In his State of the Union address, Obama will also call on
Congress to pass a bill that would increase the federal minimum
wage for all workers to $10.10 an hour from $7.25 and index that
to inflation going forward.
The executive order for new contracts or existing contracts in
which terms are being changed would take effect at the beginning
of next year. Issuing the order allows Obama to bypass Congress
in a limited way, with Republicans opposed to a broad increase
in the minimum wage.
Janitors and construction workers would be among the
beneficiaries of the order, the White House said.
"A higher minimum wage for federal contract workers will provide
good value for the federal government and hence good value for
the taxpayer," the White House said in a statement.
"Boosting wages will lower turnover and increase morale, and
will lead to higher productivity overall. Raising wages for
those at the bottom will improve the quality and efficiency of
services provided to the government."
Reducing inequalities between the rich and the poor and helping
boost the middle class are expected to be key themes of Obama's
address on Tuesday night.
(Reporting by Jeff Mason and Steve Holland;
editing by Peter
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