Mayors take up call for $9.50 minimum wage

St. Paul Mayor Chris Coleman talks about what a $9.50 minimum wage would mean for his city, as Hibbing Mayor Rick Cannata looks on.

St. Paul Mayor Chris Coleman talks about what a $9.50 minimum wage would mean for his city, as Hibbing Mayor Rick Cannata looks on.

Raising the minimum wage to $9.50 would boost the paychecks of an estimated 20,000 workers in St. Paul, injecting $27 million into the city’s economy. In Minneapolis 30,000 workers would get a raise, a $40 million bump for the city’s economy.

It’s no surprise, then, that both Twin Cities mayors today added theirs to the growing chorus of voices calling on lawmakers to make raising Minnesota’s minimum wage a top priority when the Legislature returns to session Feb. 25.

“This is the wealthiest nation on earth, and no one should have to live in poverty,” St. Paul Mayor Chris Coleman said. “But unfortunately, the current minimum-wage level is forcing too many of our families into that situation.

“If you work hard, you should get rewarded for that work.”

Coleman and Minneapolis Mayor Betsy Hodges joined other Minnesota mayors at the Capitol today for a press conference organized by the labor-backed Raise the Wage Coalition, which is pushing a bill that would raise the state’s minimum wage from $7.25 to $9.50 per hour, and adjust the wage annually for inflation.

[Related: “It’s time for Senate to act on minimum wage“]

Both Coleman and Hodges identified raising the minimum wage as an effective way to combat rising income inequality. Minneapolis’ economy is recovering from the Great Recession, Hodges said, but “low-wage workers, people of color are not reaping the same benefits of the recovery as other people are.

“Raising the minimum wage is crucial to ensuring that people who work for a living, can make a living. We need (legislators) to take action on this.”

Income inequality isn’t just an urban problem. On the state’s Iron Range, Hibbing Mayor Rick Cannata said, there are good-paying jobs in the mining industry and minimum-wage jobs like the one his wife holds down – but not much in between.

“You see neighbors who can’t decide what they want to do, feed their families or buy fuel oil,” Cannata said. “That’s why I’m here today.”

According to an economic analysis by the JOBS NOW Coalition, raising the minimum wage to $9.50 by 2015 would boost purchasing power statewide by $470 million, as low-income workers and families are much more likely than middle- or upper-income families to spend most – or all – of what they earn on goods and services.

“The people at minimum wage now can’t go out to support the mom-and-pop stores on Main Street,” Cannata said. “You get a couple dollars more in your wage, you’re going to go out and spend that.”

Mayors also offered a strong rebuke to opponents who say the minimum wage was never intended to support an adult, let alone a family. Instead, they say, it is an entry-level or “training” wage for teenagers and young adults seeking employment experience.

In fact, a report issued by the Minnesota Department of Labor and Industry last month found 40 percent of the state’s minimum-wage earners are older than 24.

“If it is a training wage, then there are people who have been in training for years if not decades,” Hodges said.

“It’s a quaint notion that it’s kids working at Dairy Queen” who earn the minimum wage, Coleman added.

[Click here to take action in support of raising the state’s minimum wage to $9.50 by 2015!]

Bobby Kasper: On Labor Day, we recommit to keeping the American Dream alive

Bobby Kasper

Bobby Kasper

Labor Day is an opportunity to celebrate the vital, incredible contributions Minnesota’s working people make every day to their workplaces, to the economy, to their families and to our communities. It is the one day of each year we collectively tip our cap to the working men and women who continue to build this nation through sweat, sacrifice and innovation.

And there is much to celebrate! American workers have proven again and again that they comprise the best, most productive workforce in the world. That’s not lip service, either. According to the Economic Policy Institute, the productivity of the U.S. economy grew by 80 percent from 1979 to 2009, continuing a post-World War II trend that has made our economy the envy of the world.

Americans are working longer hours, taking on multiple jobs and producing more goods and services than ever before. But as vital as American workers have been to the productivity of our economy, is the economy working for American workers?

Sadly, most Americans see the answer to that question every time they open a paycheck. Simply put, the wages of middle class workers have not kept up with their productivity – not by a long shot. Hourly compensation for the typical American worker grew by only 10.1 percent from 1979 to 2009, and the Great Recession has only made things worse.

So what happened to the profits created by American workers’ increased productivity? Where did all that money go? The top 1 percent of earners has grabbed nearly 60 percent of the income gains over the last 30 years. That’s right: You earned it, but the 1 percent is keeping it.

We know this is not the way to grow an economy that works for everyone. When wages are stagnant – as they have been for 30 years – the buying power of the middle class takes a big hit. That’s why raising wages and restoring middle class buying power aren’t luxuries that can be postponed until the economy gets better. They are the only way to make our economy better.

This Labor Day, let’s recommit to growing our economy from the middle class out. That means holding the 1 percent accountable for paying its fair share. That means fighting for federal and state minimum wage standards that do not leave people who get up and go to work every day unable to support themselves and their families. And that means demanding our employers – and elected officials – respect workers’ freedom to come together in unions and bargain for better wages, benefits and working conditions.

Every day Americans work hard and sacrifice to achieve the American dream. On Labor Day, we’re reminded of our responsibility to continue fighting to make that dream a reality.

– Bobby Kasper is president of the 50,000-member St. Paul Regional Labor Federation, AFL-CIO.