculated on an19 hourly basis.
23 As you can see, the proposed24 bill threatens several workforce25 256 3/1/11 - PUBLIC HEALTH - BILL 0804741 management tools of special importance to2 hospitals and our patients. 5 It could also mean the ability not to6 save lives. 10 Finally, this bill could11 undermine existing employee benefit12 practices, such as paid time off. 18 So as I stated as I began, DVHC19 and the hospital community understands20 the bill's goal of providing employees21 who work in Philadelphia with earned sick22 time. 25 257 3/1/11 - PUBLIC HEALTH - BILL 0804741
Thank4 you, Madam Chair.5 Sorry, sir. I have to -- first6 of all, some of those issues you address7 I think are also being addressed in the8 amendments that were put forth.9
Well, I have10 not seen the amendments yet, Mr.11 Councilman.12
No. I13 understand. I'm just stating for the14 record that they are, like the paid time15 off issue. We are dealing with that.16
We're looking17 very forward to seeing those amendments.18
Okay.19 Great.20 I can't help but say this: You21 represent the hospital industry, and as I22 said numerous times, the bill deals with23 the financial aspect but also deals with24 the health aspect. You came here25 258 3/1/11 - PUBLIC HEALTH - BILL 0804741 representing the hospital industry and2 don't mention the health issue of the3 workers. I don't understand why that4 wasn't at least part of your testimony.5 (Applause.)6
I didn't9 hear that. I heard about the financial10 situation.11
But I said at12 the end that we maintain a very generous13 policy towards our employees.14
But you also17 need to recognize -- and a lot of times18 we don't. Before I came into the19 healthcare industry, I didn't recognize20 this. But hospitals are not only social21 institutions that provide care to the22 communities at large, but they're also23 businesses that have to have a healthy24 bottom line, and I think the data will25 259 3/1/11 - PUBLIC HEALTH - BILL 0804741 substantiate the fact that we are not a2 healthy industry. We haven't been for3 some time. I've been here before you all4 many times to talk about that, and I hope5 that you would understand that and6 appreciate that.7
No. I8 think we do, and we do understand that.9 It's just that I just noted that you10 never talked about the health of the11 workers in that whole testimony. You12 talked about the financial aspect, and we13 all agree, the financial aspect is14 important. I just didn't hear that.15
But I don't16 see hospital workers here this morning17 that are --18
What19 difference does that make? They're20 working.21
Well, as I22 said, our industry takes care of our23 people.24
Okay.25 260 3/1/11 - PUBLIC HEALTH - BILL 0804741 But I was going to get to that point.2 You talked about your progressive3 policies. You see as far as the nine4 sick days and all. Would workers in most5 of your hospitals be covered by that?6
Probably.7 They probably have more generous8 policies. We're in the process now --9 this hearing came up very quickly, as you10 all know. We're working with all of our11 members to assess the individual policies12 at the hospitals, but we can attest to13 the fact that having spoken with several14 of them, that, yes, this actually would15 create an artificial floor. You may not16 necessarily want to go there, but, again,17 that's another aspect of this proposal.18
Well, if19 you cover more than that, then why would20 you be concerned about it then? I guess21 I'm not --22
Because as I23 mentioned, a big part of our business has24 to do with part-time employees, and25 261 3/1/11 - PUBLIC HEALTH - BILL 0804741 part-time employees, as I mentioned -- I2 talked as much as the time allowed to3 explain to you about the per diem4 employees and how important they are to5 our system. So that's where the6 additional cost and burden would be.7
I guess8 that could be addressed. I know you talk9 about the administrative burden, but, I10 mean, most of the hospitals, you keep11 track of people's time and all already,12 don't you? So would it be that much more13 to keep track of --14
You're15 talking about duality of systems. I16 mean, yeah. As you well know, we attempt17 to create economies of scale and things18 to save monies. This would then go in19 the opposite direction. But, I mean, if20 that is the desire of Council, we would21 figure that component out. I mean, the22 greater cost to us is the labor costs.23
Okay.24 All right. Thank you.25 262 3/1/11 - PUBLIC HEALTH - BILL 0804741
Thank you,2 sir.3 COUNCILWOMAN TASCO:4 Councilwoman Brown.5
Good6 afternoon, gentlemen. Have you had any7 conversation with any of the Chamber of8 Commerces and/or members of the Coalition9 members that have spoken here today?10
Yes, ma'am.11 We were actually here at the meeting on12 the 23rd of February with Councilman13 Clarke and Councilman Greenlee. I wasn't14 personally. I was in Washington, DC, but15 my colleague, Brian Eury, was here to16 represent hospitals.17
21 My name is Henri Marcial. I'm here as22 legal counsel for the Small Business23 Union, and I am presenting testimony in24 opposition to City of Philadelphia Bill25 263 3/1/11 - PUBLIC HEALTH - BILL 0804741 No. 2 The Small Business Union is3 comprised of approximately 7,500 members4 who own and operate small family-oriented5 businesses. These businesses are most6 often located in the same neighborhoods7 where the proprietors live and provide8 the services necessary to sustain those9 neighborhoods. 16 The bulk of these small17 businesses are located in the heart of18 the City's residential communities in the19 poorest sections of the City. They are20 most often started by recent minority21 immigrants or first-generation children22 of such immigrants as a way of supporting23 their families. These businesses employ24 on average four other individuals. 4 The Small Business Union5 members support 50,000 families in some6 of the poorest sections of the City of7 Philadelphia and the country. Recent8 statistics indicate that the 7th9 Councilmanic District is the second10 poorest in the country. By way of11 further example, two-thirds of our12 members can be found in the 1st, 5th and13 7th districts of this city. 17 In a broader sense, it is18 estimated that there are approximately19 90,000 small businesses citywide of this20 type. 25 265 3/1/11 - PUBLIC HEALTH - BILL 0804741 There are significant legal2 concerns. To begin with, a preliminary3 review of the authority by City Council4 to institute this bill and the nature of5 this bill was conducted. We've6 determined that the direct mandate format7 upon small businesses in this manner is8 unconstitutional and violates the federal9 commerce clause, the federal labor10 relations laws and regulatory structure,11 and the Commonwealth of Pennsylvania12 Constitution. In particular, this bill13 impairs the contracts for employment14 established between businessowners and15 their employees. It grants a section of16 the population a special privilege. It17 discriminates against ethnic minorities18 and immigrants. 7 What's not mentioned is that in these8 countries, your individual tax rate is9 well above 50 percent, which is one of10 the reasons why we do not have those here11 in this country. This is the United12 States of America. This is Philadelphia,13 Pennsylvania. 15 Regardless of the legality of16 this bill, it is also significant -- has17 significant economic failings and will18 not achieve its purpose or stated end19 based on simple practical economics. In20 short, here are just some of the21 following unintended economic22 consequences that will occur, especially23 with regard to the smallest businesses in24 the community:25 267 3/1/11 - PUBLIC HEALTH - BILL 0804741 Small businesses will reduce2 their staff size. Many small businesses3 will move out of the City or close. The4 number of new business openings will5 decrease. The availability of financing6 will decrease because there will be an7 additional cost that must be factored8 into business budgets and expenses. Of9 the businesses that remain, many will10 hire employees under the table, which11 increases the potential for employee12 abuse. Services and goods in already13 poor neighborhoods will become more14 expensive as costs are passed on to the15 consumer or services disappear16 altogether. The limited job pool for17 people in these areas that have few or no18 skills will quickly decrease even19 further. And this type of legislation20 increases the uncertainty of business21 formation, initiation and growth. It22 will cause future business -- it will23 chase future businesses out of24 Philadelphia. Once the capital for such25 268 3/1/11 - PUBLIC HEALTH - BILL 0804741 new or expanded businesses leaves, it2 will not come back. 5 In the end, this bill will be6 directly responsible for raising the cost7 of goods and services to the poor and8 will strip them even further of the9 limited jobs available to them.
This is10 contrary to the overall health and11 welfare of the community. We cannot12 imagine that this is the intent of City13 Council. 15 Just to highlight some of the16 other activities that were mentioned17 here, the creation of more jobs actually18 promotes the health and welfare of the19 community. We have people employed, they20 have money, and they can purchase not21 only the goods and services they need but22 also health insurance or healthcare. As23 part of the Small Business Union, we24 recently negotiated for our members25 269 3/1/11 - PUBLIC HEALTH - BILL 0804741 healthcare benefits packages that our2 businessowners, their employees and their3 families can purchase into at reduced4 rates. 8 It must be noted that all9 hiring and employment is a bargain-based10 interaction between the employer and the11 employee. Those large companies and12 industries that can afford to produce or13 provide generous benefits packages14 provide them to the employees who have,15 in a competitive employment market, won16 the right to work in that location and17 earned that job and that privilege. )23
4 These are personal5 relationships that they have with their6 employees. 12 This business environment is13 heavily weighted against the small14 businesses. They are feeling abused, and15 they do not receive the benefit of all16 their work. These owners can't take any17 more of this activity. 22 The focus here is affordable23 healthcare, which this bill does not24 address. It just passes the buck. As25 271 3/1/11 - PUBLIC HEALTH - BILL 0804741 I've mentioned, the SBU has been working2 to provide benefits for its members and3 its employees, and we've negotiated a4 healthcare package which does that at5 reasonable rates. 8 Recently, the Small Business9 Association has also negotiated to bring10 a call center and create more jobs here11 in the City of Philadelphia. 15 As a result of this particular16 legislation and its timing, I now have to17 go back to that company, which is one of18 the electric generation suppliers now19 competing in the State of Pennsylvania,20 and review this matter with them. 3 They are the ones taking the risk. 9 If you heard the figure I10 quoted earlier, 50,000 families are11 supported by these individuals in the12 poorest sections of the City. That13 50,000 is larger than any single other14 industry or group in the City of15 Philadelphia. Even if you were to16 exclude employers with five or fewer17 employees from this bill, of the 90,00018 businesses in the City of Philadelphia,19 you probably still are addressing 4020 percent to 30 percent of them. 22 In conclusion, we suggest that23 the City Council take actions that will24 encourage and create new jobs in the City25 273 3/1/11 - PUBLIC HEALTH - BILL 0804741 of Philadelphia. The health and welfare2 of the community is better served by job3 creation rather than job destruction. 8 We are willing to discuss these9 matters with City Council to reach10 economically sustainable job creation in11 our communities. 14 And I will note, the15 Councilwoman was very pleased to mention16 the participation she had from the17 advocate groups over the months in18 reviewing and analyzing this particular19 bill. I have had four days' notice to20 prepare for this hearing. 2 I have interviewed my members,3 the handful of members I could interview4 in four days. Of the ones I've5 interviewed, all of them could not afford6 to provide these services to the handful7 of employees they have. One of those8 businesses is a brand new business that9 opened six months ago. They currently10 have 15 new jobs they created. )20
Thank23 you.24 Sir, I'm not going to get into25 275 3/1/11 - PUBLIC HEALTH - BILL 0804741 debate with everything you said, but a2 couple things I want to note. One, for3 the record, we have an opinion from the4 City Solicitor's Office that, in their5 opinion, this bill is legal and we have6 the right to do it. Now, I know lawyers7 can disagree on that, but I just wanted8 for the record to state that.9 (Applause.)10
You also11 note federal law. To the best of your12 knowledge, the San Francisco law, was it13 ever challenged?14
As I said, I've15 only had four days to prepare for this.16 We have not been adequately provided with17 the time to address this matter, as have18 all the advocates.19
No. I --20 well, I asked you a question. I heard21 your statement earlier. So you don't22 know if it has been challenged federally?23
I don't have all24 that information, no.25 276 3/1/11 - PUBLIC HEALTH - BILL 0804741
Okay.6 Fine. One last question. Again, I'm not7 going to debate on everything. Earlier8 in your testimony you said I believe9 words to the effect, this is prejudicial10 against ethnic minorities or something11 like that?12
The vast majority13 of new businesses formed in the City of14 Philadelphia are formed by ethnic15 minorities. They are not formed by16 second, third or fourth-generation17 residents. They are formed by new18 immigrants. This is the engine that19 drives the economy here in the City of20 Philadelphia and actually in the country.21
And I22 understand the concerns of small23 business. I'm not downgrading that by24 any stretch of the imagination, but I25 277 3/1/11 - PUBLIC HEALTH - BILL 0804741 guess when you use the word "prejudice,"2 I mean, isn't it true that a lot of3 ethnic minorities would also benefit by4 this bill because they have jobs in areas5 that do not provide sick benefits right6 now?7 (Applause.)8
No, they will not15 benefit by this bill. This bill does16 nothing but pass the buck. This bill17 does nothing but increase costs and18 services. This bill diminishes the19 availability of services to the20 community, that very same ethnic minority21 community in those very same poor areas22 of the City. The answer is no.23
Okay. My24 answer is yes. We disagree. Thank you.25 278 3/1/11 - PUBLIC HEALTH - BILL 0804741 Thank you, Madam Chair.2 (Applause.)3
One beauty9 of the public hearing process is that it10 does allow as many interested voices as11 are interested a chance to come to the12 table and voice their views. So I will13 share in the responsibility that maybe we14 did not cast the net wide enough to make15 sure that all interested parties were16 aware of it.17 With that said, what rights,18 what opportunities should employees have19 when it comes to health benefits?20
The key word21 there is "benefit." Small businesses, in22 this case the smallest of the businesses23 in the community, are putting everything24 on the line, basically their family25 279 3/1/11 - PUBLIC HEALTH - BILL 0804741 savings. They're turning around and2 saying, I moved from XYZ country with3 whatever we have in our pockets and we're4 putting it on the line in the future of5 living -- in the hope of living the6 American dream and providing a better7 future for our children. The only way8 for them to earn an income is to actually9 start a small business. This country is10 a country of small businessowners.11 In a traditional sense,12 employees derived their benefits from13 showing that they were valued, skilled14 and able to do the work that they were15 required to do. In the current economic16 market, the best employees get hired by17 Fortune 500 companies. They get hired by18 the large hospitals. They get hired by19 the professional services companies, the20 hotels, where they have adequate benefits21 packages, including healthcare, including22 sick time off, and this doesn't actually23 address or touch them.24 The individuals at this level25 280 3/1/11 - PUBLIC HEALTH - BILL 0804741 are most often unskilled, under-skilled2 and/or un or under-educated.3
And for those6 individuals in a normal competitive7 marketplace, in a normal competitive8 marketplace, they would still be able to9 earn the right to have those benefits in10 an environment assuming that business was11 doing well. And I'm not saying that12 people shouldn't have access to13 healthcare. I'm not saying people14 shouldn't have the ability to care for15 their loved ones. I'm saying this is a16 mandate that has real economic costs on17 real individuals who have already laid it18 all on the line and are not being19 recognized for the fact that they have.20 These people are, on a daily basis, one21 step away from bankruptcy, one step away22 from the welfare rolls, but one step away23 from their whole family being homeless,24 because they've mortgaged everything to25 281 3/1/11 - PUBLIC HEALTH - BILL 0804741 start a business and support these other2 four families in so doing. To turn3 around and arbitrarily mandate that they4 have to incur an additional cost in the5 City that has one of the highest business6 costs to begin with is unreasonable.7
I'm a private18 businessowner. I own my own business, if19 that's what you mean. I own my own law20 firm. But I purchase those for myself.21
Well, I22 think I need to follow the lead of my23 colleague Councilman Bill Greenlee. Let24 me move to another question and not argue25 282 3/1/11 - PUBLIC HEALTH - BILL 0804741 with you on those points.2 On what grounds would you file3 a lawsuit?4 MR. MARCIAL:5 Constitutionality. This violates the6 Pennsylvania State Constitution in that7 it addresses labor, trade in an8 inappropriate regulatory manner, as well9 as, as I stated previously, ethnic10 minorities are being discriminated11 against unduly. It targets a specific12 population, and the brunt of this bill13 falls on that group. The brunt of this14 bill falls on those 90,000 small15 businesses.16
Thank you21 very much. Thank you for your testimony.22 Thank you.23
Thank you,24 ma'am, very much.25 283 3/1/11 - PUBLIC HEALTH - BILL 0804741
This is2 it. Rebecca Foley. Did she testify? Is3 Rebecca still here? And Charles4 Pinchback.5 (Witnesses approached witness6 table.)7
So you all8 are just going to sum up, because we've9 heard the whole cow. Thank you.10 Is there anyone else here to11 testify on this bill?12 (No response.)13
This is14 the final panel.15 Good afternoon. Would you16 identify yourself for the record.17
My name is18 Charles Dave Pinchback and I'm here to19 speak on the behalf of Action United.20 Action United currently has 42,00021 members statewide, and these are a form22 of low- and moderate-income Pennsylvania23 families, and we also have 25,000 of24 those members in Philadelphia alone.25 284 3/1/11 - PUBLIC HEALTH - BILL 0804741 We support this bill simply2 because it makes no sense 210,000 workers3 in Philadelphia without paid sick time.4 This leaves them, their children or their5 family members when they get sick out in6 the cold, with no one to represent them.7 I've been here all day, all8 morning, and all I hear is people talking9 about costs, money, money. I mean,10 seriously, I mean, it shouldn't be about11 money. It should be about health. I12 mean, seriously. Somebody goes to a13 restaurant and the server sneezes on your14 food or the cashier coughs on you or15 daycare teacher comes to work and gets16 your child sick, that's a major issue. I17 don't know who these people are, but all18 they keep saying is money, money, it's19 going to cost us, it's going to cost us.20 Any smart businessman knows you got to21 spend money to make money, plain and22 simple.23 (Applause.)24
Then they25 285 3/1/11 - PUBLIC HEALTH - BILL 0804741 constantly speak -- I keep hearing people2 say that small businesses oppose the3 bill. Well, we currently have over 254 small businesses that already signed on5 to support this campaign. So who are6 these people? They keep saying this,7 that, that. I don't hear no names. I8 don't see no proof. As far as I know,9 they're lying.10
Well, they11 have their opinion. So you may go ahead12 with your statement.13
They do have14 the opinions, but most of these big15 businessowners who are opposing this bill16 don't even live in Philadelphia. I was17 born and raised in Philadelphia, and18 personally if you're not a Philadelphia19 citizen, you ain't got nothing to say to20 none of my Councilmen and women, because21 y'all represent us, not them.22 (Applause.)23
You got to bear24 with me. I never been in here before.25 286 3/1/11 - PUBLIC HEALTH - BILL 0804741
But I just want3 to say that it's sick workers affect4 others, and that also leads to poor5 productivity. They make them less6 productive. But all the Action United7 members, they're for this bill.8 This bill been around,9 according to my knowledge, three years.10 I heard one person say that we need time.11 How much time do you need? What you12 need, all to die and then a whole new13 generation is born before you pass this14 bill?15 I mean, I don't want to live in16 a city where it's not safe to eat in a17 restaurant, it's not safe to go to the18 arcades. I mean, technically, I mean,19 the way I'm hearing everything, I'm20 afraid if this bill don't get passed. I21 might have to home-school my children,22 because y'all literally telling me it's23 cool for people to spread viruses. Not24 saying City Council. I'm just saying the25 287 3/1/11 - PUBLIC HEALTH - BILL 0804741 people who are coming in here with all2 they big money and all they fancy lawyers3 who never been in none of these4 neighborhoods that they speak so highly5 of, these poppy stores, these Chinese6 stores that I spent my whole life buying7 stuff from.8 (Applause.)9
And one thing I10 can say for sure, these poppies, these11 Chinese, these small businesses that he's12 talking about, that this lawyer was13 talking about, I don't see nobody from14 our neighborhoods in there. They hire15 their own family. They don't get16 paychecks. This is not right. You17 understand?18 (Applause.)19
We need to20 focus on what's right and wrong, not how21 much something costs. It's about what's22 fair. And this is fair. Anybody who23 oppose this bill must be from another24 planet, seriously, because I'm pretty25 288 3/1/11 - PUBLIC HEALTH - BILL 0804741 sure because they get paid sick time,2 they not concerned about us. And I had3 tons of jobs my whole life, and I have to4 say, only like three of them out of5 probably like 30 jobs I had paid sick6 time. That's not right. It's not fair.7 It's very important that some8 type of legislation is written so that --9 we need y'all to protect us. We can't do10 it. We go and knock on they doors and we11 complain about it, Oh, boss, I can't do12 it, man, my baby is sick. They firing13 us. We come down here, they come with14 they fancy lawyers, oh, look at them.15 They ain't nothing. You heard how the16 man -- come on. He called us, I mean, we17 low minorities. We low in rank, low in18 position. And because of that, that19 gives them the right to come in Philly20 and do whatever they want to do, take21 from us. We're the ones spending money22 in they businesses. They don't spend23 money in they own hotels and restaurants.24 And all that, Oh, the business is going25 289 3/1/11 - PUBLIC HEALTH - BILL 0804741 to leave, they ain't going nowhere,2 because there's too much money in Philly.3 They ain't going nowhere. They going to4 sit there and deal with it.5 (Applause.)6
Thank you9 very much for your testimony. Appreciate10 it.11
Good16 afternoon. Thank you for the opportunity17 to present testimony in support of the18 Promoting Healthy Families and Workplaces19 Act. I will try to be brief. My name is20 Kate Etherington. I'm the Executive21 Director of Philadelphia Physicians for22 Social Responsibility. PSR represents a23 diverse membership of physicians, nurses,24 medical students, public health25 290 3/1/11 - PUBLIC HEALTH - BILL 0804741 professionals and other healthcare2 workers. 7 I'm going to quote one of our8 Board members, a physician, Dr. 11 As a practicing physician12 deeply concerned about the health of the13 public and the impact that governmental14 policy decisions have on my patients in15 Philadelphia, I am frequently perplexed16 by the lack of sensible policies that17 affect the health and well-being of so18 many citizens, citizens who struggle to19 make ends meet, raise healthy families20 and be responsible employees. 25 291 3/1/11 - PUBLIC HEALTH - BILL 0804741 I have patients right now who2 feel that they are in charge of their3 health. 13 When workers go to work sick,14 they risk infecting others. Forty15 percent of workers contract the flu from16 their workplace colleagues. We've heard17 a little bit about the H1N1 swine flu18 virus today. 21 Workers without paid sick time choose to22 go to work sick despite these warnings23 for their own and others' health because24 they could not take the time off without25 292 3/1/11 - PUBLIC HEALTH - BILL 0804741 pay. Many other illnesses are also2 highly contagious and can spread through3 the workplace quite easily. Of the 184 million neurovirus or stomach flu5 infections nationally, half come from ill6 food service workers. Since most food7 service operators don't offer paid sick8 time, workers are forced to work sick or9 take unpaid leave. 12 Workers who lack paid sick days13 are more likely to work in jobs requiring14 frequent contact with the public,15 including vulnerable populations, such as16 young children and the elderly. 20 Paid sick days are also21 important to prevent illnesses and manage22 chronic conditions. 8 Just for one example, asthma is9 a chronic condition requiring10 preventative care. 15 Facts aside, each individual16 deserves the right to get better when ill17 without fear of losing their job, their18 pay or risk infecting other people. In19 particular, many low-income workers who20 are often without paid sick days are21 teetering on the edge of that economy22 cliff, as Dr. Plumb states. )10
Thank you11 very much.12 And, Rebecca, you're going to13 be brief, because we've heard all the14 statistics and all the stories. We do15 not need to hear that again. You16 established this morning the record for17 the need for the bill. So we appreciate18 your --19
I will try to be20 very brief, Councilwoman. And thank you21 for having us here today and conducting22 this public hearing. 25 295 3/1/11 - PUBLIC HEALTH - BILL 0804741 My name is Rebecca Foley. 10 I just want to address a few11 points that were made by the panel that12 came up before us. There was a question13 about the healthcare industry providing14 paid sick days, and I can just say in15 Philadelphia, research has found that16 38,600 healthcare and social assistant17 employees, including people who work with18 children and the elderly, do not provide19 paid sick days. 21 Also, there was also a point22 brought up by Kenneth Braithwaite about23 businesses leaving, operating over the24 City lines and how that would be very25 296 3/1/11 - PUBLIC HEALTH - BILL 0804741 difficult. 9 There was talk about not giving the other10 side enough time, but this bill was11 actually introduced three years ago. It12 was introduced in 2008, and we've been13 advocating for it since, and it has been14 public record since 2008 and been in the15 news quite a bit since that time. 19 And, lastly, I just wanted to20 say that there is a memo saying this bill21 is constitutional. 2 So I just want to now just3 briefly touch on my testimony. You have4 it. 6 I want to say that Women's Way7 is the nation's oldest and largest8 women's funding federation. So we do9 both fund and advocate for women. Women10 are overrepresented in low-wage11 positions, which are significantly less12 likely to allow them to earn paid sick13 days. Yet, working women remain the14 primary caregivers, and for many women,15 having a sick child or elderly family16 member means losing a day's pay or even17 their job. This balancing act becomes18 even more challenging for low-income19 women working who are also the sole20 breadwinners in a family. 4 I'm not going to go over the5 facts and statistics. 9 I want to point out that10 despite society's caring rhetoric about11 children and families, women are really12 penalized for the caregiving roles they13 have in a family. Two-thirds of working14 mothers do work outside the home, and15 women's earnings make up a substantial16 share of their family's income. But it17 is no surprise that half of working18 mothers miss work when their children get19 sick, and of these working mothers, half20 do not get paid when they take this time21 off. 25 299 3/1/11 - PUBLIC HEALTH - BILL 0804741 Many clients of Women's Way's2 funded agencies are working mothers,3 earning low wages and just trying to make4 ends meet. These women struggle daily,5 and we do daily hear about the struggles6 they go through to meet the basic needs7 of their families. )20
I'm trying to skip21 through a lot.22 So as a strong advocate for23 paid sick days, Women's Way does provide24 its employees ten paid sick days per25 300 3/1/11 - PUBLIC HEALTH - BILL 0804741 year. Women's Way's Office Manager,2 Tiffany Lomax, is a single mother who3 uses her sick days to take care of her4 13-year-old son, who does have severe5 asthma and allergies. Tiffany is able to6 use her paid sick days to care for her7 son, and when he has an asthma attack or8 respiratory infection, which does9 unfortunately happen very often, Tiffany10 is relieved knowing that she can take the11 time off to care for her son without the12 fear of losing her job.13 Unfortunately, that was not14 always the case for Tiffany. Prior to15 currently working at Women's Way, she16 worked at a number of different17 companies, and despite her hard-working18 ambition and experience, she was let go19 from these jobs because missing work to20 care for her sick son. Tiffany has21 stated how very fortunate she is to have22 a job that she has flexibility to work23 hard but also care for her son, and24 really is grateful to work in this family25 301 3/1/11 - PUBLIC HEALTH - BILL 0804741 work -- work-family balanced climate.2 I just want to close with3 saying that on behalf of Women's Way and4 the Coalition, we urge you to support5 this very commonsense piece of6 legislation. It's really a basic7 protection for workers. We must ensure8 that all workers in Philadelphia, both9 women and men, have the chance to earn10 paid sick days. Providing time off to11 attend to their own health needs and the12 health needs of their children and family13 members will ensure a more productive and14 vibrant workforce in Philadelphia, and I15 think that's been proven here today by16 the facts and statistics and studies and17 San Francisco's testimony.18 By passing this bill,19 Philadelphia workers could then finally20 afford to stay home when they're ill and21 keep children home from school when they22 are sick, all without the fear of losing23 a day of pay they really cannot afford to24 live without.25 302 3/1/11 - PUBLIC HEALTH - BILL 0804741 So we thank you for your time2 and consideration today and thanks for3 staying with us throughout this long4 process. We do appreciate it.5 (Applause.)6
Thank you.7 Thank you very much for all the hard work8 you do for Women's Way and Women's Way9 leadership on many, many issues that10 affect women and families. And I noticed11 that on August 17th, you testified in12 Harrisburg on Bill 1830 before the13 Pennsylvania House Labor Relations14 Committee. Could you tell me the status15 of that bill and what you think might16 happen with that?17
Sure. So we18 testified last session. The hearing19 actually went quite well. There was only20 one person who testified against the21 bill, the Pennsylvania Chamber of22 Commerce, but it was one person, and then23 we had about, I would say, 20 people24 testifying in support of the bill.25 303 3/1/11 - PUBLIC HEALTH - BILL 0804741 Since the session ended in2 December, the new session has begun, and3 we are now looking to reintroduce that4 bill. The bill -- we did get a hearing5 towards the end of session. There were6 only a few days left of session, so the7 bill did not move after our hearing,8 although our conversations were quite9 positive and we did have some bipartisan10 support for the bill.11 So we are going to look at12 moving -- we are going to look at it for13 this session, but our efforts have been14 focused on Philadelphia. We're hoping to15 move it here and then we can use that16 momentum to pass it on to the state17 level. So that's the status.18
I just want to22 point out a disappointing fact with the23 Administration here at City Hall, that24 the security company that actually25 304 3/1/11 - PUBLIC HEALTH - BILL 0804741 contracted by City Hall to work on2 security, they don't even get paid sick3 time.4