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Boost in Minimum Wage Long Overdue

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Labor Secretary William E. Brock III won’t win any Brownie points from corporate executives for his recent remarks discounting the effect that an increase in the minimum wage would have on inflation.

Companies have been fighting the minimum wage since the first 25-cent minimum went into effect in 1938. And every time Congress gets around to increasing it, representatives of business warn that it will trigger serious inflation and more unemployment because firms won’t hire as many workers if they have to pay them more.

For the record:

12:00 a.m. March 12, 1987 FOR THE RECORD
Los Angeles Times Thursday March 12, 1987 Home Edition Business Part 4 Page 2 Column 3 Financial Desk 1 inches; 24 words Type of Material: Correction
Two paragraphs at the end of the first item in Harry Bernstein’s Labor column Wednesday should not have been included. They related to a separate item that did not appear.

Congress is considering a boost in the current $3.35 hourly minimum, and Brock’s remark undercuts the usual argument by business against an increase.

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But the secretary should get at least a few weak cheers from the 6.7 million Americans who are now paid the $3.35-an-hour minimum, or less (some employers defy the minimum wage law, and others are exempt from it), which means that their wages are well below the poverty level even if they work full time.

Brock might also get a few nods of appreciation from some of the additional 6 million workers who are paid only slightly above the minimum--from $3.36 to $4 an hour--and who could be helped if the minimum is raised.

But those workers below poverty level can give him only limited praise because he is giving only limited assistance to the drive for an increase in the minimum wage. While he has weakened the arguments against a hike, he is still unwilling to endorse one.

As of now, Brock says that the Administration has not agreed on its minimum wage position and that he has an “open mind” on the issue. That neutral attitude from a member of the President’s Cabinet won’t hurt advocates of the minimum wage hike, and that is probably all they can expect from a loyal member of the Administration.

Others in the Reagan Administration, and reportedly the President himself, go along with the business community’s opposition to a raise. Even if they do finally stop their fight against it, they will renew their demand for a “youth sub-minimum” that has almost no chance of getting congressional approval.

The trouble with a lower minimum for teen-agers is that employers looking for cheap labor might hire youngsters instead of family breadwinners for unskilled work.

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The need for an increase is obvious. The buying power of the dollar has fallen 28% since the last minimum wage increase in 1981.

Labor economist Sar Levitan says that even if there is a fractional loss of jobs because a few employers won’t pay the higher minimum, the loss will be overwhelmingly offset by the gain made by millions of poor workers.

And sounding like Brock, Levitan, who is one of the nation’s most respected labor economists, says a boost in the minimum wage could slightly increase inflation, but the effect on the economy would be negligible.

Congress is likely to vote for an increase, but the debate will center on how much it should be. The minimum will have to go to $4.61 an hour for its purchasing power to reach the level of 1978, when the minimum wage was $2.65.

Those who get the increase aren’t going to be well off, but at least they will be slightly above the poverty level, which should be a minimum goal for the country’s workers.

Top officers of unions affiliated with the federation are under no national AFL-CIO restraints, and union presidents sponsoring the April 25 demonstrations include:

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Morton Bahr of the Communication Workers of America; Owen Bieber, United Auto Workers; Kenneth T. Blaylock, American Federation of Government Employees; William H. Bywater, International Union of Electrical Workers; Cesar Chavez, United Farm Workers; Mary H. Futrell, National Education Assn.; Gerald McEntee, American Federation of State, County & Municipal Employees; Charles A. Perlik Jr., Newspaper Guild; Jacob Sheinkman, Amalgamated Clothing & Textile Workers; John Sweeney, Service Employees International Union; William H. Wynn, United Food and Commercial Workers, and William Winpisinger, International Assn. of Machinists.

Kirkland Can Count on Keeping His Job

Lane Kirkland is unequivocal about his future with the AFL-CIO: He will run for reelection as president of the federation at its convention in October.

And as of now, at least, it looks as though he will win without facing any serious opposition.

Kirkland, who will celebrate his 65th birthday Thursday, has just overcome a far more dangerous opponent, cancer. He is spending several weeks recuperating from a Feb. 24 operation to remove a malignant kidney tumor. The surgery “went exceedingly well,” his doctors report, and they were confident the cancer had not spread elsewhere.

There was added concern about this operation because 15 years ago, Kirkland’s other kidney was removed. But, as Kirkland put it, “other people are functioning normally with far less kidney” than he has.

The unwillingness of other union officials to challenge Kirkland for the job as the top U.S. labor leader stems partly from his long experience. He was executive assistant to former AFL-CIO President George Meany from 1961 to 1969. Kirkland was then elected secretary-treasurer, the second-highest position in the federation, and held that post for 10 years until he succeeded Meany in 1979.

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But Kirkland’s current job security is primarily based on the unprecedented unity he has brought to America’s unions by providing leadership through collegiality. Unlike Meany, Kirkland shares authority with his colleagues and he usually gets a consensus by encouraging full discussion of all issues, even highly controversial ones that have sharply divided union leaders.

Kirkland has initiated innovative programs for the 13.5-million-member federation. For example, in 1983 he initiated the granting of pre-primary endorsements to presidential candidates who win the support of two-thirds of the delegates to the AFL-CIO convention. He also has started a host of new union services, such as low-interest credit cards and low-cost legal assistance.

Now that his surgery has been completed, Kirkland’s hold on the AFL-CIO presidency should be secure for as long as he wants it.

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