Posted on 02/18/2006 1:49:47 PM PST by calcowgirl
SACRAMENTO - California's poorest workers will likely receive a pay boost as early as this summer and again next year -- the first increases to the minimum wage since 2002.
But whether successive raises will follow remains the source of contention between business interests, politicians and labor advocates who are poring over the fine print contained in four separate measures to raise the minimum wage this legislative session.
Three proposed ballot initiatives are also making the rounds.
Democrats and labor groups want to raise the state's hourly minimum above the current $6.75 and, though Republicans and business owners have generally opposed the effort, it seems to be just a matter of time because Gov. Arnold Schwarzenegger is pushing for it.
Schwarzenegger twice vetoed minimum wage legislation. And he campaigned for office in 2003 pledging to keep companies from fleeing the state because of the rising cost of doing business here. But in his State of the State address last month -- touching on themes he'll stick with in his re-election bid -- the governor proposed a $1 increase.
"Well, the economy has bounced back," Schwarzenegger said in his speech, adding, "it is now time for those who often work the hardest and earn the least to benefit from California's growth."
Legislation reflecting the governor's proposal being carried by Sen. Abel Maldonado, R-San Luis Obispo, would increase the minimum wage by 50 cents, to $7.25, beginning Sept. 1, 2006,and to $7.75 on July 1, 2007.
No other raises would be implemented through his measure, SB1167, which could help make the bill more palatable for business interests.
A Democratic bill introduced by Assemblywoman Sally Lieber of San Jose, AB1835, would raise the low-end wage to $7.25 on July 1, 2007 and $7.75 a year later -- and would automatically adjust for inflation every year beginning in 2009, a procedure known as indexing.
"My constituents in Silicon Valley, like people throughout California, feel that it's a moral issue," Lieber said. "We're just keeping pace with poverty."
Maldonado, however, argues that indexing amounts to "auto spending" of an unknown quantity. "Indexing is what's gotten my state in trouble," he said. "It would hurt the economy."
The conservative California Republican Assembly is vehemently against any increase, and has aired radio commercials in the Bay Area and along the Central Coast urging listeners to call Maldonado's office to oppose the bills.
"The governor has abandoned any notion that he's a fiscal conservative," said Mike Spence, who will support resolutions at the state GOP convention next week that oppose Schwarzenegger's proposal.
California's minimum wage is lower than the minimum wage in Alaska, Washington and Oregon; Washington and Oregon adjust wages through indexing without legislation.
The federal minimum wage has remained at $5.15 since 1997.
According to the California Budget Project, a non-partisan organization that analyzes state policy issues, about 1.4 million workers earn at or near the minimum wage.
A minimum wage worker makes $1,170 a month before taxes -- about the cost of some one-bedroom apartments in Silicon Valley.
Business groups that for years have advocated against minimum wage increases were thrown off by Schwarzenegger's change of stance.
"I would love for the governor to sit down and talk to us" about an increase and "the reverse effect it has in our industry," said Jordan Traverso with the California Restaurant Association, which speaks for businesses that employ 1.3 million people.
Traverso said that many restaurant servers, for example, are paid minimum wage because it's understood the bulk of their pay is in tips. But if restaurants were forced to pay them more in base wages, that would be money taken away from other restaurant workers who make only slightly more than minimum wage.
The California Attractions & Parks Association also opposes the bills.
"Many of these workers are teenagers and are in entry level jobs," said John Robinson, the organization's chief executive.
"Periodically, the minimum wage does have to increase, it's not that we're dead set against that. "But what we're concerned about is poorly thought out bills that just keep increasing cost and eventually that's going to drive people out of business."
Officials with the state's powerful labor-union umbrella, which consistently advocates for a higher minimum wage, aren't surprised by Schwarzenegger's turn.
"Because it's an election year the governor is under more pressure to support bills for working people rather than just corporations; that's what he's done the previous two years," said Art Pulaski, executive secretary-treasurer of the California Labor Federation.
In addition to the four legislative bills, three measures are in the process of qualifying for an upcoming ballot.
One of the measures would raise the wage up to $7.75 in 2008, and adjusted after that. Another calls for increases up to $8.75 by 2009, and then indexing for later years. Both measures are proposed by San Francisco Green Party activist Barry Hermanson who acknowledges he probably won't gather enough signatures to place either measure on the ballot.
Another measure proposed by lawyer Thomas Hiltachk would raise the minimum wage to $7.25 an hour, then $7.75 an hour, but also amend the state overtime rules that would benefit employers.
If the state wasn't flooded with illegal aliens I suspect there would be no artificial oversupply of labor. And therefore they would not have to force a new minimum.
The law of supply and demand would take care of it naturally.
Who can live on less than $20.00 an hour?
The new minum wage should be at least $21.00/hour.
Or maybe $25.00/hour.
/s
Each minimum wage worker will go out and acquire marketable job skills that are valued by employers. Then they will compete for wages in a free market economy. It's a revolutionary (for liberals) idea.
Here in NY, the Pols were arguing over whether or not to raise the minimum wage from $5.80 to $6.15. Meanwhile, the local gas stations near me were offering $8 because they were having trouble finding help for less. The free market had pushed the practical minimum wage higher than the legal minimum wage.
A business owner should have the right to say "I have lots of jobs at $5 an hour, and NO jobs at $6 an hour. If the workers don't like it, they can either not accept the job, or quit.
And for reference, I have worked 60 hours a week shoveling horse manure for farm wages (which are lower than minimum.) I quit that job for one that paid better. My new boss said "I'll start you at $5" (better than minimum at the time.) "If youre not worth $5 an hour to me, I'll fire you."
I'm not some elitist snob saying this.
If politicians keep messing with the minimum wage pretty soon there will be no entry level jobs. Also it will encourage other-wised strapped businesses to either shut down, move, or hire illegals to survive. >>>>>>>>>>>>>
I don't believe in the basic concept of the minimum wage but if there is going to be one then today's level is absurdly low. In terms of buying power it was much higher the year I turned 19, even using the accepted figures it would have to be raised to around $8.00 an hour now to equal what it was then and I think that figure is significantly understated. The current minimum is merely an excuse to pay low wages, the whole concept should be scrapped.
One good way would be to atach an antiinflation ammendment making union wage inctreases that flow automatically from the minimum wage increase 100% taxable and not subject to any other deductions or credits or existing tax breaks.
If you find yourself at the age of 40 working for a minimum wage then chance are you made some pretty poor life decisions, odd are you deserved that fate.
If an employer can keep his workers at minimum wage for a long period of time without a high turnover rate then I have no respect for his employees.
I don't believe in minimum wages, if they are not making enough flipping burger then learn how to be a Sys-admin, Aircraft Mechanic...etc. I believe the greatest cause of failure in our lives is ourselves.
You're just some kind of ultra-extreme-radical-conservative-bigoted-intolerant-uncaring-thoughtless-elitist-hatefilled-CAPITALIST, aren't you?
No other raises would be implemented through his measure, SB1167, which could help make the bill more palatable for business interests.
A Democratic bill introduced by Assemblywoman Sally Lieber of San Jose, AB1835, would raise the low-end wage to $7.25 on July 1, 2007 and $7.75 a year later -- and would automatically adjust for inflation every year beginning in 2009, a procedure known as indexing. "
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The Dem version would guarantee min wage increases in perpetuity without any further bills. In the R. version there is a $1 increase, but that's it. For another increase they would have to pass another bill. While I object to any increase of min. wage, if they have to do it, this is far better, than to pass one bill, which then would forever continue the increase.
The neat part is that we don't have to approve either. Just vote no on both.
Or will a NO vote on both really be a YES vote on AB1835? Please Duf, O Great One, enlighten us poor, dumb conservatives.
Why not raise the minimum wage to $20 per hour? All it would do is create more unemployment (like in France).
$20/hr dollars would be great. I'm tired of fast food and box box stores anyway. The savings are ruining my budget forecasts and leaving me with way too much time to play on FR.
If you try harder, I think you can fit "phobic" in there somewhere. ;-)
Don't give them any ideas!
Gee thanks, FO. Your justification mimicks the hopeless GOP "Yes on 78" campaign logic promoting socialized-medicine-lite.
Maldonado's energy would be better spent supporting Republican ideals and educating the electorate as to the overall destructive implications of minimum wage than to be proposing his socialist-lite legislation.
Did you notice this part? Hiltachk is Arnold's Santa Monica attorney.
No, FO didn't mention that in the promotion of Maldonado's referendum attempt.
Besides, there are just to many members of the gang competing for the limelight. Maybe its driven by the same sort of incentives used in the Kennedy hire? First member to qualify a minimum wage initiative or referendum for the ballot gets to keep the next big donation the gang snags.
Now who is gonna clean up my keyboard?
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