Increase to $6.50 an hour has
benefited nearly half a million hardworking Illinoisans
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Workers and advocates applaud
governor for positive impact of wage hike on working families
[JAN. 7, 2006]
CHICAGO -- On Jan. 1, Gov. Rod R. Blagojevich
celebrated the first anniversary of Illinois' minimum wage increase,
which has meant nearly $3,000 a year in increased wages for almost
500,000 hardworking Illinoisans.
In 2003, Blagojevich signed
Senate Bill 600, increasing the state's minimum wage 26 percent
from the federal minimum wage rate of $5.15 an hour, which hasn‘t
increased in nearly 10 years. The increase took effect in two
phases. On Jan. 1, 2004, the Illinois rate went from the federal
level of $5.15 an hour up to $5.50, and on Jan. 1, 2005, the rate
increased again to $6.50 an hour. Prior to the increase, a full-time
minimum wage worker earned only $10,712 a year working 40 hours a
week, 52 weeks a year -- well below the 2004 poverty level of
$12,500 for a two-person household. With the full increase in place,
a full-time worker earning the minimum wage earns $13,520 annually.
"Raising the minimum wage has meant almost $3,000 a year more for
the half a million people in our state who work hard to support
their families," Blagojevich said. "That money helps them put food
on the table, buy clothes for their children, pay the bills --
things that were so much harder to do when the minimum wage was
$5.15 an hour, instead of $6.50 an hour."
While many believe the higher minimum wage mainly affects student
workers or teenagers, nearly 70 percent are actually 20 years of age
or older (average age is 31), and nearly one-third are heads of
households. With the new minimum wage, workers 18 years of age and
older receive $6.50 an hour, and those younger are paid an hourly
rate of no less than $6.
"This increase has allowed me to have more money available to buy
food, clothes and pay bills," said Maria Elena Reyes, who works for
a printing company near Romeoville, in Chicago's western suburbs.
"But what's most important, it allows me to send money to my
daughter in Mexico, where she's studying to become a doctor. I thank
Governor Blagojevich for raising the minimum wage and helping
workers across the state."
With the minimum wage increase, "Now I am able to buy more things
my kids need," said Christin Howard, who works for a home health
agency in downtown Chicago. "This helps pay bills that normally
would remain unopened on the table."
"We at ACORN and our members fight for a living wage every day,"
said Beatrice Jackson, president of the Illinois chapter of the
Association of Community Organizations for Reform Now. "The increase
of Illinois' minimum wage will help families to be less dependent on
federal programs and more able to live better lives. The increase
gives hope to people for the future and lets them know that we will
be on the job for them. Governor Blagojevich has moved in the right
direction with this, and we hope for his strong support towards an
even higher wage for workers and their families."
Blagojevich supported a hike in the minimum wage as research
showed significant erosion in the value on the wage since it was
first enacted. The federal minimum wage of $5.15 an hour buys about
a third less than it did a quarter-century ago, according to a 2003
study conducted by the Center for Urban Economic Development of the
University of Illinois at Chicago.
Studies also suggest that Illinois' higher minimum wage benefits
businesses as well as workers. Low-income workers are more likely to
spend their wages locally than any other group of workers. Besides
potentially moving the wage earners with lowest incomes toward
economic independence, the University of Illinois at Chicago study
also indicated that higher wages could trigger as much as $900
million in additional sales for Illinois businesses, and more than
$1.2 billion when workers earning near the minimum wage (up to
$7.50) are taken into account.
Illinois is among 16 states that have passed minimum wages higher
than the federal standard of $5.15 an hour. The other states are
Alaska, California, Connecticut, Delaware, Florida, Hawaii, Maine,
Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont,
Washington and Wisconsin.
Protecting workers' rights is one of the governor's top
priorities, and he has through executive or legislative action:
Signed legislation that greatly
extends protections to the state's 300,000 day laborers and
gives the state better enforcement tools to go after unlawful
day and temporary labor agencies that cheat workers of their pay
or fail to register with the Illinois Department of Labor.
Signed legislation that broadens
picketing rights for labor unions and other workers involved in
labor disputes with their employers, allowing workers to picket,
post temporary signs, park vehicles and set up tents or other
temporary shelter areas for the picketers on public rights of
way.
Signed legislation that
dramatically changes the workers' compensation system to
increase benefits for workers, reduce costs for businesses and
fight fraud. After the governor made workers' compensation
reform a top priority in his 2005 State of the State address, he
convened negotiations over several months with business and
labor leaders and members of the General Assembly, resulting in
the first major overhaul of Illinois' workers' compensation
system in nearly 20 years.
Expanded health care benefits to
working families. Almost 400,000 men, women and children have
received health care in Illinois -- at a time when most states
are not providing increased coverage for the working poor and
are taking people off Medicaid or significantly reducing their
benefits.
Signed the All Kids
legislation, making comprehensive health insurance available to
nearly 250,000 children in Illinois who do not have health
insurance. The new law will cover more than half of children who
come from working and middle-class families that earn too much
to qualify for state programs like KidCare but not enough to
afford private health insurance.
Signed legislation protecting
hundreds of thousands of workers from being stripped by new
federal regulations of their right to overtime pay.
Signed legislation to protect
workers from employer indoctrination and confinement, making
Illinois only the third state in the nation to enact card check
recognition of public employees. The law provides that if 50
percent or more of workers sign union authorization cards, union
recognition is automatic.
Signed legislation to help ensure
that women receive equal pay for equal work. Under Illinois'
Equal Pay Act, if a man and a woman do the same job, they must
be paid the same.
Signed legislation to protect
U.S. jobs by requiring companies bidding for state business to
certify whether the terms of the contract will be performed in
the United States and encouraging state agencies to buy products
that are manufactured in the United States.
Expanded rights of Illinois
workers to join a union. This directly benefited 50,000 home
child-care workers, 20,000 personal-care assistants and
thousands of graduate students and court reporters.
Signed legislation to improve the
structure and funding of the Unemployment Trust Fund.
Signed legislation that requires
every contractor providing equipment, materials or supplies to
the state of Illinois to specify that no foreign-made equipment,
materials or supplies be produced by children under the age of
12. Provides for penalties for contractors who knowingly furnish
goods produced by foreign child labor to the state.
