A Boost for the Working Poor

Legislation to raise the federal minimum wage is moving slowly through Congress. For nearly 6 million workers the snail’s pace means a seventh year without a pay raise, another year of failing to keep up with inflation.

Most minimum-wage workers earn $3.35 an hour, which adds up to less than $7,000 annually--below the poverty level for all but a family of three. In six states, minimum-wage paychecks are higher than the national average; California’s new minimum wage, for example, which is to take effect July 1, is $4.25 an hour. That should be a reasonable rate for the entire nation.

Legislation that was introduced by Rep. Augustus F. Hawkins (D-Los Angeles) and Sen. Edward M. Kennedy (D-Mass.) would raise the federal minimum wage to $4.65 over the next three years. The Hawkins measure, which was amended in committee on Thursday, would provide an even bigger boost, to $5.05 an hour, as of Dec. 31, 1991. The higher rate would make a pay check worth more than a welfare check--at least for small families.

Senate committee action could come as early as the end of this month on the Kennedy bill. Quick approval would allow millions of families a higher standard of living, but only until inflation again overwhelmed the increase. Indexing would provide automatic pay raises and allow low-wage earners to keep pace with inflation. The Senate version calls for indexing by linking the minimum-wage rate to 50% of the average hourly wage as determined by the Bureau of Labor Statistics. That is fair and compassionate.

The House bill lost indexing on a subcommittee vote. Although the removal of that provision made the legislation more politically palatable, it was a blow to families that must make ends meet on the same pay checks year after year while the cost of just about everything goes up.

Buying power of the nation’s working poor has fallen 30% since Congress last raised the federal minimum wage in 1981. A fair and reasonable pay increase is not only long overdue, it should come with the built-in guarantee provided by indexing so that the poor Americans who are willing to work will not start falling behind again the very next time that prices increase.