Minimum Wage Increase: The Good, The Bad, and the Worse

Posted by sbrammer | Weekly Update | Tuesday 10 July 2007 9:55 am

A couple of weeks ago, i was re-arranging the schedule due to somebody being let go. I had a meeting with my student workers to work out the schedule. Afterwards i get a phone call from a student worker who worked for me last year who wants to work for a month until he goes back to SIU-C. So, i had to move some people around, and at first they didn’t want to give up hours, but didn’t realize they were getting a 80 cent raise. I explained to them you will still coming out ahead in money and by working less hours.

These made me started thinking. Every year we get a percentage raise, and this year we got a 2% raise and will get another % rasie when faculty neogiations are finished. So, i figured the amount that the student workers were getting to the amount it got raised to, and it is a 12% raise. By 2010, minimum wage will be $8.25\hr here in IL. So, in three years minimum wage workers will receive a 27% increase.

So, people who are working minimum wage jobs, it is a good thing; however people like myself will be getting screwed over. When you get your pay increase, I’m taking a pay cut, because I have to pay more for everything becuase everytime minimum wage goes up, everything else goes up as well. One co-woker said it best: “i’m one dollar closer to being at the poverty level now than i was a few weeks ago. ”

On one hand, I don’t have a problem with minimum wage increase as long as they increase the wages of other people that are close to that. But on the other hand, most of the people working minimum wage jobs are High School or college students working their way through school, and i don’t think they deserve to be making that kind of money. Plus increasing minimum wage will also hurt small businesses. So, pretty much it’s like this: minimum wage people like the increase; people who are wealthy don’t see a difference, but the middle class is the ones getting the raw end of the deal.

We have several positions at the college where the people are making $8\hr. Now when minimum wage went up from $6.50 -> $7.50, you would think people would realize that the minimum wage people are getting very close to the same amount that they are receiving. Plus that full time staff position might require either an Associates degree, a bachelor’s degree or x number of years experience. Oh not to mention, that new hires are getting paid more some people who have been there for several years. What’s up with that?

It’s going to be very interesting for the next few years to see what takes place regarding this issue. Several of us had a discussion one day, and all of us are on the same page about this.

So, let me hear your thoughts, comments on this. Tell others about this, and have them comment as well.