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Minimum wage could increase to $10 by 2015 if bill passes

June 11, 2012

Several Democratic legislators are proposing an increase to state and federal minimum wages, in an effort they have called “catching up” to the current economy and inflation rates.

U.S. Rep. Jesse Jackson Jr., D-Ill, the federal bill’s main sponsor, said in a statement that the minimum wage law is supposed to serve as a floor, but it has not kept in line with inflation rates over the years.

The current federal minimum wage is $7.25 an hour, and Michigan’s minimum wage is $7.40 an hour.

Jackson said his bill, called the “Catching Up to 1968 Act,” increases the minimum wage to reflect inflation from the past several decades.

A similar piece of legislation is making its way through Michigan’s Legislature, after state Sen. Bert Johnson, D-Detroit, also brought forth a proposal to increase Michigan’s minimum wage.
Johnson said although the economy is rebounding from the 2008 recession, wages remain stagnant at the same time costs of living increase.

“This bill would provide much-needed support to Michiganders who work hard every day to support themselves and their families,” he said.

Johnson’s legislation would increase the minimum wage to $10 an hour incrementally by 2015. Jackson’s bill recommends an immediate increase 60 days after the passage of the bill.

The legislation has been opposed by many Republican lawmakers and business groups that say the minimum wage increase would put job growth at risk because employers would have to pay their employees more.

Wendy Block, the Michigan Chamber of Commerce’s director of health policy and human resources, described the effort as a “death sentence” that could trigger more layoffs.

Companies that are required to pay their workers more but still suffer from loss of profits in a sluggish economy could put workers at an economic disadvantage, she said.

But Jackson said the economy can be revived if low-wage workers receive more purchasing power, which the minimum wage increase would provide.

U.S. Rep. John Conyers, D-Mich., a co-sponsor of Jackson’s bill, said when the bill was introduced, even at $10 an hour the minimum wage would still be shy of 1968 levels when adjusted for inflation.

“This legislation is long overdue and sorely needed,” Conyers said.

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