WASHINGTON, May 24, 2007

Minimum Wage Hike Approved

New Rate Of $7.25 By Summer 2009 Is First Raise Since 1997

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(AP)  America's lowest paid workers won a $2.10 raise Thursday, with Congress approving the first increase in the federal minimum wage in almost a decade.

President Bush was expected to sign the bill quickly, and workers who now make $5.15 an hour will see their paychecks go up by 70 cents per hour before the end of the summer. Another 70 cents will be added next year, and by summer 2009, all minimum wage jobs will pay no less than $7.25 an hour.

For years, the idea of increasing the minimum wage has been stalled by partisan bickering between Republicans and Democrats.

That almost became the fate of this year's proposal. Democratic leaders attached the provision to the $120 billion Iraq war spending bill, which was vetoed by the GOP-controlled White House on May 1 because Democrats insisted on a pullout date for American troops.

But with the House passing a rewritten bill 280-142 and the Senate 80-14, the end is likely near for the longest stretch without the federal pay floor rising since the minimum wage was established in 1938.

Sen. Edward M. Kennedy, D-Mass., called the increase one of “the proudest achievements of this new Congress.”

“We've overcome many obstacles — and faced every procedural trick in the book — to get this minimum wage increase across the finish line,” Kennedy said. “Democrats stood together, and stood firm, to say that no one who works hard for a living should have to live in poverty.”

President Bush announced earlier this year that he supported an increase in the minimum wage.

“We pushed for and very much prefer that it be paired with appropriate offsets for small businesses who would be disproportionately impacted by the minimum-wage increase,” White House spokesman Tony Fratto said. “Unfortunately, the offsets in this bill don't accomplish that.”

This would be the first change since the minimum wage went from $4.75 to $5.15 on Sept. 1, 1997, under former President Clinton and a Republican-controlled Congress.

Click here for the Labor Department’s map of state minimum wages.
The liberal-leaning Economic Policy Institute, a research group in Washington, estimates that 5.6 million workers — or 4 percent of the work force — earn less than $7.25.

“This is a great day for America's middle class,” said Rep. George Miller, D-Calif., chairman of the House Education and Labor Committee. “America's workers have been waiting for a raise for a long time.”

Currently, a person working 40 hours per week at the current minimum wage of $5.15 makes about $10,700 a year. An increase to $7.25 would boost that to just over $15,000 a year.

The full increase, according to Miller, is enough to pay for 15 months of groceries for a family of three.

More than two dozen states and the District of Columbia already have minimum wages higher than the federal level. Minimum wage workers are typically young, single and female and are often black or Hispanic.

Raising the minimum wage was a key part of Democrats' midterm election platform. To help make it palatable for Republicans, they added $4.84 billion in tax relief for small businesses to help them hire new workers and offset any cost associated with an increase in the minimum wage.

Republicans had complained earlier that the tax cuts in the House and Senate bills that led up to the final agreement were insufficient, but the inclusion of the provisions in the Iraq war spending bill made it difficult for them to stop them.

“From a small-business standpoint, the House bill was a peanut shell, the Senate bill was peanuts, and the conference agreement is a single shriveled peanut. It is a missed opportunity,” said Sen. Charles Grassley, R-Iowa.

According to the National Restaurant Association, the last minimum wage increase cost the restaurant industry more than 146,000 jobs and restaurant owners put off plans to hire an additional 106,000 employees.

“A minimum-wage increase will cost our industry jobs, and the vital discussion of how to minimize this job loss is getting lost in the debate,” said Peter Kilgore, the group's acting interim president and chief executive officer.

© MMVII The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.

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Add a Comment See all 94 Comments
by sharncedar May 24, 2007 11:10 PM PDT
"4 percent of the work force %u2014 earn less than $7.25. %u201CThis is a great day for America's middle class,%u201D said Rep. George Miller, D-Calif"

Here come the Democrats - helping the bottom 4% of the country, while the Republicans help the top 4%. I'm glad they could help all those middle class people in the bottom 4%, and let's see, the Democrats are going to pay the house loans for the bottom 4% as well, gee, they sure are generous with our money.
Reply to this comment
by hungry1968 May 24, 2007 11:37 PM PDT
What a disgrace!! In exchange for killing more troops without questions being asked, the minimum wage gets raised. Meanwhile, the illegal immigrants in this country are all making a fraction of the minimum wage. What a way for Bush to put all of his eggs in one basket, while the Democrats just stand idly by and watch.

What a shame...

Vote independent in '08.
Reply to this comment
by linfinster May 25, 2007 12:03 AM PDT
"4 percent of the work force %u2014 earn less than $7.25. %u201CThis is a great day for America's middle class,%u201D said Rep. George Miller, D-Calif"

Here come the Democrats - helping the bottom 4% of the country, while the Republicans help the top 4%. I'm glad they could help all those middle class people in the bottom 4% ... Posted by SharnCedar


That's exactly what I was thinking SharnCedar

I want to know what else got passed to get the war/slaughter to continue. Porkers
Reply to this comment
by zorlacskates May 25, 2007 12:06 AM PDT
whine, whine, whine. "our money?" minimum-wagers pay taxes, too. congress could cure cancer and you'd find a reason to complain. and yea, waste your vote on an independent in 2008. that worked out really well in 2000.
Reply to this comment
by r9119111 May 25, 2007 3:09 AM PDT
What the Republicans would have done, if allowed, would be to eliminate the minimum wage altogether. So, on paper, this appears to be quite a concession for them.

Because of globalization, all American workers are competing with worldwide workers for their wages. Actually, HB2 visas are making it possible for employers to import lower paid middle class workers to replace our own.

ANYONE WHO VOTED REPUBLICAN AND HOLDS A PLACE IN THE MIDDLE OR LOWER CLASSES S-----D THEMSELVES IN RECENT YEARS. FORGET RELIGION, THAT'S A WHOLE 'NOTHER STORY WHERE AMERICANS HAVE LOST GROUND BIGTIME AT THE HANDS OF THE RELIGIOUS RIGHT.

This increase in the minimum wage really isn't going to help poor people at all. It will just encourage employers to look elswhere for cheeper labor. Money is their God, do you think they give a *** about American workers? And, these were people who were born and raised in America.
LOL, fellow Americans, I bleed for all of us. Our pain is just beginning. All this happened while we were being told we were unpatriotic for not kissing their a$$es.
Reply to this comment
by r9119111 May 25, 2007 3:14 AM PDT
Sorry, that's H2B Visas.
Reply to this comment
by ikenneth May 25, 2007 4:26 AM PDT
who cares... i don't think i know anyone who makes minimum wage.
Reply to this comment
by ramos937 May 25, 2007 4:35 AM PDT
To all of you complaining about raising the Min Wage- you try living on $5.25 per hour. You cannot do it. I look forward to gloating when Rush Lumburgh starts whining about passing the raise. Except for a period when he was young, he never earning Min. Wage. But he will complain about the raise.
Reply to this comment
by ralphj53 May 25, 2007 4:56 AM PDT
May 25, 2007

Hello;

A friend of mine who is above 70 years old and is working under a Federally funded "experience works program" told me that, that is the reason they LOWERED the number of hours "experience works" people worked.... from a formerly 26 hours a week... to a lousy 20 hours a week.

If they can't GET you one way... they'll get you in another.

So he finally decided to SWEAR... "Poverty, Chastity, and obedience."

He said that by swearing PC & O he'll go to heaven quicker. ... That is... by being POOR all his life. This INSURES that we will have enough money to FUND the WAR in IRAQ.

Thanks,
slim6744
Reply to this comment
by coffeehead-2009 May 25, 2007 5:16 AM PDT
toss me a bone !!!
The other poster is right - we will pay for the raise in hourly loss. Most of us have already acclimated to part time work *2 jobs* - loss of benenfits and conditions. They will just cut an hour a day - push us harder and it is covered.
BUT
here's todays' florida news.


MIAMI (AP) -- The largest group of Florida tomato growers on Thursday rejected a recent deal between McDonald's Corp. and an advocacy group that would pay field workers more for the fruit.

The coalition maintains tomato pickers are generally paid about 45 cents per 32-pound bucket. The extra penny a pound would boost their pay to about 77 cents a bucket. The Tomato Exchange puts the number closer to 50 cents per bucket, with average hourly wages at $12.48 per hour.


Reply to this comment
by r9119111 May 25, 2007 6:26 AM PDT
Get this:

Corporations are providing traning in foreign countries so people will be employable by them to replace higher paid Americans -- more out-sourced workers receiving lower pay.

Now tell me you voted Republican the past 12+ years my fellow patriotic Americans.
Reply to this comment
by swwils May 25, 2007 7:07 AM PDT
Well raise a flag,Congress actually approved something that will benefit the little people.Now if they could do something about the escalating gas prices the increase in wages might actually count for something.They also need to quit trying to take money from our soldiers and let them have whatever they need to get their job done safely and efficiently.I have always noticed they don't miss a vote pertaining to their pay increase!
Reply to this comment
by space_poet May 25, 2007 8:28 AM PDT
'This is a great day for America's middle class,' said Rep. George Miller, D-Calif. -

Umm, what? Polititions think Middle Class Americans make minimum wage, ****.

I don't care what side you're on, but do you see how they see us? (R and D's)
Reply to this comment
by space_poet May 25, 2007 8:32 AM PDT
Here in FL, it went to $6.67 Jan 1 this year, I think we were supposed to go to $7.25 next, not sure, but now we'll have to do it this summer, am I reading that right?
Reply to this comment
by space_poet May 25, 2007 8:35 AM PDT
tribe - I believe the restaurant wages will match what they always have, half of min wage. They did here in FL when our min wage went up, tipped workers can be paid as little as $3.65/hr currently, actually a pretty good raise for some, but still pityfully low.
Reply to this comment
by perception5 May 25, 2007 8:49 AM PDT
Yeah the Democrats FINALLY passed the minimum wage bill that they VOTED AGAINST last September during the 109th GOP congress.......for political reasons of course......now they want everyone to "think" that their the hero's for the poor people.........yeah right...crooks.
Reply to this comment
by reel-crazy May 25, 2007 8:54 AM PDT
.. and they will all be ecstatic knowing that for each hour they work, they can put almost 2 gallons of gas in their tank...
Reply to this comment
by huskerarmy May 25, 2007 8:56 AM PDT
"Yeah the Democrats FINALLY passed the minimum wage bill that they VOTED AGAINST last September during the 109th GOP congress.......for political reasons of course..."
Posted by perception5
Those "political" reasons being that the GOPers intentionally attached a "poison pill" to the bill which would permanently repeal the estate tax for the wealthiest Americans. It was a deliberate measure designed to kill the minimum wage bill. So who was being "political?" Preceptions, have you no shame?
Reply to this comment
by xlt150 May 25, 2007 9:00 AM PDT
Everytime taxes go up, the minimum wage should be raised. With everything as expensive as it is, nobody can make a decent living. Instead of sending funds to all the third world countries, we need to take care of our own people first.

$5.25 will barely buy you a gallon of gas or a jug of milk.
Reply to this comment
by r9119111 May 25, 2007 9:13 AM PDT
huskerarmy:

Doin't mind perception5, he's dancing to the tune of the Republican Twist. He'll twist everything to make the Dems look foolish. He's just a right wing blow hard.
Reply to this comment
by rohink-2009 May 25, 2007 9:16 AM PDT
Who out there posting on this sight right now makes $5.15 a hour? And, if you do, how much is a .70 an hour raise by the end of the summer going to help? By the time 2009 rolls around, how much is that $7.25 a hour going to help? How is this going to help the middle class?
Reply to this comment
by abbe7 May 25, 2007 9:19 AM PDT
"tribe - I believe the restaurant wages will match what they always have, half of min wage. They did here in FL when our min wage went up, tipped workers can be paid as little as $3.65/hr currently, actually a pretty good raise for some, but still pityfully low.
Posted by Space_Poet at 08:35 AM : May 25, 2007"

Always give the tip in cash ...
Reply to this comment
by prelgovisk May 25, 2007 9:22 AM PDT
Democrats hurt small business and don't care. At least the Republicans care about the Mom and Pop run stores. If we must pay higher wages, how can we raise prices and still compete with the big stores?

Lower taxes for small businesses if the minimum wage goes up. It is an idea that a Democrat never thinks of, or opposses.

My vote is for the candidate that helps the small business man.
Reply to this comment
by processor2 May 25, 2007 9:24 AM PDT
Of my 15 employees, I will have to layoff 3 of them in order to pay for this increase.

...
Reply to this comment
by homespunlady May 25, 2007 9:36 AM PDT
Like the minimum wage If the White House can demand more from the bottom and pay less it'll go for it while touting it's failures as personal successes. READ THE FINE PRINT. there are concessions (also known as loopholes) for the opponents of this as usual.
Reply to this comment
by homespunlady May 25, 2007 9:37 AM PDT
Next, the military. On the eve of Memorial Day I get to read that plans are in the works for the following.
Pay raise - White house wants to shave the rate.
The half percentage point above private sector wage growth meant to play catch up with the private sector is considered "unnecessary" by the White House. Risk life and limb but don't expect better than your safe counterparts back home. THAT will really help retention.
HEALTH CARE - TRICARE FEES the military HMO - yes military DOES pay health care costs despite propaganda to the contrary is being fought over. TRICARE is PRIVATE INDUSTRY run and they're not making enough profit.
SO, the White House wants to CUT benefits to those that need it most to save money by taking it from the people that are MOST VULNERABLE. Under 65 without any other health insurance due to a disability that was "overlooked" when they "retired" or the spouse or kids that need medication that's not on the incredible shrinking small list of the TRICARE pharmacy? GOOD LUCK. Pay more or go elsewhere with the rest of the UNDER INSURED.
The White House makes a BIG DEAL on providing high profit margin for PRIVATE INDUSTRY items such as missiles and Humvees to be blown up in Iraq while chipping away at the lives of the people that they think don't matter - Those that served honorably and are now considered "fair game" when the White House deems them no longer "useful".
Reply to this comment
by itwasntme000 May 25, 2007 9:41 AM PDT
Of my 15 employees, I will have to layoff 3 of them in order to pay for this increase.

...
Posted by processor2 at 09:24 AM : May 25, 2007

yeap... my parents own a small grocery store in a small town. Good thing they are nearing retirement because this could hurt them badly. It is already hard enough to compete with larger stores but now they have to pay all the high school kids an inflated rate, which will in turn force him to give raises to others that have been their for awhile and are making 8 bucks an hour because heck they are only gettin paid barely over minimum wage and they have been their for 5+ years. (AND THE ONLY PEOPLE WHO SHOULD BE MAKING MINIMUM WAGE ARE HIGH SCHOOL KIDS) if you don't make more then that you effed up somewhere along the line and it is your fault.
Reply to this comment
by homespunlady May 25, 2007 9:41 AM PDT
Gee processor2 what business is that? I didn't think you had time to run a business with all the posting you do. Or is putting out LOBBYIST PROPAGANDA YOUR BUSINESS????
Reply to this comment
by homespunlady May 25, 2007 9:45 AM PDT
itwasntme000 AND WHAT'S YOUR JOB??? Working for processor2. Watch out he may have to lay you off to improve his "bottom line". :-)
Reply to this comment
by perception5 May 25, 2007 9:50 AM PDT
He'll twist everything to make the Dems look foolish. He's just a right wing blow hard.
Posted by r9119111 at 09:13 AM : May 25, 2007


......looking foolish...r9119111 have you been watching your hero's, the Dems, in Congress for the past 5 months........talk about being "foolish" take your "blinders" off and start smelling "reality"

Have a nice day
Reply to this comment
by drummer94 May 25, 2007 9:51 AM PDT
WOW! A whole 2.10. Thank you,thank you,thank you! What,not all at once? Uh, won't gas be 7.25 by 2009? And won't taxes be going up to pay for George's war? So it really amounts to less than nothing. Thanks for nothing.
Reply to this comment
by itwasntme000 May 25, 2007 9:54 AM PDT
No homespunlady I work for your mom and your wife... I do the "gardening" at their houses. I trim their hedges and mow their lawns if you know what i mean. Your wife is a big fan of the "english breakfest" and your mom likes the "filthy rameriez" btw.
Reply to this comment
by arealtexan May 25, 2007 9:56 AM PDT
Here I am living comfortably on a relatively small wage compared to most of the country. I make just over $22,000 a year, but through some fortunate inheritances my house is paid for. My family of three is able to live fairly well on what I make, and my wife is attending college full-time with the help of a small amount of financial aid.

Well, I can kiss that life goodbye. With minimum wage going up to $15,000 a year my income needs to go up to $27,000 to keep pace. Does anyone honestly think I'm going to get it? I know I'm not. Raising minimum wage does not help the lower class at all. All it does is bring more of the lower middle class into the lower class.
Reply to this comment
by processor2 May 25, 2007 9:58 AM PDT
Of my 15 employees, I will have to layoff 3 of them in order to pay for this increase.

It will get to a point, machines will be cheaper than people.
Actually now that I think about it, that's not a bad idea.

...
Reply to this comment
by processor2 May 25, 2007 9:58 AM PDT
Of my 15 employees, I will have to layoff 3 of them in order to pay for this increase.

It will get to a point, machines will be cheaper than people.
Actually now that I think about it, that's not a bad idea.

...
Reply to this comment
by processor2 May 25, 2007 9:58 AM PDT
Of my 15 employees, I will have to layoff 3 of them in order to pay for this increase.

It will get to a point, machines will be cheaper than people.
Actually now that I think about it, that's not a bad idea.

...
Reply to this comment
by May 25, 2007 10:00 AM PDT
North Carolina raised its minimum wage last fall to $6.15, my son worked as a busboy at a nearby resturant, after the increase the owners fired all of its busboys and had the waitresses clean the tables
Reply to this comment
by airmanc5 May 25, 2007 10:04 AM PDT
Don't celebrate too much.. Hillary clinton and Barrack obama voted AGAINST this increase, just read the vote.
Democrats are still looking for Harry Reids Balls and Nancy Pelosi's spine, they will be kissing Georges ring as they present the bill to him on Iraq. I wonder if they will be 'crawling" to the White House
Reply to this comment
by jetlizhan May 25, 2007 10:07 AM PDT
ikenneth

well 'cuse me - aren't you the pompous @ss - you obviously don't have children that have ever worked at summer jobs
Reply to this comment
by carlylaine May 25, 2007 10:10 AM PDT
Minimum wage is WRONG WRONG WRONG.

Reply to this comment
by jumkey May 25, 2007 10:18 AM PDT
Wahhhhhh...so processor2 won't be able to exploit as many laborers as he used to? 3 of his 15 employees will be let go to get higher paid work with a better employer?

Sounds like a ringing endorsement for the minimum wage to me.




Reply to this comment
by drummer94 May 25, 2007 10:20 AM PDT
I know two people who own small businesses. One a party store, the other a hotel. Min. wage here, is already 6.95. One lives in a 200,000 home on a lake, the other lives in a 160,000 home behind his business. The min. wage hike is right,right,right.
Reply to this comment
by huskerarmy May 25, 2007 10:26 AM PDT
"Of my 15 employees, I will have to layoff 3...It will get to a point, machines will be cheaper than people... that's not a bad idea."
Posted by processor2
So are you implying that if they did away with the minimum wage you would hire 3 more? I suspect you will employ as many as you require to get the job done and expand where the market allows...no more, no less. The ever increasing gap between the have's and have nots will ultimately be our demise if we allow it to continue. Regardless, if the sole determination is how cheap it is for business, there is no reason we shouldn't just return to slavery. Would that make you happy?
Reply to this comment
by ezillyamused May 25, 2007 10:28 AM PDT
I am a single mother of two, am in college full time to make my kids lives better, and currently make $6.50 an hour. Over half of what I make an hour goes to pay for a gallon gas in my car to get back and forth to school,(there are no public transpotation buses between my home and school),so unless gas prices drop dramatically,(which I don't see Bush and his Big Oil Buddies doing anytime soon!) 70 cents an hour increase isn't going to mean alot to me!
Reply to this comment
by huskerarmy May 25, 2007 10:31 AM PDT
"I am a single mother of two, am in college full time to make my kids lives better, and currently make $6.50 an hour."
And the right is telling you that you make too much, because the rich have to get even richer so that one day, that long awaited "trickle down" will make that 6.50 an hour an acceptable sacrifice for them.
Reply to this comment
by carlylaine May 25, 2007 10:35 AM PDT
I have more to WRITE.

It's good to have low wages for low paying jobs. It gives us CAPITALISTs and CAPITALIST supporters the impetus to strive for better wages. Isn't that what we do? STRIVE.

He11, if we are given the high wages in a cr@p job, what's the point? And what does that do to the worker who is making a little more than minimum per hour? It brings his wages down. Is the government economically sound in this? No, they are BUFFOONS!

The Government wants to make us subservient to them. At least that is what the LIBERALs want.

There is nothing wrong with a teenager in high school earning little money. NOTHING. A kid can learn the value of the buck. When I was getting $.90 an hour, I knew I didn't want to stay in a go-nowhere job. I went to college.

If you are a person who is an adult with a job with low wage then learn to earn more. Gawd! Some people are so lazy. Others want the government to support all of us and this is wrong.

WORK FOR YOUR OWN AND YOUR FAMILY's BETTERMENT. Stop EXPECTING THE GOVERNMENT to bail you out!!!



Reply to this comment
by terrapin78 May 25, 2007 10:36 AM PDT
I think it should have been 1 jump to the $7.25 now. Not take 2 years to get there.

Disgraceful!
Reply to this comment
by ezillyamused May 25, 2007 10:37 AM PDT
huskerarmy:
I, for one, am tired of getting "trickled down" on! But ya know, when I do finish my degree in May,'08, I'll be the one that all of those rich folks are coming to to make them more money on the internet! Wouldn't it be funny if I "fixed" them good!
Reply to this comment
by carlylaine May 25, 2007 10:42 AM PDT
Socialists! A person working in an office SHOULD NOT BE receiving the same amount of pay as the hamburger slinger and vice versa.

We may all be CREATED equal, but some of us have the verve to get out and make something of ourselves. If the low wage earner can't, then it's on himher. Don't put that bleeding heart on me.
Reply to this comment
by ezillyamused May 25, 2007 10:46 AM PDT
processor2:
To help make it palatable for Republicans, they added $4.84 billion in tax relief for small businesses to help them hire new workers and offset any cost associated with an increase in the minimum wage.
Exactly what are you gripping about? You still get your tax cut, so it isn't going to cost you a thing, actually, you'll be getting more! Still going to let those 3 people go?
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