Fight for Minimum Wage Increase Will Continue

Social share icons

Minnesota Senate Majority Leader Tom Bakk told reporters today that a minimum wage increase is likely off the table for the 2013 session. The Minnesota AFL-CIO has been working with a coalition of faith, labor, non-profit, and small business groups advocating an increase to $9.50 per hour over three years with annual increases for inflation.

“If the Legislature adjourns without a meaningful minimum wage increase this year, it will be extremely disappointing to hundreds of thousands of low-wage workers who could use a raise and the countless small businesses that would have benefitted from increased consumer spending,” said Minnesota AFL-CIO President Shar Knutson.

A recent Star Tribune Minnesota Poll showed nearly 70% of Minnesotans support an increase in the state minimum wage, with 41% supporting the House’s $9.50 per hour increase.

“Frankly, it’s surprising that an issue so popular with Minnesotans has essentially stalled this session,” Knutson added.

The minimum wage has continued to lose value over the last 40 years. If the minimum wage had retained its 1968 value - its peak purchasing power - the minimum wage would be closer to $10.55 per hour. 

Even at $10.55, the minimum wage would still not be enough to support a family. A family of four, with two parents working, each would need to earn $14.03 per hour to make a living.

Additionally, for every $1 dollar increase in the minimum wage there is a boost in consumer spending by a low-wage workers’ household by $2,800 over the following year.(The Spending and Debt Responses to Minimum Wage Increases; Daniel Aaronson, Sumit Agarwal, and Eric French; REVISED February 8, 2011)

Knuston said the federation of more than 300,000 union members and minimum wage coalition partners remain committed to a meaningful minimum wage increase.

“Hard work should pay for all Minnesotans and a minimum wage increase would ensure that low-wage workers are part of Minnesota’s economic recovery,” she said. “We’re not going to give up on them.”