An attempt by the labor community to raise the minimum wage could put to the test the
unlikely bond that has developed in recent years between Rhode Island’s
business and labor leaders.
AFL-CIO has declared a hike in the state’s minimum wage its top legislative
priority this year. The labor organization is promoting a 50-cent increase
from $5.15 to $5.65 an hour in July 1999 and another 50-cent increase,
to $6.15 in July 2000. The legislation would also directly link the
minimum wage to the cost-of-living index in July 2001.
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Nee, secretary/treasurer of the AFL-CIO, said the time is right to raise
the minimum wage.
“The last time it was raised was a couple of years ago,” Nee said. “We have
often waited too long in-between when it has been raised. It is far
less burdensome on employers if it is done on a regular basis, rather
than taking a big hit.”
Nee said he expects Massachusetts to raise its minimum wage this year and
that Rhode Island has traditionally had a minimum wage at least slightly
higher than the federal rate, which is currently $5.15 per hour.
ceeding
the federal rate, said Nee, is “a good public policy statement.”
Nee gets an argument from business interests, such as the Greater Providence
Chamber of Commerce.
Laurie White, vice president of operations at the Greater Providence Chamber
of Commerce, said the business community has perennially opposed a hike
in the minimum wage and that although it is early in the legislative
process, she did not expect that stance to change.
White pointed out that such a hike would give Rhode Island the highest minimum
wage in New England, along with Connecticut. The current minimum wage
in Massachusetts is $5.25 per hour.
At this point, we would oppose it,” White said. “You don’t want to be out
of step with your counterparts in New England.”
White also said that an improved economy has in itself had a positive impact
on wages. With a competitive labor market, it’s likely that the majority of workers
are being paid in excess of minimum wage,” she said. “Market forces
have done that.”
Nee aid the argument against raising the minimum wage has been the same
for years.
“I heard the same arguments three years ago and the economy has done well,
so it hasn’t been that much of a burden,” Nee said. “What we want to
have is a situation where we are encouraging as many people as possible
to get into the workforce. We have to make work economically viable.
If you are going to have a just and humane society, prosperity has to
accrue to all economic classes.”
for the improved relationship of late between business and labor, both
White and Nee expect it to survive a battle over the minimum wage.
“We’re looking to build on the momentum we had last year at the General Assembly,”
White said. “We don’t see this as an us versus them proposition.”
Nee said he looks forward to continuing to work on legislative initiatives,
citing the development of a shipping port at Quonset Point as a particularly
important one.
There will always be issues that we do not agree upon,” Nee said. “But that’s
what makes a democracy.”
The fate of the state’s minimum wage ultimately will be decided by lawmakers
at the State House.
William V. Irons, a Democrat from East Providence, is among the legislature’s
most influential lawmakers. He has been lauded for his willingness to
work with the business community. In recent years, Irons said, he has
been “on the fence” with regard to raising the minimum wage. But, he
said, when the wage was last raised a few years ago he did not here
an outcry from the business community.
“I have often been a lightning rod for business people,” Irons said. “But
the last time it was raised, I didn’t hear a lot of complaints. The
biggest problem now is finding people to work.”
Though he stopped short of locking into either side of the debate, Irons said
it may in fact be time to increase the minimum wage. He added that “welfare
to work” programs have little chance for success if people are not motivated
to join the workforce.
It’s a troubling situation when we leave the lowest of the ranks behind us,”
Irons said. “We are trying to develop an economy and jobs that give
people an opportunity.
There has to be a reasonable incentive to motivate people – no matter who
you are. The rising tide has to lift all the boats.”
Leona Kelley, a Republican from South Kingstown, has already heard from
constituents – some of whom own small businesses.
I’m getting a lot of telephone calls from people who have one or two employees
and they’re complaining about the cost,” she said. “It’s a very hard
decision. There are two sides.”
Irons said it may come down to simple fairness. The economy has been strong
– and everyone should benefit.
I don’t want to see a Rhode Island economy where the split between the
haves and the have-nots grows wide,” he said. “That’s not success in
my eyes.”
