By Steve Smith/California Labor Federation
Editor’s note: Somehow we at the SDFP completely missed highlighting this important story last week. But it is an important story go go along with the fast food worker protests that we have been bringing you coverage of.
California made history last night. With the support of California’s unions, the Legislature voted to raise the state’s minimum wage to $10, the highest minimum wage in the country. The wage will be implemented in two steps: an increase to $9 per hour in July of next year, followed by another one-dollar increase to $10 in January of 2016. Gov. Brown has agreed to sign the bill, AB 10, authored by Assemblymember Luis Alejo.
The wage increase will affect more than 2.3 million California workers, according the Economic Policy Institute. It means that single moms will have a little extra to support their families. It means seniors who’ve been forced to re-enter the workforce will have a little more to help pay for prescription drugs. And it means that all low-wage workers have received validation that their work is worthy of dignity and respect.
California Labor Federation Executive Secretary-Treasurer Art Pulaski:
Raising the minimum wage isn’t just an economic necessity. It’s a moral imperative. For far too long, low-wage workers have toiled for far too little.
The minimum wage deal came together with the strong support of Gov. Jerry Brown and legislative leaders.
Gov. Brown:
The minimum wage has not kept pace with rising costs. This legislation is overdue and will help families that are struggling in this harsh economy.
The wage increase is expected to provide a significant economic boost to California. By providing an estimated $2.6 billion in additional wages to the state’s lowest-paid workers, California will reap $1 billion in new economic growth as workers spend their increased wages. Job growth will expand as businesses hire to meet the increased consumer demand.
Even at $10, low-wage workers will still struggle. We must continue to do everything possible to decrease economic inequality and provide opportunities for low-wage workers to move up the ladder. But the wage increase that passed last night establishes California as the national leader in supporting low-wage workers. That’s exactly where we should be.
Senate President pro Tempore Steinberg:
For millions of California’s hard-working minimum wage employees, a few extra dollars a week can make a huge difference to help them provide for their families. They deserve a modest boost and after six years; an increase in California’s minimum wage is the right thing to do.
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So, do all workers get $2 more per hour? If I got $10 now, then I make minimum wage, so I want $12 an hour. Isn’t that going to increase unemployment in the long run?
Minimum wage= the minimum amount that an employer is legally allowed to pay their employees. It has no effect on those already making more than $10 per hour. And no, it will not increase unemployment in the long run.
I’ve already told my employees that as the minimum wage increases incrementally – so will their pay – for exactly the same amount.
You should ask your employer to do the same, the worst that could happen is they say no – which just may cause you and your co-workers to ban together, to start restoring strength to worker unions – that has eroded over the last 12 years in this county.
I knew a guy years ago who worked at Carls Jr as a cook. While still a humble job he’d been there about five years and had had a number of incremental raises.
After one of California’s larger min wage increases, it left him making about 25 cents an hour above minimum.
To Marcus Boyd: Unions are effective with a skilled labor force that would hurt an employer to lose- thus they have clout when threatening a walkout. It would take a long time to find qualified replacements. Minimum wage jobs are entry level, let them strike. Hire a new guy tomorrow, throw him a broom or an apron, don’t miss a beat.
However it’s commendable to offer all your employees an incremental $2 an hour raise. How this could happen on a widespread basis without an immediate leap in consumer prices on everything across the board is a mystery. Unemployment is anyone’s guess.
Kate,
You might want to reread the article and note that the $10.00 an hr. does not go into effect until 2016; $9.00 an hr. goes into effect in July of 2014.
It’s about time this happened; actually, it was long overdue.
@John – “How this could happen on a widespread basis ” – I’m afraid I must agree. Much like gas prices – once a product that everyone must buy goes up, the price stays up. It’s actually called greed – but re-labeled as free-market capitalism – accepted by the majority to benefit a minority. It’s perplexing to me – it really is…
I’m sure it will all factor in nicely to the results of the fed’s unprecedented injections of quantitative easing. (Economics 101: Excessive Quantitative Easing = Micro Inflation = Depression)
All I can do is what I know is right – I’ll give my staff what’ll be needed to survive under the new minimum wage /cost-of-living increases…