Illinois Senate votes yes to wage increase

[pj1959us 0]

Illinois Senate votes yes to wage increase

By Kurt Ericksonand and Chris Lusvardi

kurt.erickson@lee.net chris.lusvardi@lee.net

SPRINGFIELD - Illinois' lowest paid workers will see a $1 an hour bump in their paychecks next July 1 under legislation sent to the governor Thursday.

On a 40-17 vote, the Democrat-controlled Senate approved raising the state's minimum wage to $7.50 an hour.

Gov. Rod Blagojevich said he will sign the measure into law, despite worries by the business community that the wage hike will drive up prices for goods and services.

"People working 40 hours a week, 52 weeks a year earning minimum wage bring home just $13,000. That's just not enough," the governor said in a statement. "Raising the minimum wage will make it a little easier for these families to get by."

Under the plan, the state's minimum wage will increase 25 cents in each of the next three years, ending at $8.25 an hour in 2010.

The minimum wage increase will boost the average annual income for thousands of workers to $15,600 next year. By 2010, the yearly salary for a full-time minimum wage earner will be $17,160.

State Sens. Bill Brady, R-Bloomington, and Dan Rutherford, R-Chenoa, voted against the increase.

Business groups complained the increase will force companies to raise prices to accommodate the boost in labor costs. Opponents also said Illinois should have waited for Congress to approve a boost in the $5.15 per hour national minimum wage, primarily because Illinois' higher rate could drive businesses out of the state.

"Everybody wants to be working for a living wage. I'm certainly for that," said Senate Minority Leader Frank Watson, R-Greenville, who voted against the increase. "It ought to be done nationally so there is some consistency to it."

The proposal does keep intact a 50-cent-per-hour reduction in wages for workers younger than age 18.

Despite concerns that businesses will cross the state line to pay workers less, two lawmakers who represent districts bordering Iowa voted "yes."

"Being on a border community, I'm highly concerned and worried that I will drive business into another state. But I certainly believe voters sent us a pretty clear message in the last election. They didn't like the way things are going. I think $7.50 is a decent wage for a person with no skills," said state Sen. Mike Jacobs, D-East Moline.

"You're going to affect really hundreds of thousands of people and families that depend on the minimum wage," added state Rep. Mike Boland, D-East Moline.

Source: http://www.pantagraph.com/articles/2006/12...news/121400.txt

[Carol&Marc 0]

Unemployment is about to rise in Illinois! Its funny people are goin yippppppeeee I'm gonna make a buck an hour more, when all they be doin is lookin for work.

[ace13 0]

Dumb move, Illinois.

[one...two...tree 2,762]

Dumb move, Illinois.

Why wouldn't you support this measure that helps out the working poor?

[PlatyPius 5]

Dumb move, Illinois.

Why wouldn't you support this measure that helps out the working poor?

I'm all for helping out the working poor. I've BEEN the working poor.

You just don't get it though.

Illinois is right next to Indiana, as I'm sure you know. If Illinois raises its minimum wage, it's very likely that factories (a large percentage of minimum wage jobs) will move to Indiana or maybe Iowa. Indiana has connections to many Interstates, it offers massive tax abatements, it has relatively low taxes, it offers no protection to workers at all, it is a manufacturing mecca already anyway, AND it still has the $5.25 (or whatever it is) minimum wage.

Ergo, you have people in Illinois who are not only NOT benefitting from the wage increase, they don't have an income at all now. That is why I agree with the people who voted against. It needs to be National in order for it to work.

[one...two...tree 2,762]

Dumb move, Illinois.

Why wouldn't you support this measure that helps out the working poor?

I'm all for helping out the working poor. I've BEEN the working poor.

You just don't get it though.

Illinois is right next to Indiana, as I'm sure you know. If Illinois raises its minimum wage, it's very likely that factories (a large percentage of minimum wage jobs) will move to Indiana or maybe Iowa. Indiana has connections to many Interstates, it offers massive tax abatements, it has relatively low taxes, it offers no protection to workers at all, it is a manufacturing mecca already anyway, AND it still has the $5.25 (or whatever it is) minimum wage.

Ergo, you have people in Illinois who are not only NOT benefitting from the wage increase, they don't have an income at all now. That is why I agree with the people who voted against. It needs to be National in order for it to work.

Can you demonstrate when historically raising the minimum wage has ever done that? I've heard this argument regurgitated over and over with regard to the minimum wage, yet interestingly, nobody worries when the top executives of companies salaries increase.

[Trompe le Monde 1,107]

I suppose a lot of minimum wage service jobs are not out-sourcable at all, though -- retail workers, restaurant workers, cleaners, etc

[cmartyn 0]

Interesting, Our state has a minimum wage higher than theres yet we have 2.1 percent unemployment.

[one...two...tree 2,762]

Interesting, Our state has a minimum wage higher than theres yet we have 2.1 percent unemployment.

Which state are you in?

Dumb move, Illinois.

Why wouldn't you support this measure that helps out the working poor?

I'm all for helping out the working poor. I've BEEN the working poor.

You just don't get it though.

Illinois is right next to Indiana, as I'm sure you know. If Illinois raises its minimum wage, it's very likely that factories (a large percentage of minimum wage jobs) will move to Indiana or maybe Iowa. Indiana has connections to many Interstates, it offers massive tax abatements, it has relatively low taxes, it offers no protection to workers at all, it is a manufacturing mecca already anyway, AND it still has the $5.25 (or whatever it is) minimum wage.

Ergo, you have people in Illinois who are not only NOT benefitting from the wage increase, they don't have an income at all now. That is why I agree with the people who voted against. It needs to be National in order for it to work.

Can you demonstrate when historically raising the minimum wage has ever done that? I've heard this argument regurgitated over and over with regard to the minimum wage, yet interestingly, nobody worries when the top executives of companies salaries increase.

I'd add that it could possibly draw a lot of workers from Indiana to move to Illinois for better pay.

[cmartyn 0]

Connecticut..

I think its 7.40 / hour. Oregon is 7.50.

[one...two...tree 2,762]

Connecticut..

I think its 7.40 / hour. Oregon is 7.50.

Ah, ok. Yeah, from what I understand, minimum wage increases have consistently shown that they boost local economies rather than hurt them. Yeah, maybe you pay 10 cents more for your burger, but the guy flipping it now has more income to spend right back into the community. What a novel idea.

[PlatyPius 5]

I suppose a lot of minimum wage service jobs are not out-sourcable at all, though -- retail workers, restaurant workers, cleaners, etc

That is true. People working fast food, etc would benefit.

Interesting, Our state has a minimum wage higher than theres yet we have 2.1 percent unemployment.

What is the minimum wage in the states surrounding yours?

Connecticut..

I think its 7.40 / hour. Oregon is 7.50.

Ah, ok. Yeah, from what I understand, minimum wage increases have consistently shown that they boost local economies rather than hurt them. Yeah, maybe you pay 10 cents more for your burger, but the guy flipping it now has more income to spend right back into the community. What a novel idea.

I agree that it makes sense. None of the states mentioned so far though have been states where manufacturing is the primary industry. Indiana thought it would be smart to focus on manufacturing and ignore risky things that would probably die soon....like computers and technology. I work in a factory. I'm not even close to being minimum wage, but I still constantly fear losing my job. Foxconn is already staffed by at least 35% illegal workers from Mexico. How long will it be before the factory itself moves to Mexico? No one can say that it's a remote possibility..... It's a probability. It is mentioned from time to time by the higher-ups. A minimum wage increase would likely be just the thing to cause them to make a decision. Or if Indiana actually started passing laws that protected workers. (See my rant a few days ago about my check being short $200. I discovered that there is nothing I can do about it, except sue them.)

Edited December 2, 2006 by PlatyPius

[cmartyn 0]

I dunno, Here is a cool map.

http://www.dol.gov/esa/minwage/america.htm

Edited December 2, 2006 by cmartyn

[GaryC 7]

There are a lot of economists who think that raising the minimum wage hurts rather than helps.

A survey published in the Winter 2005 Journal of Economic Perspectives, an academic publication, reports that 71 percent of economists at America’s top universities agree with the statement “a minimum wage increases unemployment among the young and unskilled.” About one-third of the economists agree outright, and another third agree with reservations. Think about that: the consensus among top economists is that the very existence of a minimum wage harms those who, according to its supporters, need it most.

http://www.heritage.org/Research/Economy/wm676.cfm

One study by the Employment Policies Institute in Washington, D.C., claims that legislative efforts already under consideration to raise the minimum wage could lead to a loss of 10,000 jobs and a $262 million increase in labor costs to employers.

"It's really a small-employer tax increase," said Gene Barr, vice president of political and regulatory affairs for the Pennsylvania Chamber of Business and Industry. "An employer could end up paying as much as $80 (more) per employee, per week. Rather than opening the door (for employment), it might shut people down at the door."

http://www.pittsburghlive.com/x/pittsburghtrib/s_371525.html

I am sure you can find opposing views on the impact of raising the minimum wage and since I am not an economist I will not argue with them This is just the first two articles I came up with.

[PlatyPius 5]

I dunno, Here is a cool map.

http://www.dol.gov/esa/minwage/america.htm

Rhode Island $7.10

New York $6.75

New Jersey $6.15

Massachusetts $6.75/hour

The point being that the surrounding states don't offer enough of a payroll savings to justify a move. Except maybe New Jersey. But who wants to move to New Jersey? lol

I envy your unemployment rate, though. Indiana's could have been similar if they had tried to lure businesses other than manufacturing. One company moves production to China or Mexico, and we go up .5% - 1% in unemployment.