Salt Lake Tribune
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Rise in minimum wage OK'd by House
This is an archived article that was published on sltrib.com in 2007, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

WASHINGTON - The U.S. House voted Wednesday to raise the minimum wage to $7.25 an hour, although Utah's Republican members voted against the bill.

"It's an issue that makes for some nice political rhetoric, but it actually hurts the people that we're trying to help," said Rep. Rob Bishop, R-Utah. "This bill will increase unemployment among the least skilled and lowest paid workers, including high school and college-age kids, and will increase costs for small businesses and consumers."

But Rep. Jim Matheson, D-Utah, who voted for the measure, said he doubts the doomsday scenarios painted by opponents of the wage increase. The House vote calls for a $2.10 increase in three steps over two years.

"I really don't think it's going to eliminate jobs. My gosh, the $5.15 wage was set years ago. It's long overdue," he said.

However, he said he would support a Senate effort to extend tax breaks to small businesses that might be affected by the rate hike, a move that has the backing of senators from both parties.

"That way, we can honor the hardworking Americans who earn the minimum wage, [and] we can honor the small businesses that create American jobs," said Senate Finance Committee Chairman Max Baucus, D-Mont.

"In the United States of America, the richest nation on Earth, workers should not be relegated to poverty if they work hard and play by the rules," said House Majority Leader Steny Hoyer, D-Md.

A recent study, commissioned by Gov. Jon Huntsman Jr., said that 169,000 Utah workers would benefit from raising the minimum wage to $7 per hour, including 71,000 who would be directly affected. That accounts for about 16 percent of the state's work force.

The Labor Department estimates that, in 2005, 479,000 hourly workers made minimum wage. Another 1.4 million made less than minimum wage, since seasonal and farm workers are exempt from the minimum wage, and tipped employees have a lower wage floor. About 16,000 of those at or below minimum wage are in Utah, the department says.

Rep. Chris Cannon, R-Utah, who during his campaign rejected the idea that there would be any benefit from raising the minimum wage, saying that "nobody in Utah is on minimum wage," voted against the measure, as well.

"Simply increasing the minimum wage without really understanding who it will help or hurt is taking the easy way out," Cannon said. "At a time of record low unemployment, we need to be addressing the more important task of understanding and removing the obstacles that are preventing willing workers from filling the abundant jobs that are available today at much higher wage rates."

Bishop said employers from his district wrote to tell him they would have to fire employees or cut hours to cover the costs of a wage hike. He said that the last time the minimum wage was raised, employment among young men dropped. "It certainly harms kids in part-time jobs and hurts all of us with increased prices," he said. Linda Hilton, director of the Coalition of Religious Communities, said there are thousands of people making minimum wage who would benefit immediately, and voting against it is "not a very family-friendly move."

"A majority of these people [making minimum wage] are supporting families. There is a disproportionate number who are single mothers," she said. "Every dollar helps when you're low-income and have nothing extra in your budget. An extra $30 or $40 a month is the difference between [whether] you eat meat with dinner or you don't. Maybe it's coats for the kids. . . . Maybe it's turning the heat from 60 to 62."

Minimum wage history

* The minimum wage was last raised to $5.15 an hour in 1997.

* The almost 10 years since the last increase was the longest span since the minimum wage was created in 1938.

* Under the bill approved by the House on a 315-116 vote, the $2.10 increase will be phased in in three steps over two years.

Utah representatives are divided along party lines; Senate plans tax breaks for businesses
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