BALCONY: New York State Minimum Wage Must Be Raised to $8.50

NEW YORK, NY (04/18/2012)(readMedia)-- The Business and Labor Coalition of New York submitted the following testimony to the New York State Senate Democratic Conference's Minimum Wage Public Forum on April 18, 2012:

New York needs a minimum wage that helps families struggling to make ends meet. Mayor Michael Bloomberg, Gov. Andrew Cuomo and Assembly Speaker Sheldon Silver unanimously agree on this – and we at the Business and Labor Coalition of New York, BALCONY, heartily agree with them in principle.

However, we believe that simply raising the minimum wage from $7.25 to $8.50 is not enough. We, like the Fiscal Policy Institute, believe the state must increase, enact and phase-in $10 an hour minimum wage, starting at $8.50 and gradually increasing to $10 in 2014.

It is a common sense approach that both business and labor can – and must – support.

More than 1.6 million New Yorkers – about one in every six workers in New York City and other parts of the state – would see their hourly wages increase to $10 an hour over three years, from approximately $15,080 a year at $7.25 an hour; to $17,680 a year under an $8.50 wage, and to $20,800 a year with a $10 hourly wage.

The reality is that even at $10 an hour, the base salary is still below the federal poverty line of $22,040 for a family of four.

It should be noted that 88% of the workers who would be affected by a higher minimum wage are adults – and most are in retail. The increase also would help those that need it most – women, blacks and latinos, who disproportionately make up most of the workers at minimum wage.

Most importantly, and contrary to claims from the groups that always oppose raising the minimum wage that it will kill jobs, the Fiscal Policy Institute says a $10 minimum wage will result in more consumer spending and actually create more than 25,000 jobs.

As Director of BALCONY, which represents more than 1000 businesses, trade associations, labor unions and non profits, I urge lawmakers in Albany to go beyond the proposal of a flat increase to $8.50 and pass the phased-in $10 hourly wage.

The time to do this is now: New York's minimum wage has not kept pace with inflation over the last four decades and gone up by just a dime in the last five years.

The lingering recession has made it difficult for low– and middle–wage workers to get a pay raise to properly support themselves and their families.

As James Parrott, Director and Chief Economist of the Fiscal Policy Institute notes: "Our lowest-paid workers need a raise, and a boost will not only promote economic recovery, but ensure that the benefits of the recovery are more broadly shared."

Eighteen states and the District of Columbia already have minimum wage levels at $7.25. Washington State, which leads the nation with a $9.04 minimum wage, and seven other states have a system that adjusts the rate to stay apace with consumer price increases.

As for the tired old argument that minimum wage hikes kill jobs, research shows that increases in San Francisco, C.A. and Santa Fe, N.M., not only helped workers, but didn't wipe out jobs. Likewise, Massachusetts, Vermont and Connecticut haven't lost jobs to New York by dint of having a higher minimum wage.

We must finally put aside the cries of "wolf" from Republicans and anti-labor interests and pass a minimum wage that will allow working men and women to better support their families and to enjoy the economic benefits that will come from putting more money into the hands of consumers.

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BALCONY, 4 W. 43RD ST. NEW YORK, NY 10036, 212-219-7777, LOUG@BALCONYNEWYORK.COM