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My Vote on the Minimum Wage
As a member of the Committee on Workforce Development and Audit, I had the opportunity yesterday to hear testimony and participate in vigorous debate surrounding the proposal to raise the minimum wage to $13 an hour throughout the City of Chicago.
The minimum wage has been widely debated in recent months. On November 4th, a majority of 43rd Ward residents voted in support of the referendum to increase the state minimum wage from $8.25 to $10, and the General Assembly is currently considering several proposals to raise the statewide minimum wage to $10.65 or $11. Should these efforts succeed, Illinois will have the highest minimum wage in the nation. Should they fail, the wage disparity between Chicago and the collar counties will be over $2 per hour.
At a time when local retailers and small businesses are struggling to emerge from the economic downturn, a $13 per hour minimum wage represents nearly a 58% increase from the current level. Small businesses, including many in our ward with whom I have spoken, simply cannot shoulder this increase and ultimately, may be forced to close their doors.
Chicago has never, in its history, had a minimum wage that differed from that of the rest of the state. Not only will a $13 per hour wage provide a major disincentive to businesses considering opening their doors in Chicago, but will result in in lay-offs and higher prices, and serve as a deterrent to consumers, many of whom already choose to shop and buy gas in the suburbs.
I support a practical, uniform minimum wage increase that would not put Chicago at a competitive disadvantage with suburban communities or bordering states. I recently co-sponsored an ordinance that would raise the minimum wage to over $10 per hour throughout the City, and importantly, this ordinance has the strong backing of a number of local small businesses, retailers and restaurateurs.
I also support efforts to raise the wage for domestic workers, as these individuals have not been included under minimum wage requirements. These workers are primarily women, and including them in minimum wage requirements is long overdue.
However, I have significant concerns with an increase in the minimum wage to $13 per hour. Therefore, I voted "no" on the increase today.
I believe that the plight of those in Chicago who struggle to pull themselves out of poverty should be addressed through multi-pronged efforts, including earned income credits, food stamps, and affordable housing reform. This burden cannot be placed solely on private employers, just as these challenges cannot be solved overnight.
I am proud to lend my support to a practical minimum wage increase, and I hope this can be achieved through coordinated efforts between State and City government.
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