On the steps of the Rotunda on Saturday, about 50 protesters gathered to demand the University pay subcontracted workers a "living wage." This is an issue the Board of Visitors may address at its next meeting.
The commonly accepted definition of a living wage is the salary needed to bring a family of four up to the poverty line. Based on 2001 federal poverty guidelines, Charlottesville's living wage is $8.65 an hour.
In 2000, the University increased pay for its employees to the living wage level, but did not do so for workers who are subcontracted from private companies such as Aramark, Morrisons, Pitney Bowes and ServiceMaster.
"At this point we've taken the position that we don't tell our contractors what to pay their employees," said Colette Sheehy, vice president of management and budget.
Whether the Board plans to address the living wage issue at its next meeting, which runs May 31 to June 1, remains unclear.
Protesters announced at the rally the Board would hear the issue, and The Daily Progress reported yesterday that Board member Terence Ross said the living wage would be on the agenda.
However, Board Secretary Alexander "Sandy" Gilliam said he was "mystified" by Ross' statement.
"No one has asked that it be on the agenda," Gilliam said of the living wage.
Speakers at the rally said a living wage would not only benefit workers, but also businesses and the University.
"We believe that no one working full-time should live in poverty," said Audrey Oliver, a speaker at the protest.
Workers who are paid a living wage are likely to stay at the same job for a longer period of time, and thus cut recruitment and training expenses for businesses, Oliver said.
"If workers are paid more, they perform better at their jobs," she added.
However, Economics Prof. William Johnson said businesses would not pay their employees less than is in their best interest.
Sheehy said she did not know how businesses that contract with the University would react if the University mandated that they pay their workers a living wage.
"To base wages on a standard of living sets a dangerous precedent," Johnson said. "Wages should be based on the value of the worker."
However, Johnson said the University may be underpaying its workers because of a phenomenon known as "monopsony."
In monopsony, a single employer produces a large portion of a community's jobs and thus the employer has a dominant role in fixing wages, Johnson said.
The University "is a very large employer in Charlottesville," he said. "When there is monopsony power, wages can be too low."
At the rally, Charlottesville City Councilman Kevin Lynch said paying living wages could help reduce government spending.
"Workers that are paid a living wage don't need to be subsidized by someone else," Lynch said.
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