Reagan Seeks $2.50 Wage for Summer Jobs

President Reagan on Monday resubmitted legislation to allow employers to pay wages of $2.50 an hour, below the federal minimum, during the summer, saying it would create 400,000 jobs.

At a Cabinet room gathering that included several mayors, Reagan urged that the $3.35 minimum wage be suspended for those under 20 years of age who are disadvantaged and unskilled. The subminimum wage rate would apply from May 1 to Sept. 30.

Meanwhile, Secretary of Labor-designate William E. Brock III said Monday that he supports a subminimum wage for teen-agers as a means to get them their first job, but admitted that organized labor has some legitimate concerns.

Organized Labor Opposed

Organized labor opposes the legislation on grounds that employers might eliminate the jobs of older workers who are being paid the minimum wage.

“This is the wrong idea at the wrong time for a discriminatory purpose,” AFL-CIO spokesman Rex Hardesty said. “If they pay cut-rate wages for youth, why not for women? Why not for blacks? The fact is, employers don’t create jobs out of the goodness of their hearts. Employers create jobs when there’s a demand.”

Labor has successfully blocked previous attempts by Reagan to have Congress pass the bill.

“The bill provides explicit protections for adult workers and previously hired youth,” Reagan said, “to ensure that they will not be adversely affected by the summer wage differential.”