Committee Knocks A Quarter Off Donovan’s Minimum Wage Proposal
by Christine Stuart | Mar 15, 2012 4:29pm
(5) Comments | Commenting has expired
Posted to: Business, Jobs, Labor
Lawmakers on the Labor and Public Employees Committee debated whether now was the right time to be increasing the minimum wage before passing a bill that increases it by 50 cents in each of the next two years.
House Speaker Chris Donovan, D-Meriden, who proposed the bill, had hoped to increase Connecticut’s $8.25 minimum wage by 75 cents over the next two years making it one of the highest in the nation, but Democratic lawmakers knocked off a quarter Thursday in order to appease the opposition. It also pushes back the effective date from July to January.
However, it will still be indexed to the Consumer Price Index in the third year. The substitute bill also increases the tip credit for waitresses from $5.69 to $5.80 an hour, and it freezes the hourly rate for bartenders at $7.34 for two years. The minimum wage would increase to $8.75 in the first year and $9.25 in 2014.
“We heard concerns both about the amount of the increase and the timing of implementation.The bill as it stands now addresses those concerns and still helps low-income workers across our state,” Donovan, who is also running for Congress, said in a statement.
Sen. Edith Prague, D-Columbia, said some of the more convincing testimony she heard during the public hearing came from an economist who told lawmakers now is a good time to raise the minimum wage.
“If an economist believes this is a good time to raise the minimum wage it should give us pause to think about that,” she said.
Like most of the Democrats on the committee, Prague believes that “If people had money in their pockets they would be able to spend a little more.”
“Secondly it helps people get out of poverty,” which she said is contributing the Connecticut’s largest in the nation achievement gap.
Despite the support its received from lawmakers, Democratic Gov. Dannel P. Malloy will still need some convincing for it to pass.
“The Governor has always been a strong supporter of the minimum wage, but he does have concerns about potential impacts to the state economy. He will review the bill if it gets to his desk,” Roy Occhiogrosso, Malloy’s senior communications adviser, said Thursday.
Republican lawmakers like Rep. Craig Miner, R-Litchfield, were largely opposed to increasing the minimum wage.
“Not because people who raise this are in anyway less concerned, or more concerned than I am about people who earn minimum wage, but because I don’t see where these additional dollars continuously come from,” Miner said.
He said those who earn minimum wage qualify for the state’s new Earned Income Tax Credit. He said this is just going to make it harder for small businesses in the state to survive.
But proponents counter that a new report released today by the national Employment Law Project shows that about 57 percent of the 162,000 minimum wage workers in Connecticut are employed by large national chains.
“It might be hard to imagine, but for giant profitable corporations like Wal-Mart and McDonald’s times are better than ever,” Lindsay Farrell, executive director of the Connecticut Working Families Party, said.
But Republicans said they rather listen to their constituents instead of economists or special interest groups.
Miner said he doesn’t know any economist who has to make a payroll. He said economist usually work for universities or special interest groups.
“I don’t take an economists view as gospel,” Miner said. “And I don’t think most small business people would either.”
Rep. John Rigby, R-Colebrook, said those increases in salaries will mean consumers are going to have to pay more for goods.
He said his constituent, who is a bartender two nights a week at a chain restaurant in Torrington, told him to vote against the proposal because her restaurant has already closed three of its locations.
He said he thinks it will also push younger people, like grocery store baggers, out of the workforce.
Rep. Zeke Zalaski, D-Plantsville, said he has to disagree with Rigby about the negative impact a minimum wage increase would have on the economy. He said since minimum wage earners are so low wage “they spend all their income.”
“They’re going to spend all the income they gain from this and it’s going to go back into the community,” Zalaski said. “And maybe some of these restaurants or breakfast places that may have to pay a little more, at least maybe their employees eventually will be able to afford to go there and eat.”
The restaurant industry has been a vocal opponent of the legislation and will continue to be a vocal opponent according to its lobbyist who bristled at the notion the bill was some type of compromise.
The seven Democrats on the committee defeated a Republican amendment that sought to strike language which indexes the minimum wage to the Consumer Price Index after the first two years of 50 cent increases.
The bill passed 8 to 3 with the support of the committee’s seven Democrats and Sen. Tony Guglielmo, R-Stafford Springs. Reps. Miner, Rigby, and Bill Aman voted against it.
Tags: minimumwage, Democrat, Republicans, wages, restaurants, increase, Edith Prague
(5) Comments
posted by: AndersonScooper | March 16, 2012 10:30am
History of Connecticut’s minimum wage:
http://www.ctdol.state.ct.us/wgwkstnd/wage-hour/history.htm
Fairly rough that it will be three years of no upwards adjustment to the minimum wage. But if the $.50/$.50 passes, that will round out to an increase of one quarter per year.
And for those against this bill, really? You should go out and talk to at least a dozen minimum wage workers, (mainly in the service industry, btw), and come to a better understanding of how hard it is to get by on $350-$400/week. This isn’t charity, it’s simple justice, and it won’t cost jobs as the service work still needs to get done.
posted by: Noteworthy | March 16, 2012 11:59am
The min. wage in CT is already higher by far, over our neighbors. I guess this is up there with our utility rates, gas costs and taxes too. We want to have the highest cost state in the nation. Have at it.
From a business owner’s view - particularly small or medium sized businesses. It’s not just one person times $.50 an hour. It’s 3 or 4 or 20 and if it adds up to several hundred dollars a week, across a year, it’s a sizeable increase to the baseline cost of operating that business.
It could lead to job cuts, but it more likely will lead to hours cut. People will work less but at a higher rate. What has been gained? This comes on the heels of Malloy’s historic $3 billion in tax increases and downward pressure on consumer prices due to the continuing economic slump.
Just as an aside, it will also hurt tax collection. Higher costs, mean lower profits, means lower tax collections. It would be wise to really think this through.
posted by: NOW What? | March 17, 2012 1:38am
“It would be wise to really think this through.” - Agreed. I tend to doubt that that has happened here.
posted by: CitizenCT | March 17, 2012 9:00am
Mr. Scooper, after the minimum wage is increased, you should go visit those teens unable to find a summer job and develop a work ethic and sense of worth because the job market will support less minimum wage positions. Instead you’ll see more drug arrests and imprisonment. You can visit them in jail. A higher minimum wage presents another barrier to youth growing up to be productive citizens.
posted by: AndersonScooper | March 17, 2012 1:56pm
Lolz.
Hey, I have no problem with a slightly lower minimum wage for teenagers, as done in some states.
But the idea that a higher minimum wage will means less service jobs is a joke. Except for the greeters at Wal-mart, employers hire workers for real needs and not charitable reasons. The floors will still need to be mopped, the trash taken out, and the cashiers rung. It’s not as if companies can do without their minimum wage workers, and this type of increase fairly applied across all of Connecticut will just mean slightly higher prices for the consumer.
PS—all you economic Darwinists should move to China!