Gregoire mulls scheduled cost of living adjustment for minimum wage

From Public News Service:

By Chris Thomas

OLYMPIA, Wash. – Washington Governor Chris Gregoire has delayed her annual minimum-wage announcement for the upcoming year until this week. The Washington Attorney General, Rob McKenna, believes there hasn’t been enough change in the Consumer Price Index to justify a wage increase, although last month Oregon looked at the same data, and will increase its minimum wage by ten cents an hour.

John Burbank, executive director of the Economic Opportunity Institute in Seattle, says the Washington law has been in effect since 1998, and he thinks the AG is pandering to conservative business groups.

“We have had 1.4 percent inflation over the previous 12 months. So legally the state is bound to increase the minimum wage, come January 1. So, that’s what we would expect that the Governor would do, in accordance with the law.”

Burbank says the decision will affect about 300,000 Washington workers paid at or near minimum wage. He says that with the recession, the ranks of low-paid and part-time workers have swelled, and the Cost-of-Living Allowance (COLA) is built into the state law for good reason.

“Over the long run it’s quite important, and that’s the whole point about having the automatic COLA, is that it enables workers to keep up with inflation over time. And if we miss one year and we miss another year, then suddenly, they’re falling further and further behind.”

At issue is a Consumer Price Index decrease two years ago: The current year’s increase has not surpassed it, so the AG says wages should hold steady. His critics say that’s a narrow interpretation of the law’s intent. Governor Gregoire makes the final decision. It’s expected by Friday. The increase would be 10 or 12 cents an hour, if it happens.

Washington has the highest minimum wage of any state at $8.55 per hour, although Burbank says if wages had truly kept pace with inflation, it would have topped $10 an hour by now.

Read the AG’s opinion at atg.wa.gov

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Posted in Minimum Wage

Comments

  1. Winslow P. Kelpfroth says:

    There has to be a better way of achieving the goals of the minimum wage program than the minimum wage.
    As Paul Krugman has supposedly written, the alternative to a low wage job is not a high wage job; it’s no job, and that’s pretty much what the minimum wage program does well. Face it, folks, there are some jobs that are not worth doing at the minimum wage.

    • Rather than talking about what someone has “supposedly” written, you might take a moment to do a Google search and find out what they have written. For example, if you Google “Paul Krugman minimum wage” you’ll find he wrote this:

      It seems that more and more Serious People (and Fox News) are rallying around the idea that if Obama really wants to create jobs, he should cut the minimum wage.

      So let me repeat a point I made a number of times back when the usual suspects were declaring that FDR prolonged the Depression by raising wages: the belief that lower wages would raise overall employment rests on a fallacy of composition. In reality, reducing wages would at best do nothing for employment; more likely it would actually be contractionary.

      You can read the full article here.

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