Kennedy Urges Smaller Hike in Minimum Wage

Sen. Edward M. Kennedy (D-Mass.) unveiled a scaled-down proposal Wednesday to increase the federal minimum wage $1.20 to $4.55 an hour over the next three years.

The labor-supported proposal came as the Senate Labor Committee began deliberations on Kennedy’s earlier minimum wage bill. His original bill would have boosted the minimum wage, now at $3.35 an hour, by 50 cents next year, 40 cents in 1990 and 40 cents in 1991, with automatic increases tied to inflation to keep it at 50% of the average wage nationally.

The House Labor Committee already has completed action on a measure that would raise the federal minimum wage to $5.05 an hour over the next four years.

In introducing his substitute bill, Kennedy said the minimum wage has fallen to its lowest point, in relation to average wages, since its inception 50 years ago, with the $3.35 rate representing 36% of average hourly earnings.

He said the minimum historically has been half the hourly average.

However, Sen. Strom Thurmond (R-S.C.) said he was opposed to a significant increase in the minimum wage because “it is inflationary, it reduces entry-level and part-time jobs for teen-agers and unskilled workers, as well as decreases services to consumers.”