Minnesota Senate votes to raise minimum wage

With bipartisan support, the Minnesota Senate Thursday voted to raise the state’s minimum wage, putting pressure on the House and Gov. Tim Pawlenty to act.

The legislation, authored by Sen. Ellen Anderson, DFL-St. Paul, raises the minimum wage to $6.10 an hour July 1 of this year and $7 an hour in July 2006. The current minimum wage of $5.15 an hour has not been increased since 1997.

Two Republicans, Steve Dille of Dassel and Paul Koering of Fort Ripley, joined Senate DFLers in approving the measure. A companion bill in the House has yet to be heard by committee, but Anderson said the time is right for an increase.

“In the other body, the votes are there to pass the minimum wage this year,” she told her colleagues on the Senate floor. “This is not just an exercise in politics. This is a meaningful vote.”

Dozens of organizations, from labor unions to religious groups, have been meeting with legislators to advocate for a higher minimum wage, said Brad Lehto, legislative director of the Minnesota AFL-CIO. “The pressure switches to the House now,” he noted.

Most workers will benefit
Even though only about 50,000 Minnesotans make the minimum wage, nearly every worker in the state would benefit by an increase, Lehto said.

“There always an upward pressure on wages when you increase the minimum wage,” he said, with workers earning below $10 an hour benefiting the most. “The people that earn minimum wage are going to have more money to buy products. That boosts profits for employers, and gives union members a chance to get more at the bargaining table.”

Senators advocating the minimum wage increase argued it makes sense both economically and morally, while opponents said it was unneeded or amounted to ill-advised government intervention.

“It’s government always trying to solve a problem and creating more problems,” said Sen. Dave Kleis, R-St. Cloud, who said the higher wage would put Minnesota out of step with surrounding states. He introduced an amendment to forestall any action by the Legislature until Congress raises the federal minimum wage, but his measure was defeated.

Fifteen states and the District of Columbia currently have a minimum wage that is higher than the federal standard of $5.15 an hour. If the minimum wage had kept pace with inflation since the 1960s, it would be $8.46.

Entry-level wage?
Sen. Tom Neuville, R-Northfield, said a higher minimum wage would result in greater unemployment among teenagers.

“The minimum wage is not intended to be a living wage,” he said. “It is intended to be an entry-level wage.”

Advocates disputed his contention, however. Sen. Linda Higgins, DFL-Minneapolis, noted that “unfortunately there are no entry-level costs associated with an entry-level job,” and low-wage workers must still pay the same prices as everyone else for gasoline, groceries and other necessities.

Perhaps the best argument for fairness came from Sen. John Hottinger, DFL-St. Peter. He noted that a worker earning the proposed minimum wage of $7 an hour would take home $56 for an eight-hour day — $10 less than the $66 a day that every legislator gets as per diem for expenses.

For more information
Track legislaton and find contact information for lawmakers on the Legislature’s website, www.leg.state.mn.us

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