Councilman’s proposal has a solid foundation in reasoning, now
it should be crafted and quantified before the assigned policy
workshop
The proposal recently put forth by Gilroy City Councilman Peter Arellano to consider whether city contractors pay livable wages and offer health insurance to their employees seems like a reasonable and fiscally sound approach which also gives a strong and appropriate nod to social justice.
The cost of uninsured patients ripples throughout our economy. It directly impacts the cost of medical care and health insurance premiums because insured patients subsidize the nearly 46 million people in the U.S. who lack coverage. That “black hole” of uninsured also impacts tax rates and the cost of goods.
Under the plan outlined by Arellano, the city would require that vendors disclose in their bids if they pay livable wages and offer health insurance to their employees. That information would be taken into account, along with the contract price, in determining whether or not the bid is awarded.
Perhaps that concept can be further defined along the lines of the current residential development ordinance point system (though not nearly as complicated), where points might be awarded to a vendor’s bid based on its price, on the wages it pays and on whether or not it offers its employees health insurance.
Or perhaps the lowest bidder who offers livable wages and health insurance would get the bid, as long as the bid was no more than a specific percentage higher than the lowest bid.
Either way, the city encourages vendors who offer livable wages and health insurance to its employees, while also accounting for the fiscal realities with which it must deal.
Arellano’s plan will be addressed in detail in a policy workshop scheduled for July 20. There’s plenty of time between now and then for Arellano to enlist help and craft a detailed proposal that addresses both the needs of workers and the city budget.
It’s a good idea and a small way for Gilroy to have a positive impact on a giant problem facing our country.
