Minimum Wage for Workers Now At $5.70 Per Hour:
Badger State Minimum
Wage Raise In Effect
MADISON, WI (June 1, 2005) - The long delayed minimum wage increase comes as a relief to the lowest paid Wisconsin working families who have had their pay frozen for seven years. Legislators and others are weighing in on the new minimum wage which went from $5.15 to $5.70 at midnight May 31, 2005.
Enactment of the minimum wage now, instead of 18 months from now as some Legislators wanted, will put roughly $2000 extra dollars in the pockets of each minimum wage worker. The minimum wage hike has been the subject of much contention in the halls of the state's legislative bodies. There have been many hours of conversation, debate and rhetoric between Republicans and Democrats on the issue. However, the change is now in effect.
Last year’s attempt to increase the state minimum wage by administrative rule was rejected by Republican members of the Legislature’s Joint Committee for the Review of Administrative Rules (chaired, at the time, by Senator Joe Leibham and Representative Glenn Grothman (now a member of the Senate)). Subsequent legislative proposals to increase the wage languished in Legislative committees and were not allowed to be brought before the full Legislature for a vote.
Dian Palmer, RN, President of the SEIU Wisconsin State Council and a member of the Minimum Wage Advisory Council lauded the June 1st increase:
“Governor Doyle is to be commended for calling the Wage Council together, and never giving up on this issue once the council made its recommendations,” Palmer said. “On the other hand, those in the Legislature who do not believe there should be any minimum wage reflect a social philosophy that was discredited a hundred years ago.”
95th Assembly District Representative Jennifer Shilling had these comments:
"Today is a great day for working families in Wisconsin. After more than fifteen months of pressure from Democrats, labor organizations, and local governments across the state, Republicans in the legislature have seen the light. Increasing the minimum wage today will benefit nearly 200,000 low income families across the state - more than 3,300 in La Crosse alone."
"Under the leadership of Governor Doyle, we're finally able to bring these families the
relief they've desperately needed for more than seven years. Starting today, workers will
receive an immediate increase in wages, with another raise on the way next year. That
means more money for workers to pay for life's essentials - food, clothing, and housing."
"I am extremely proud of the effort that lead to this victory, and the leading role the La
Crosse City Council and former Mayor John Medinger played in helping to secure
economic justice for our most needy citizens. This increase in the minimum wage was
long overdue, and we certainly wouldn?t be where we are today without their courage and
vision," Shilling said.
State Representative Steve Nass (R-Whitewater), Chairman of the Assembly Labor Committee, expressed disappointment that Governor Jim Doyle has increased Wisconsin’s minimum wage to $5.70 per hour now and $6.50 per hour on June 1, 2006. The Department of Workforce Development has determined that Doyle’s state-mandated pay boost will increase payroll costs for small businesses by nearly $175 million.
“Despite what some might think, I am opposed to increasing the Wisconsin minimum wage to $6.50 per hour and if given the chance to vote I would back-up my statement with clear action. The Governor’s main motivation with this increase isn’t about helping low wage workers, it is all about throwing a bone to union leaders at a time when union membership is very unhappy with Doyle,” Nass said.
Nass noted that Wisconsin has about 2.8 million hourly and salary workers with the average hourly rate being $15.46 per hour (2004 data). The Department of Workforce Development estimates that about 182,000 workers earn $6.50 per hour or less. The same report also notes only 39,000 workers were earning the old minimum wage of $5.15 per hour. A large portion of those earning $6.50 per hour or less are part-time employees.
“The small business owners of this state are facing what amounts to a backdoor tax increase of $175 million. The cost of this minimum wage increase will be passed on to consumers in the form of higher prices and in some cases employers will choose to employ fewer low wage workers or even layoff existing low wage workers because of these new labor expenses,” Nass said.
Wisconsin’s minimum wage workers last saw an increase to the minimum wage in 1997.
Rep. Bob Ziegelbauer (D-Manitowoc) released this statement on what he calls the “Minimum Wage Deal”.
"Today’s increase in the “minimum wage” is a bad idea no matter how popular it may be. Despite good intentions, it will hurt young people, and the poor throughout Wisconsin, the people we really want to help the most."
"Although the GOP didn’t put up much of an argument on this, the fact is that in a market economy, minimum wage jobs are most often a short time starter rate for new entrants into the workforce, the first rung on the ladder of economic opportunity, and rarely a source of family supporting income," Ziegelbauer continued.
"The false impression continually reinforced by the overheated partisan political rhetoric is that raising the minimum wage helps poor families. The truth is that an overwhelming majority of these jobs are held by first time workers desperately in need of work experience, most often for a short time, not heads of households trying to support a family. Raising the minimum wage will only have the effect of making it much harder for those needing that first job to enter the work force and gain the experience that will allow them to move up to get a better job, most often, quickly," according to Ziegelbauer.
"This isn’t about making profits for business. Making these jobs harder to get will greatly hurt the anonymous poor and the young workers who need employment. Knocking out another bottom rung on the ladder of economic opportunity by raising the minimum wage just makes it harder for those who deserve the opportunity to climb aboard and share in the prosperity of America,” Ziegelbauer concluded.
The increase in Wisconsin’s minimum wage was initially recommended by the Governor’s Minimum Wage Advisory Council. The Council included representative of both business and labor. Business members included representatives from Wisconsin Manufacturer’s and Commerce, the Wisconsin Restaurant Association, the Wisconsin Grocers Association, and the Wisconsin Federation of Independent Businesses.
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