Gov. Jim Doyle began the new legislative session in full stride, working to implement a new state-wide minimum wage, one of the many goals he outlined in his “Grow Wisconsin” plan.
As announced in his State of the State address, the governor assembled a 19-person task force to delve into the controversial job of increasing Wisconsin’s minimum wage with the intention of surpassing the national average by the end of the decade.
The advisory council consists of business, labor and economic experts from around the state who will recommend an appropriate amount for the minimum wage increase requested by the governor.
Ald. Austin King, District 8, applauded the appointees for the council saying, “The group is incredibly balanced and made up of both liberals and conservatives, including large business owners whose soul professional purpose is to keep wages as low as possible.”
According to Doyle’s Deputy Press Secretary Jessica Erickson, “Raising the minimum wage is important for the state of Wisconsin because it will help between 130,000 and 160,000 workers better provide for themselves and their families.”
Doyle stresses the fact that workers who receive the current minimum wage of $5.15 an hour will only make approximately $1100 in a given year, not enough to live on or raise a family and also an income below the national poverty rate.
“While just under half of the minimum wage earners are under the age of 25, more often than not, the workers are women who are single mothers struggling to support their children,” Erickson said.
Doyle also feels that while workers earning minimum wage salaries would benefit from a higher wage, the Wisconsin economy will also prosper because money will be put back into the consumer’s pockets.
However, Republican Party of Wisconsin spokesman Chris Lato is skeptical of Doyle’s argument, claiming the timing is wrong for a minimum wage hike.
“As our economy is recovering from a recession, increasing the wage will only further delay the economic growth. It is a very delicate time to be incurring increased expenses on corporations around the state,” Lato said.
Lato also pointed to a lack of any relevance for an increase in Wisconsin’s minimum wage, since the nature of Wisconsin’s economic structure means there are very few employers paying workers a minimum wage salary.
“For the vast majority of the companies in Wisconsin this issue does not even come into play because in order for businesses in this state to attract quality workers, they have to offer considerable wages and benefits.”
Lato also believes those Wisconsin companies who do pay minimum wage will be relocated outside the state if they are force to increase their wages once Doyle’s initiative is implemented.
In his address to the advisory council, Doyle said Illinois is the most recent state to increase their minimum wage successfully. Workers in Illinois will be given a minimum wage raise in two segments, from an increase of $5.50 this year to $6.50 an hour next year.
Doyle’s task force on increasing Wisconsin’s minimum wage is scheduled to make its recommendation to the governor sometime in the spring. From there minimum legislation will go to the state legislature for approval.