State Assembly Passes Minimum Wage Hike; Phone In to Senator Bruno

THe State Assembly yesterday passed legislation raising the minimum wage to $7.10 an hour. Passage is more uncertain in the Republican-controlled State Senate. Hunger Action is organizing a phone in to Senator Bruno (518 455-3191)

The State Assembly passed the minimum wage bill today by a 127 - 19 vote after about 45 minutes of debate. The bill would raise the state minimum wage from $5.15 to $7.10 in three stages.

It is a good sign that most Republicans voted in favor of it. There were a four or five speakers against the bill on the floor, raising the typical arguments - impact on jobs, teenagers, farmers, small businesses, small towns.

At least one Democrat voted against it - Robin Schminger from Erie, also head of the Assembly Economic Development committee (one reason why corporate accountability legislation is killed each year)

The bill faces an uphill struggle in the State Senate. Two years ago the Senate Majority Leader, Joe Bruno of Brunswick, had apparently agreed to a minimum wage hike but backed off when Governor Pataki opposed it. This year Bruno has agreed with the need to raise the minimum wage but has said that the federal government should act instead.

The minimum wage is being heavily opposed by the Farm Bureau and the lobbying groups for small business. National chains like Walmart have also worked against the minimum wage.

The AFL-CIO, Working Families Party, Hunger Action Network, Empire State Economic Security Campaign, FPI and others are working to raise the state minimum wage.

Hunger Action Network is organizing a phone in to Senator Bruno (518 455-3191). More details below

--------------------

MINIMUM WAGE AS A LIVING WAGE

The Problem: The current federal minimum wage of $5.15 an hour falls far short of the goal of allowing full-time workers to achieve a modest standard of living. Traditionally, the minimum wage provided enough income to at least bring a family of three to the Federal Poverty Level. Today, a full-time worker at the federal minimum wage of $5.15 per hour earns $10,712 per year or $4,558 less than the federal poverty level for a family of three. Families trying to survive on this meager amount are forced to make choices such as skipping meals, using substandard child care or having the electricity or heat turned off. These choices ultimately affect their ability to find and maintain employment.

A fair minimum wage helps workers maintain a satisfactory standard of living, reduces income inequality, and enhances work incentives. But the minimum wage has fallen sharply over the past 30 years relative to the cost of living. On July 1, 1970, New York increased its state minimum wage from $1.60 per hour to $1.85 per hour. Based on the increases in the cost of living since that time, New York State would have to increase its minimum wage to $8.83 per hour effective January 1, 2004 for someone then working at the minimum wage to have the same purchasing power as someone who was working at the $1.85 per hour minimum wage 33 1/2 years ago.

Of all the high wage states, New York has the lowest minimum wage relative to average wages. By increasing its minimum wage, New York would join a growing list of states where voters and political leaders have chosen to take control over wage policy rather than wait for Congress to act at the federal level. There are now a dozen states with a minimum above the inadequate federal level of $5.15, including our neighbors Vermont ($6.75), Massachusetts ($6.75), and Connecticut ($7.10). Washington State and Oregon have taken the sensible step of indexing their state minimums to the consumer price index.

Each year opponents trot out the same tired complaints that a higher wage floor will causes more unemployment, hurting the very people we are trying the help. The best evidence shows that past increases in minimum wages, at the federal or state level, mainly did what they were supposed to do, raising income for working families at the bottom while causing very little, if any, employment loss. In its 1999 Economic Report of the President, the Council of Economic Advisors remarked that “the weight of the evidence suggests that modest increases in the minimum wage have had very little or no effect on employment.”

Data compiled from the Economic Policy Institute shows that in 2002, more than a million New York workers would benefit from an increase in the minimum wage. Contrary to a popular misconception, teenagers working part-time, after-school jobs would not be the primary beneficiaries of an increase in the minimum wage. Eighty percent of the legislation’s beneficiaries would be adults not teenagers. Moreover, more than 80% of those who stand to benefit work more than 20 hours per week and more than half of the beneficiaries work full time.

Sixty percent of the New York workers who would benefit from an increase in the minimum wage are women. A minimum wage increase would particularly help women trying to move from welfare to work, most of who are still in poverty after finding employment.

ES2 Policy: Work should pay enough to provide a family with a decent standard of living.

The 2004 Session:

! New York should raise its minimum wage to a living wage. The state minimum wage should be immediately increased to at least $8.80 an hour, the equivalent of the purchasing power of the state's minimum wage on July 1, 1970. Automatic annual inflation adjustments should be established to prevent erosion of the purchasing power of the new minimum.

-------------------

Speak Up About Raising the Minimum Wage

Wednesday March 3rd-Statewide Call-in Day

The current federal minimum wage of $5.15 an hour falls far short of the goal of allowing full-time workers to achieve a modest standard of living. Families trying to survive on this meager amount are forced to make choices such as skipping meals, using substandard child care, going without electricity or heat, and living in overcrowded, unsafe conditions.

The New York State Legislature should support hard-working New Yorkers, including farm workers, by increasing the minimum wage to $7.10. While the proposed increase in the minimum wage would still leave many workers struggling to make ends meet, it would be a step in the right direction.

Call on Wednesday to Make YOUR Voice Heard and Spread the Word!

Our Message: Work should pay enough to provide a family with a decent standard of living. Raise New York’s Minimum Wage to $7.10/hour - Support Assembly bill 9710 and Senate bill 3291A!

Our Lawmakers Need to Hear from YOU!

Governor Pataki (518) 474-8390

Senate Majority Leader Bruno (518) 455-3191

Assembly Speaker Silver (518) 455-3791

Senate Labor Chair Velella (518) 455-3264

Assembly Labor Chair John (518) 455-4527

Top 8 Arguments for Raising the Minimum Wage

1. Work should pay enough to provide a family with a decent standard of living

2. A full-time worker at the federal minimum wage earns $10,712 per year, $4,958 less than the federal poverty level for a family of three

3. More than a million New York workers would benefit from an increase in the minimum wage, according to the Economic Policy Institute

4. Of all the high wage states, New York has the lowest minimum wage relative to average wages

5. Eighty percent of the legislation’s beneficiaries would be adults not teenagers

6. “The weight of the evidence suggests that modest increases in the minimum wage have had very little or no effect on employment,” according to the Council of Economic Advisors

7. A minimum wage increase would particularly help women trying to move from welfare to work, most of whom still live in poverty after finding employment

8. Raising the minimum wage will put thousands of dollars into the local economy by putting more money into the pockets of those most likely to spend a given dollar in the local economy