LANSING – On the same day when Governor Jennifer Granholm signed into law a legislative package that raises the minimum wage for some employees, State Representative Fred Miller (D–Mount Clemens) called for legislation to extend the recent increase in the state's minimum wage law to include wait staff as well.
"I applaud Governor Granholm's leadership in giving Michigan workers a much-deserved minimum wage raise," Rep. Miller said. "The Republicans have bowed to public sentiment that raising the minimum wage is the right thing to do. Now, let's finish the job and raise the rate for wait staff as well."
Miller called for action on legislation to enact portions of the minimum wage ballot proposal that were not addressed in the legislation signed by the Governor today. Minimum wage for those who receive tips and gratuity is currently $2.65. The proposed raise timetable would mirror the legislation signed into law today, raising the rate to $4.45 on Oct. 1, 2006, then to $4.65 on July 1, 2007, and finally to $4.90 on July 1, 2008.
Disputing critics who claim a minimum wage raise benefits only ‘teenagers', Rep. Miller said, "I worked no less than four minimum wage jobs to help pay my way through Michigan State University. Young people are often working towards goals such as building towards a brighter future by saving for college. I ask the critics, exactly why shouldn't their drive for personal achievement be recognized and rewarded by increasing the minimum wage?"
He also pointed out that 40 percent of minimum wage workers are the sole breadwinners of their families, according to the Economic Policy Institute.
In March 2005, House Democrats introduced a package of legislation to raise the minimum wage in Michigan from $5.15 an hour to $7.15. A boost of the minimum wage for wait staff, tying future wage increases to the rate of inflation, and penalties for non-compliance were also included in the legislative package. Throughout the year, repeated efforts to bring this legislation before the full House of Representatives for a vote were shot down by the Republican Leadership. After months of frustration and inaction by the Michigan Legislature, several community groups began circulating petitions to present a proposal to raise the minimum wage on the ballot in November 2006.
Finally, after over a year of pressure from Democratic legislators and citizens across the state, the Michigan Legislature voted to approve the minimum wage raise from its current $5.15 an hour to $6.95 on Oct. 1. The wage would climb to $7.15 an hour July 1, 2007, and to $7.40 July 1, 2008 under the package the Governor signed into law today.
"It is important to remember that raising the minimum wage is only part of the necessary strategy to stimulate Michigan's economy. We must also ensure the strength of public education in Michigan and make sure that our workforce is the best trained anywhere. Additionally, Michigan's tax system must be progressive and fair if we are to preserve our quality of life, attract businesses, and spur investment." Rep. Miller said. "While these steps are all necessary, we must make sure no one is left behind. Raising the minimum wage allows people to earn a decent living and must not be overlooked."
A full time worker earning the minimum wage earns $10,712 annually, which is $5,000 less than the federal poverty level for a family of three. In terms of purchasing power, the minimum wage is at its lowest point since 1968. If it was worth today what it was worth then, the minimum wage would be $8.50 per hour. This means that minimum wage earners would need to work 66 hours per week to earn what they would have working 40 hours per week in 1968.