Broad coalition wins increase in minimum wage

From citizens speaking out at community meetings to groups rallying at the state Capitol, a broad coalition won a minimum wage increase for thousands of Minnesota workers.

Gov. Tim Pawlenty has announced he will sign legislation, passed by the Minnesota House and Senate this week, to raise the minimum wage from $5.15 an hour to $6.15 an hour on Aug. 1.

In January, the Senate passed a bill raising the wage to $7 an hour, but decided this week to concur with the House’s version of the increase. It is the first minimum wage increase since 1997.

The action is “a long-awaited boost for low-wage workers in our state,” said Ray Waldron, president of the Minnesota AFL-CIO, one of the organizations that worked on the issue. Even though few union members earn the minimum wage, raising it is the right thing to do and provides a wage floor that ultimately helps all workers, he said.

“It’s the right thing to do for our economy and for people who’ve been working 40 hours a week, 52 weeks a year and are living in poverty in spite of their hard work,” noted Brad Lehto, Minnesota AFL-CIO legislative director.

Coalition set the agenda
“One reason we succeeded is we defined the argument on our terms,” said Kevin Ristau, education director for the JOBS NOW Coalition. “We said this issue affects an awful lot of people. We made it a moral issue.”

In addition to the AFL-CIO and JOBS NOW, groups advocating for the higher minimum wage include the Joint Religious Legislative Coalition, various faith communities, Progressive Minnesota, the League of Rural Voters, the Minnesota Community Action Association and UNITE HERE Local 17, among others.

Constituents met with legislators both at the Capitol and within their districts, held community meetings, rallies and other events, and wrote thousands of letters and e-mails. Much of the lobbying focused on legislators from rural districts.

Of the approximately 128,000 Minnesotans who currently earn less than $6.15 an hour, many are in greater Minnesota. Another approximately 100,000 workers earn less than $7 an hour and likely will also see a bump in wages, Ristau said.

JOBS NOW estimates the minimum wage increase will pump $100 million in the state’s economy, much of it in greater Minnesota.

“Unlike people who invest for a living, people who work for a living will spend all this money in their local communities,” Ristau said. “It matters an awful lot more for the economy of greater Minnesota than it does for the Twin Cities.”

Stopping the tip penalty
While it didn’t make headlines, advocates said it was equally important to stop a “tip penalty” from being added to the legislation. That would have allowed employers of waitresses and other tipped employees to count tips toward their pay, keeping their wages frozen at a sub-minimum-wage level.

Supporters were also heartened that the measure had bipartisan support. Eighteen Republicans joined 66 DFLers in passing the higher wage in the House; nine Republicans joined 35 DFLers in the Senate.

“The truth is, until the Reagan era, this was a bipartisan issue,” noted Ristau. “It was not a political football until the 1980s.”

Regardless of how it passed, low-wage workers will be grateful for the increase, which will put an additional $2,000 a year in the pockets of full-time workers, Ristau said.

“They’ll be out buying groceries and trying to keep their gas tanks full,” he said.

For more information
Visit the Workday Minnesota special section, Legislature 2005
Visit the JOBS NOW website, www.jobsnowcoalition.org
Visit the League of Rural Voters website, www.leagueofruralvoters.org

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