Columbus at a Crossroads

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COLUMBUS AT A CROSSROADS
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EXECUTIVE SUMMARY
While other cities in Ohio were hit hard by the recent economic downturn, Columbus’s corporations were
largely unaffected; working families in our city were not so lucky. While Columbus’s unemployment rate
remains well below the national average at 6.2%, the poverty rate in our city has nearly doubled in the
past 10 years.
This is largely because low wage, no-benefit service jobs have begun to replace the good jobs of the past.
Of the 10 largest occupations in Ohio, 8 do not pay enough for an adult and a child to survive without welfare.
It didn’t used to be this way.
Poverty wage jobs like these hurt our whole city; they’re the reason the middle class is disappearing. When
working people can’t afford to pay their rents and mortgages, foreclosures ravage neighborhoods, crime
increases, and our communities deteriorate. Increased poverty also leads to high truancy rates and a decreased
property tax base, both of which have devastating effects on public school districts. This isn’t happening by
accident; profitable corporations that pay workers wages that qualify them for public assistance and don’t
pay their fair share in taxes are enriching themselves at the expense of our city and with our tax dollars.
Columbus can do better. Service workers are uniting to restore the middle class, bring good jobs to our city,
and raise wages for all working people. If business leaders in our city truly want to build a healthier, more
sustainable future for Columbus, they should start by paying their fair share in taxes and by ensuring that
working people—not just CEOs—share in the prosperity they helped create. In this moment, the leaders of
Columbus’s business community have the opportunity to decide which direction our city will go.
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TABLE OF CONTENTS
Executive Summary
Prosperity for the Few
Rising Poverty
Making Ends Meet in the
Low-Wage Workforce
Invisible Labor
First Responders Living in Poverty
Profiting at our expense
Rising Inequality
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6
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Columbus at a Crossroads:
What Kind of City Will We Be?
Endnotes
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PROSPERITY FOR THE FEW
Columbus’s economy remains largely unaffected by the Great Recession. While other cities in Ohio, like
Cleveland and Cincinnati, were hit hard and are still feeling the effects of the downturn, Columbus has been
hailed as the #1 “up & coming” high-tech city by Forbes.1 But it wouldn’t be entirely accurate to say that the
city is prospering. While business booms and the unemployment rate in Columbus continues to drop, the
number of working people in our city living in poverty is rising,2 as is reliance on public assistance programs
like food stamps.3 Columbus can’t be a world class city if its residents are working hard but increasingly poor;
and we can’t attract new businesses if working people have no buying power.
It’s a privileged and wealthy few who are reaping the benefits of Columbus’s sustained economic growth.
The Fortune 1000 companies headquartered in the Columbus area profited over $5 billion in 2012, while their
CEOs took home over $133 million in compensation. JPMorgan Chase, the largest private employer4 in the
Columbus area, profited over $21.1 billion dollars last year.5
This should be good news for everyone in Columbus. But unfortunately, poverty in our city has risen right
alongside soaring corporate profits and CEO pay. In fact, the concentrated poverty rate in Columbus has
nearly doubled since 2000.
COLUMBUS AREA FORTUNE 1000 COMPANIES6
CEO
CEO BASIC
COMPENSATION 20127
Abercrombie & Fitch
Michael Jeffries
$48,069,500
American Electric Power
Michael Morris
$9,186,910
Steven Fishman
$11,924,700
Steven Davis
$3,634,210
Cardinal Health
George Barrett
$11,209,700
Greif
Michael Gasser
$4,421,540
Momentive Specialty Chemicals
Craig Morrison
Not public
Stephen Steinour
$6,445,710
Limited Brands
Leslie Wexner
$19,230,500
Mettler-Toledo International
Olivier A. Filliol
$5,379,640
Steve Rasmussen
Not public
Daniel W. Avramovich $1,842,920
Jay L. Schottenstein
$2,205,040
Scotts Miracle-Gro Co.
James Hagedorn
$5,484,410
Worthington Industries
John P. McConnell
$3,974,710
FORTUNE 1000 COMPANIES
Big Lots
Bob Evans Farms
Huntington Bancshares
Nationwide
Pacer International
Retail Ventures (Merged with DSW in 2011)
Total
$133,009,490
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COLUMBUS AREA FORTUNE 1000 PROFITS8
COMPANY
PROFIT
Cardinal Health
$1,069,000,000
American Electric Power
$1,395,000,000
Limited Brands
$850,000,000
Big Lots
$207,064,000
Momentive Specialty Chemicals
$118,000,000
Huntington Bancshares
$641,022,000
Scotts Miracle-Gro Co.
$106,500,000
Abercrombie & Fitch
$127,658,000
Greif
$126,100,000
Worthington Industries
$125,353,000
Retail Ventures (Merged with DSW in 2011)
$174,788,000
Bob Evans Farms
$72,850,000
Mettler-Toledo International
$290,847,000
Pacer International
$4,300,000
Total
$5,308,482,000
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RISING POVERTY
The rising inequality facing working people in Columbus mirrors a national trend marked by record profits and
stagnating wages. All across the country, the rich are getting richer while more families are falling out of the
middle class and into poverty every day.
A report released in April 2013 by the Brookings Metropolitan Policy Program reveals that the number of
extremely poor census tracts in the city of Columbus increased from 8 to 24 in the past 10 years.9 The report
states that the number and population of extremely poor neighborhoods—those with poverty rates of 40
percent or higher—has jumped since 2000, with the population in those neighborhoods rising by one-third.10
MAKING ENDS MEET
IN THE LOW WAGE
WORKFORCE
Columbus service workers—like janitors, security officers,
airport staff, and higher education food service workers—
are among the thousands of working people in our city who
can work full time and still qualify for public assistance. In an
economy as healthy as Columbus’s, there is no excuse for this.
When working people aren’t paid enough to stay in their
homes or buy medicine, entire communities suffer the
consequences. And it probably goes without saying that
workers who can’t afford basic necessities also do not have
disposable income to spend at Columbus businesses and
restaurants.
INVISIBLE LABOR
After most white collar workers have gone home for the day,
Columbus janitors begin their nightly work of vacuuming our
floors, emptying our trash, and sanitizing our bathrooms.
They clean downtown office buildings, including the offices
of corporate and financial giants like JP Morgan Chase,
Huntington Bank, Nationwide Insurance, and American
Electric Power.
But in spite of the health of Columbus’s economy and the
wealth of these corporations, the average full time janitor in
our city is paid just $18,200 a year—below the poverty level
for a family and well below the cost of living.
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COLUMBUS COST OF LIVING AND JANITORIAL WAGES
$49,102.54
$18,200
Estimated Cost of Basic Family
Necessities—One Parent, Two Children
(Columbus MSA)
Full Time Columbus Janitor
Yearly Gross Earnings
Veronica Ramos-Lopez works from 5:30pm until 2am every night cleaning bathroom
after bathroom for a company called Mid American Cleaning Contractors (MACC) in
Chase Bank’s Polaris offices. Chase Bank is one of the richest and most influential
corporations in the world, yet MACC pays Veronica less than $19,000 a year. Veronica
and her children live with some of her coworkers in order to afford housing. Her eightyear-old daughter qualifies for Medicaid and her nineteen-year-old son works in a
factory nearby because the family can’t afford for him to go to college. Veronica’s
rent and bills take up about half of her paycheck, leaving little for groceries and
clothing for her kids. Her daughter wants to go to college someday, and Veronica
is afraid that this dream may be out of reach—no matter how hard she works.
FIRST RESPONDERS LIVING IN POVERTY
Contracted private security officers protect our office buildings and our city’s public infrastructure. Security
officers put themselves on the line to protect millions of dollars worth of property and hundreds of thousands
of lives in Columbus every day.
Despite their hard work and the wealth of this growing industry, Columbus security officers are paid less than
$19,000 a year—below the poverty level for a family—and most have no access to affordable health care. Many
are forced to rely on public assistance programs like Medicaid, SNAP, and HEAP to get by, despite working full
time. These aren’t the good, middle class jobs our city needs.
Thurman Elliot is a security officer in Columbus. He works for a company
called Universal Security. Thurman and his coworkers don’t get any sick
days and they can’t take vacation days because of understaffing. This
means that Thurman has to choose between having time to spend
with his wife and having the money he needs to pay for her treatment.
Thurman’s wife suffers from a condition that attacks her immune
system and makes her more likely to get sick. Because he doesn’t
have affordable health care for himself or his wife through his job,
they both rely on Medicare.
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PROFITING AT TAXPAYERS’ EXPENSE
“Ultimately, we as a
community bear the
expense through higher
health care costs, increases
in crime, and the depletion
of our social services.”
—Columbus City Council
Statement in support of
Janitors, February 11, 2013
Columbus’s wealthiest companies didn’t succeed on their own;
they received tens of millions of our tax dollars in the form of
subsidies, all while contributing to rising poverty and increased
strain on taxpayer-funded public assistance programs.
Together, Columbus-area companies Huntington, Nationwide,
and JPMorgan Chase have received an estimated $50,039,147
in state and local tax breaks.
WHAT ELSE COULD $50,039,147 COVER?
• Approximately 1,221 first year Columbus public school
teachers15
• A full year of school lunches for approximately 90,739
Columbus public school students16
Nationwide
• Took $33,990,943 in state and
local tax breaks since 2008.
JP Morgan Chase
• Took $25 billion bailout from
the federal government.11
• Took $15,409,681 in state and
local tax breaks just the past
few years.
• CEO Jamie Dimon made
$23,105,400 in 2011—the
equivalent of 1,270 of the
janitors who keep Chase
buildings clean.12
Huntington
• Annual wages for approximately 2,749 full time
janitors
• Annual wages for approximately 2,633 full time
security officers
• The entire 2014 budget shortfall for the Columbus
City Schools—twice17
As if padding their profits with our tax dollars wasn’t shameful
enough, Columbus’s wealthiest corporations are fueling
poverty in our communities by contributing to the rise of lowwage no-benefit jobs. When janitorial and security contractors
hired by these corporations fail to pay employees a living
wage and offer only unaffordable health care options, we
all pay. The estimated cost for providing health care for the
uninsured in Franklin County is $162M a year; by forcing hardworking people onto our already over-burdened public safety
net programs, irresponsible companies are essentially asking
Ohio taxpayers to further subsidize their profits.18
• Took over $638,523 in state
and local tax breaks.
• Profited over $542.6 million in
2011, an increase of 74% from
the previous year.13
• CEO Stephen Steinour made
$6,445,710 in basic
compensation in 2011.14
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WHAT PUBLIC ASSISTANCE PROGRAMS DO COLUMBUS JANITORS,
SECURITY OFFICERS, AND THEIR FAMILIES QUALIFY FOR?
Single Person
One Parent
with a Child
One Parent
with Two Children
HEAP (Home Energy Assistance Plan)19
X
X
X
Children’s Medicaid (Ohio Healthy Start)20
X
X
X
Reduced School Lunches
N/A
X
X
Free School Lunches
N/A
X
X
X
X
X
O
X
X
Ohio Head Start (Child care program)
O
X
X
Section 8 (Subsidized Housing)
X
X
X
Program
21
22
WIC (Women, Infants, and Children)23
SNAP (Food Stamps)24
25
26
(X=qualifies based on income guidelines; 0=does not qualify based on income guidelines)
RISING INEQUALITY
Increasing wealth disparity and the proliferation of poverty-wage jobs are driving inequality in our city.
Columbus ranks among the most economically segregated cities in America. According to a 2012 Pew
Research Center report, Columbus ranked 7th most segregated by income, just below Detroit. About 34%
of lower-income households in the Columbus area live in majority lower-income census tracts.27
Because the vast majority of workers consigned to poverty-wage, no-benefit jobs are people of color, the
poverty rates for these groups are disproportionately high; while the overall poverty rate for the Columbus area
is 15.7%, the rates are significantly higher for Latinos—at 27.2%—and African Americans—32.1%.28 And as racial
income disparity in our city rises, African American and Latino workers are disproportionately relegated to
low-income and under-resourced neighborhoods. As a result, Columbus is becoming increasingly segregated
by race and class.
POVERTY RATES, 2011 COLUMBUS METRO AREA
32.1%
11.6%
11.2%
Asian
White
Black
27.2%
Hispanic or Latino
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COLUMBUS AT A CROSSROADS:
WHAT KIND OF CITY WILL WE BE?
Despite the health and wealth of corporations in Columbus, poverty in our city is skyrocketing and our
neighborhoods are becoming increasingly poor, dangerous, and segregated. If Columbus continues down
the current path, it will truly become 2 cities—one where corporations profit at the expense of all else, and
one where the children of working people go to bed hungry and without hope for a better future.
Columbus can do better; this rising tide could lift all boats. Our city’s business and elected leadership have the
ability and responsibility to truly move Columbus forward and to ensure that everyone who works hard has the
opportunity to prosper. Columbus workers, taxpayers, and families are calling on businesses to do their part by
paying their fair share in taxes and paying fair wages to workers. A strong economy should mean good jobs
and a better future for everyone in our city—not just for the rich.
When working people are able to support themselves on one good job, families are able to stay in their homes
and spend their paychecks at local businesses. And that’s what will truly make Columbus’s economy stronger,
its neighborhoods safer, and its communities healthier. Together, we can create a prosperous and sustainable
future for Columbus.
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ENDNOTES
1. City of Columbus, Department of Economic Development, http://econdev.columbus.gov/facts_figures/rankings.aspx
2. Columbus Dispatch, Number of families struggling continues to grow, January 30,2013
www.dispatch.com/content/stories/local/2013/01/30/new-poverty.html
3. Columbus Dispatch, Food stamp secrecy, April 22, 2013 http://www.dispatch.com/content/stories/editorials/2013/04/22/food-stampsecrecy.html
4. JPMorgan Chase Chase to add up to 1,000 jobs in Central Ohio, April 27, 2011
http://investor.shareholder.com/jpmorganchase/releasedetail.cfm?releaseid=572534
5. JPMorgan Chase SEC 10K Filing Fiscal Year End 2012 www.sec.gov/cgibin/viewer?action=view&cik=19617&accession_number=0000019617-13-000221&xbrl_type=v#
6. Columbus Regional Chamber, Fortune 1000 Companies, http://columbusregion.com/files/documents/fortune1000-companies.pdf
7. CEO Basic Compensation from Reuters.com Executive Profiles
8 Profits from company’s last full fiscal year SEC 10-K Filing. Full year 2011 or Full year 2012 depending on full fiscal year most recently filed.
9. Columbus Dispatch, Poverty’s grip grows in Central Ohio, November 3, 2011
www.dispatch.com/content/stories/local/2011/11/03/povertys-grip-grows.html
10. Columbus Dispatch, Poverty’s grip grows in Central Ohio, November 3, 2011
www.dispatch.com/content/stories/local/2011/11/03/povertys-grip-grows.html
11. Huffington Post, JPMorgan Bailout Repayment Completed with $936 million Sale of Warrants
www.huffingtonpost.com/2009/12/11/jpmorgan-bailout-repaymen_n_389345.html
12. 2012 not yet publicly released
13. SEC 10-K Filing. 2012 year profits not yet released.
14. 2012 Compensation not yet public.
15. Columbus Public Schools, Columbus first year teacher salary $40,990 salary and benefits
http://columbuspublicschools.org/modules/groups/homepagefiles/cms/1307635/File/district/Master_%20Agreement_%202011_12.pdf
16. US Dept of Agriculture, School Lunch Program Payments http://www.fns.usda.gov/cnd/Governance/notices/naps/NAPs12-13Chart.pdf
17. Columbus Dispatch, Jobs, busing may feel ax as Columbus Schools face $25 million shortfall, March 6, 2013
www.dispatch.com/content/stories/local/2013/03/06/columbus-schools-may-cut-jobs-busing.html
18. Health Policy Institute of Ohio, Ohio Medicaid Program Basics,
http://a5e8c023c8899218225edfa4b02e4d9734e01a28.gripelements.com/pdf/publications/basics2011_execsummary.pdf
19. Office of Ohio’s Consumers’ Council, 2013 HEAP Guidelines,
http://pickocc.org/publications/assistance_programs/HEAP_Guidelines.pdf
20. Ohio Dept Job and Family Services, Ohio Medicaid Eligibility Guidelines, http://jfs.ohio.gov/ohp/consumers/docs/FPLs_general.pdf
21. US Dept of Agriculture, Federal Registrar, www.gpo.gov/fdsys/pkg/FR-2012-03-23/pdf/2012-7036.pdf
22. US Dept of Agriculture, Federal Registrar www.gpo.gov/fdsys/pkg/FR-2012-03-23/pdf/2012-7036.pdf
23. USDA Food and Nutrition Service, WIC Guidelines www.fns.usda.gov/wic/howtoapply/incomeguidelines.htm
24. USDA Good and Nutrition Service, SNAP Guidelines www.fns.usda.gov/snap/applicant_recipients/eligibility.htm#income
25. Ohio Head Start, Benefits.gov www.benefits.gov/benefits/benefit-details/1932
26. US Dept Housing and Urban Development, Income Guidelines. Qualify at “Very Low Income” Threshold
www.huduser.org/portal/datasets/il/il12/oh.pdf
27. Columbus Dispatch, Report: Neighborhoods segregated by income,
www.dispatch.com/content/stories/local/2012/08/01/economically-segregated-neighborhoods.html
28. US Census Bureau, American Community Survey, Poverty Rate in the Past 12 Months www.census.gov
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WHO ARE WE?
SEIU Local 1 unites more than 50,000 service workers
in 10 cities across the Midwest. This year, Local 1 janitors
are bargaining union contracts in Columbus, Cincinnati,
Indianapolis, and Milwaukee and hundreds more janitors
are organizing to join Local 1 to secure fair wages and
affordable health care. The security officers who protect
many of the same downtown buildings that Local 1
janitors clean in Detroit, Indianapolis, Cincinnati, and
Columbus are uniting in SEIU Local 1 for the first time
to create a path toward good jobs and safer buildings.
SEIU Local 1 members are committed to:
• Advocating for the quality services the public
deserves and the good jobs our communities need;
• Using our collective strength to hold politicians
accountable to working families;
• Building an economy that works for all of us—not
just the richest 1%.
SEIU Local 1
¨
D PRINTIN
G
UNION
LABEL COUNCIL
LIE
AL
TRADES
CHICA O, IL
G
458
33 N. 3rd Street, Suite 300, Columbus, OH 43215
www.seiu1.org
facebook.com/SEIULocal1
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