U.S. Senate rejects raising minimum wage

The U.S. Senate has rejected two attempts to raise the federal minimum wage.

Unions and allies vehemently opposed one of the proposals, by Sen. Rick Santorum, R-Pa., but supported the other, by Sen. Edward Kennedy, D-Mass. Santorum’s plan would have raised the minimum wage by $1.10 — to $6.25 an hour –? in two steps. But the AFL-CIO called it a “sham” that was packed with favors for businesses, not workers.

Santorum’s plan eliminated millions of workers from eligibility for the minimum wage and for overtime pay.

For example, it targeted 2 million restaurant employees and others who receive tips as part of their income. It would have mandated a nationwide “tip penalty,” allowing employers not to pay minimum wage to any tipped employee as long as tips add up to the minimum wage. Further, it prevented state and local governments from overriding the federal tip requirement.

Santorum’s plan also abolished the 40-hour workweek for overtime pay, instead requiring time-and-a-half pay only after workers put in 80 hours over a two-week period. Further, Santorum wiped out the minimum wage for workers at companies with revenues of less than $1 million a year, and eliminated fines against 5 million companies for their first violations of various safety, health, pension or labor laws.

In votes taken Monday, the Senate defeated Santorum’s proposal 61-38. Kennedy’s proposal would have raised the federal minimum wage by $2.10 –? to $7.25 an hour –? in three steps. It was defeated 49-46.

Minnesota’s Mark Dayton and Wisconsin’s Herb Kohl and Russ Feingold voted for the Kennedy proposal and against the Santorum plan. Minnesota Sen. Norm Coleman voted for both.

The Minnesota Senate has approved raising the state’s minimum wage to $7 by July 2006. The House has yet to schedule a hearing on a similar bill.

Adapted from The Union Advocate, the official newspaper of the St. Paul Trades and Labor Assembly. E-mail The Advocate at: advocate@mtn.org

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