January 31, 2011

SPEAKER DONOVAN, LEGISLATORS CALL FOR MINIMUM WAGE INCREASE; SAY INDEXING WILL GIVE EMPLOYERS PREDICTABILITY ON LABOR COSTS
Joined by Representatives of Labor, Small Business and Workers,
Speaker Says Wage Hike Now Will Help Low-Wage Workers
and Stimulate Economy with Increased Spending

House Speaker Christopher G. Donovan (D-Meriden) joined Democratic legislators, labor leaders, a small business owner and minimum wage workers today to propose an increase in Connecticut’s minimum wage, and said legislation to be proposed in the 2012 session will call for indexing the wage to keep pace with the rising cost of living and give employers predictability on their labor costs.

The proposal calls for Connecticut’s current minimum wage of $8.25 per hour to be raised to $9.00 per hour this year, $9.75 per hour next year and then to be indexed in the years following. He was joined at a news conference today to discuss the proposals by Democratic State Representatives Zeke Zalaski, Ezequiel Santiago and Diana Urban, labor representative Lori Pelletier, business owner Barbara Stasiak and Elaine Peters of Mothers for Justice.

“More families than ever are relying on low-wage and minimum wage jobs to make ends meet,” Speaker Donovan said. “That leaves them struggling. While most job losses in the recession hit higher wage sectors like construction, manufacturing and finance hard, much of the new job growth has been concentrated disproportionately in low-wage industries.”

He added, “Raising the minimum wage now is good for Connecticut workers and good for our economy. Doing so can stimulate the economy by increasing consumer spending, which in turn helps to create jobs at local businesses needed to meet increased demand.”

“We must continue the push to establish a minimum wage that allows individuals an opportunity to provide for themselves and their families,” said Rep. Ezequiel Santiago (D-Bridgeport), vice-chair of the Labor Committee. “The minimum wage is an especially important issue for me as city residents – who disproportionately rely on service industry jobs – are the most affected by changes to the base level income.”

“Low wage earners in our state are struggling to survive in an economy that continues to be very difficult,” said Rep. Bruce “Zeke” Zalaski (D-Southington), House chair of the Labor Committee. “While we have made strides in improving the minimum wage in recent years, raising and indexing the minimum wage will help single mothers, families and all those who work at minimum wage paying jobs. Many of these wage earners work at part-time jobs and they deserve our support.”

“Currently a single mom of two working full-time—40 hours a week and 52 weeks a year—would still fall well below the federal poverty level and that is simply shameful,” said Rep. Diana Urban (D-North Stonington and Stonington), House chair of the Select Committee on Children. "This is also a great way to help boost our local economy since most minimum wage earners live paycheck-to-paycheck and will spend increased earnings—more than $71 million per year—at local businesses.”

“Increasing the minimum wage is vital to Connecticut workers and their families, and in particular woman and people of color,” said Lori Pelletier, secretary-treasurer of the CT AFL-CIO. “Increasing the minimum wage puts more money into families’ pockets and in turn those families spend it in the Connecticut economy. Low income families have been hit hard by the economic downturn of the past three years and now is the time to provide those families with an increase in their wages. By leading the way on this issue Speaker Donovan has once again shown his support for workers and their families.”

Barbara Stasiak, owner of Bridal Bells Boutique in Berlin, CT, said she pays employees at rates above minimum wage. “I challenge anyone, business owner or otherwise, who opposes a minimum wage increase to try to live on $8.25 an hour. A fair and living wage keeps employees loyal and productive. Paying a fair wage hasn’t hurt my business, it’s helped it. It’s time that lawmakers and business owners stand up for their workers. Raising the minimum wage is the right thing to do, and the right time is now.”

Speaker Donovan said that in 2010 the industries that experienced the highest job growth were retail sales persons, cashiers, and food preparation workers – all occupations with median wages below $10 per hour.

He cited a poll by the National Employment Law Project that found that 67% of Americans support gradually raising the minimum wage from the current federal rate of $7.25/hour to at least $10.00/hour.

Connecticut last raised its minimum wage from $8.00 per hour to $8.25 per hour in January 2010. The indexing proposal would automatically adjust the minimum wage annually to keep pace with the rising cost of living. States that currently index their minimum wages so that they are automatically adjusted each year are: Arizona, Colorado, Florida, Missouri, Montana, Nevada, Ohio, Vermont and Washington.

The federal minimum wage would be $10.40 per hour if it had been indexed since its inception based on cost of living.

The last time the federal government raised the minimum wage was July 2009 from $6.55 per hour to $7.25 per hour.