- April 25, 2024
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First GREEN Bank institutes living wage policy.
The United Way of Volusia-Flagler Counties released a report Nov. 11 that stated
47% of Volusia and 42% of Flagler households struggle to afford the basics. This is a combination of those living in poverty and the 68,000 who live under guidelines of what it calls ALICE (Asset Limited, Income Constrained, Employed). ALICE households earn more than the official U.S. poverty level, but less than the basic cost of living.
This means there are 107,000 households in the two counties unable to afford the state’s cost of living, with conditions still lagging behind pre-recession levels.
The report was compiled by Rutgers University and was commissioned by United Way agencies in six states.
“We all know ALICE,” said United Way President Ray Salazar. “ALICE is the recent college graduate unable to afford to live on his or her own, the young family strapped by child care costs and the mid-career professional now underemployed. These folks are vital to our state’s future economic well-being, and they face barriers beyond their control frustrating their ability to become financially stable.”
The report contains a Household Survival Budget, or how much would be needed for the basic necessities of living. For a four-person family living in Florida, the survival budget is $47,484, an increase of 14% from the start of the Great Recession in 2007. This translates to an hourly wage of $23.74, or $11.87 per hour each, if two parents work.
The annual Household Survival Budget for a single adult is $18,624, an increase of 12% since 2007. The single-adult budget translates to an hourly wage of $9.32.
Florida became less affordable from 2007 to 2012. Despite the Great Recession the cost of basic housing, child care, transportation, food and healthcare increased by 13%.
The ALICE Report was funded by grants from AT&T, Atlantic Health System, Deloitte, FamilyWize, Novartis, Post Foods, and The UPS Foundation.
For more information, visit unitedwayvfc.org.
Bank starts living wage program
First GREEN Bank implemented a Living Wage Program as of Oct. 1, providing all fulltime employees with a minimum $30,000 yearly salary. Part-time employees received a comparable increase.
Green Bank is headquartered in Mount Dora and has a branch at 175 W. Granada Blvd., Ormond Beach.
“The current minimum wage debate is continuing to heat up, and needs to be addressed,” said Ken LaRoe, CEO and founder of First GREEN Bank. “We want to show organizations that it is possible to provide both hourly and salary employees with a sustainable income.”
Christina Heflin, spokeswoman for First GREEN Bank, said the bank decided to make the wage 50% more than the approximate $10 suggested by a study by the Massachusetts Institute of Technology. The school calculated living wages to meet minimum standards of living. For Volusia County, the school says the living wage is $9.20 per hour for one adult, and $20.04 for an adult with one child. The minimum wage by law is currently $7.25 per hour.
LaRoe said out of 68 employees at all the bank branches, 12 are getting raises.
Gary Ayers works part-time as a courier at the Ormond Beach branch, and was bumped up $1 an hour. At age 74, he’s on a fixed income and said it makes all the difference in the world.
“It means my wife and I can pay some bills or got out to eat or to a movie,” he said.
Many businesses, such as restaurants, have said that increasing the minimum wage would force them to lay off employees or go out of business. LaRoe said he also owns a pizza restaurant and is looking at instituting a living wage there.
“I think it could be done,” he said. “The industry is stuck in a rut. Change the way you do things. Bump up the price and don’t accept tips. It’s un-American to make a profit at the expense of workers. People should be able to stay alive. ”
He said a well-run restaurant should be able to cover labor cost.
He said he expects higher wages to attract a “bigger pool of quality talent” to his businesses.
He also said, however, that a small mom and pop type business might not be able to increase wages for employees.
First GREEN Bank, which opened in 2009, was designed to promote positive environmental and social responsibility while providing for increased profits for investors and clients, according to a company statement.
Laroe said he has always been a “rabid capitalist and a rabid environmentalist.”
“You don’t have to be schizophrenic. They are complementary,” he said.
Visit firstgreenbank.com
