Thursday, October 20, 2005
A proposal by Sen. Edward Kennedy would've raised the rate to $6.25 an hour.
WASHINGTON (AP) -- Senate proposals to raise the minimum wage were rejected Wednesday, making it unlikely that the lowest allowable wage, $5.15 an hour since 1997, will rise in the foreseeable future.
A labor-backed bill by Sen. Edward Kennedy would have raised the minimum to $6.25 over an 18-month period. A Republican counterproposal would have combined the same $1.10 increase with various breaks and exemptions for small businesses.
The Kennedy amendment to a spending bill went down 51-47, and the GOP alternative 57-42. Under a Senate agreement, they would have needed 60 votes for approval.
Kennedy, D-Mass., said Hurricane Katrina demonstrated the depth of poverty in the country and he pointed out that a single parent with two children working a minimum wage earns $10,700 a year, $4,500 below the poverty line.
He said it was "absolutely unconscionable" that in the same period that Congress has denied a minimum wage increase, lawmakers have voted themselves seven pay raises worth $28,000.
GOP arguments
But Republican opponents, echoing the arguments of business groups, said higher minimum wages can work against the poor if they force small businesses to cut payrolls or go out of business.
"Mandated hikes in the minimum wage do not cure poverty and they clearly do not create jobs," said Sen. Mike Enzi, R-Wyo., who offered the Republican alternative.
White House spokesman Scott McClellan, asked Wednesday about Kennedy's measure, said President Bush "believes that we should look at having a reasonable increase in the minimum wage. ... But we need to make sure that, as we do that, that it is not a step that hurts small business or prices people out of the job market."
Enzi's proposal would provide tax and regulatory relief for small business, permit tips to be credited in complying with minimum-wage increases and expand the small business exemption from the Fair Labor Standards Act.
It also would have put into law a "flextime" system, opposed by organized labor as an assault on overtime pay, under which workers could work more in one week and take time off the next.
Both proposals, amendments to a fiscal 2006 spending bill, needed 60 votes to pass.
Changes to proposal
Kennedy, who has campaigned relentlessly for a minimum wage increase, picked up one vote from the 46 votes for a similar measure in March. On Tuesday he modified his proposal, which originally called for a $2.15 increase over 26 months, in hopes of attracting more Republicans.