WASHINGTON — Labor unions and members of government agencies are continuing to voice their support for increasing the federal minimum wage, particularly on the heels of the five-year anniversary since it was last raised to $7.25 per hour in July 2009.
“Since then, the cost of a gallon of milk, a week of child care, a month’s rent and everything else a working family needs has gone up,” says U.S. Secretary of Labor Thomas E. Perez.
“A minimum wage increase to $10.10 would benefit 28 million people, giving them a little bit of breathing room and peace of mind,” adds Perez. “As I’ve traveled around the country, employers of all sizes and in varied sectors have told me they see higher wages as a sound business investment.”
Increasing the minimum wage to $10.10 roughly falls in line with what the wage would be if indexed for inflation.
Business for a Fair Minimum Wage, a national network of business owners and executives who believe a “fair minimum wage makes good business sense,” published the results of its “scientific national opinion poll” indicating that 61% of small-business employers support increasing the federal minimum wage to $10.10 in “three stages over two-and-a-half years,” adjusting it annually to keep pace with the cost of living.
“Small-business support for raising the federal minimum wage is strong across the country. Employers favor raising the minimum wage to $10.10 by a 67% majority in the Northeast; 61% in the Midwest; 60% in the West; and 58% in the South,” the group says.
The organization’s poll also found that many small-business owners believe an increase would bring benefits, including increased consumer purchasing power and lower employee turnover, among others.
“When wages are so low that workers can’t make ends meet, it weakens consumer demand and hurts business,” says Holly Sklar, CEO of Business for a Fair Minimum Wage. “As this national poll shows, small-business owners expect a higher minimum wage to boost customer purchasing power and customer satisfaction, reduce employee turnover and increase productivity.”
President Obama has signed an Executive Order mandating a $10.10 minimum wage for workers under federal service contracts, according to Perez.
On a local level, 13 states and the District of Columbia have increased their minimum wages since 2013 (previously reported by American Coin-Op here).
The full report and methodology of Business for a Fair Minimum Wage’s poll is available here.
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