|
 At least that's what labor union and community organizations said
during a Thursday news conference to support a bill that would
increase the state's minimum wage up to more than $10 per hour
within four years.
An increased minimum wage could stimulate the economy, said Ron P.
Baiman, an economist from the Center for Tax and Budget
Accountability.
"We really have to redirect a lot of income toward people who will
spend it -- if you want to keep your economy going, if you want it
to grow," Baiman said.
Minimum wage workers are not only teenagers trying to make pocket
money. Seventy percent of minimum wage workers are heads of
households, Baiman said.
As of Jan. 1, Illinois has the third-highest minimum wage in the
country, according to the U.S. Department of Labor. The minimum wage
is $8.25 per hour, which was increased from $8 on July 1.
"On the pure economic rational, without bringing up demand, without
stimulating the economy, I don't see how we're going to grow,"
Baiman said. "Illinois has been a very slow growth. In fact, we
haven't had any jobs growth. Before the 2000 recession, we still had
fewer people employed than we had in 2000. That's after 10 years of
people entering the labor force. This is not a viable situation. We
can't keep going on. We need to find a way to get job growth
restarted."
Under
Senate Bill 1565, the current minimum wage would be increased
by 50 cents an hour plus inflation each year, so it would gradually
be restored to its historic value. By 2014, Illinois' minimum wage
would climb to $10.65. And after 2014, the rate would be annually
adjusted to keep up with the cost of living. State Sen. Kimberly Lightford, D-Westchester, sponsors the bill and
said she is concerned about the state's business climate.
"As we go forward, I want to make sure that minimum wage workers ...
are not ignored and that they are not forgotten," Lightford said.
"Their issues and rights need to be a part the discussion. Senate
Bill 1565 will help to keep this important issue on the table as
members of the General Assembly work to keep Illinois competitive
and fair for business and for workers. Workers have to be included
in discussions as we move forward working on the business climate."
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The bill also would stop "wage discrimination," supporters say.
It would prohibit a 50-cent-per-hour lower wage for employees under
the age of 18 and would put a stop to a "training wage," which
allows employers to pay people 50 cents less per hour for the first
90 days of employment, according to Timothy E. Drea,
secretary-treasurer for the Illinois AFL-CIO.
But merchants and businesses are putting their foot down on a
potential minimum wage increase. Rob Karr, a lobbyist for the Illinois Retail Merchants Association,
said another increase to the minimum wage would also increase labor
costs.
Karr said he and other business associations have been occupied
defending the state of Illinois in the past couple of months --
there were the "vulture-like" behaviors of other states' governors
luring in Illinois businesses, the "expensive" workers'
compensations and the recent corporate tax increase.
"And if we throw (an increased minimum wage) on top of this,
frankly, I don't think you can defend it anymore," he said.
"Employers only have so much money to spend and invest in the state
and in their business," Karr said. "They can't go and print more
money, they can't levy additional taxes, they can't pass much in
terms of price increasing, because the consumers can't afford it. So
they really only have two choices -- you lay people off or you close
your business."
[Illinois
Statehouse News; By MARY J. CRISTOBAL]
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