100 local businesses are promising a living wage

The Orange County Living Wage initiative, a program encouraging business to compensate their employees fairly, has just certified its 100th employer — the Coastal Federal Credit Union in Carrboro.

The program encourages and promotes a living wage throughout the county and certifies businesses that pay their employees a living wage.

“We reached 100 living wage employers in just about a year and a half,” said Susan Romaine, chairperson of the initiative. “It really shows what a progressive business community we have here in Orange County.”

Effective Jan. 1, the initiative raised the living wage to $13.15 per hour, or $11.65 an hour for employers providing health insurance. The change reflects rising rent prices in Orange County.

“In order to come up with this living wage we use something called a universal living wage formula,” Romaine said. “It assumes that no worker should need to pay more than 30 percent of his or her income in rent.”

Joe Mecca, a spokesperson for Coastal Federal Credit Union, said the Credit Union had already committed to a living wage internally, and it was just a matter of getting certified.

“We, in October, began implementing a $12.50 per hour coastal minimum for all employees, so it just aligned with what we’re already doing,” Mecca said.

The credit union found that their highest turnover was among their lowest paid employees, particularly tellers, Mecca said. The higher wages help attract and retain employees.

“We want to make sure people don’t leave for financial reasons,” Mecca said. “We want to make sure they have opportunities to grow and take advantage of everything we have to offer from a career development standpoint.”

Paying a living wage not only helps in employee retention, but businesses who have joined the initiative also comment on higher productivity, better customer and employee relations, Romaine said.

As of last year, rent in Orange County has increased 3.1 percent, Romaine said, though the minimum wage of $7.25 in North Carolina has not.

“The Orange County Living Wage initiative has been incredibly successful. I think more successful than anyone thought it would be in such a short period of time,” said Carrboro Board of Aldermen member Damon Seils.

With the 100th business milestone passed, the initiative is considering what else they can do in the community to promote a living wage.

Romaine says they will continue to certify more businesses, posting short videos to social media featuring their certified employers and hosting more “buycotts,” which encourage the community to support businesses who are living wage certified.

“We live in a state where local governments like Carrboro, Chapel Hill and others don’t have the authority to require a minimum wage, so we rely on citizen-based initiatives like this one to make it happen,” Seils said.

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