California’s $6.75 per hour minimum wage will rise by $1.25,less than that sought by Democrats but more than Gov. Schwarzenegger had originally wanted,after the two sides reached a deal last week.
The raise is the first since 2004 and will take effect in two stages, rising 75 cents on Jan. 1 and another 50 cents at the start of 2008.
The federal minimum wage is $5.15 an hour.
The governor originally proposed that the wage increase $1 an hour. He agreed to the $1.25 rise after Democratic leaders dropped their demands to index the wage to inflation.
“I have always said that when the economy was ready, we should reward the efforts of California’s hard working families by raising our minimum wage,” Schwarzenegger said. “This is another sign California is coming back stronger than ever and exciting news for the people of our state.”
Despite the compromise, Art Pulaski, executive secretary-treasurer of the California Labor Federation, criticized the governor for the years it took to achieve a compromise agreement.
“The long wait for an increase has hurt workers,” said Art Pulaski, Executive Secretary-Treasurer of the California Labor Federation. “Three years of inaction by Arnold Schwarzenegger caused the minimum wage to lose its purchasing power.”
The governor has been widely seen as moving his policies toward the center as he approaches his November gubernatorial contest with Democratic state Treasurer Phil Angelides.
The Democrat candidate has said he would support adjusting the minimum wage to account for inflation.
The California Chamber of Commerce has opposed any increase in the minimum wage, but a spokesman for the group lauded Schwarzenegger for “standing firm” against tying the minimum wage to inflation.
“Raising the minimum wage is one thing, but locking in automatic increases year-after-year, regardless of the condition of the economy or the health of a business, is another entirely,” spokesman Vince Sollitto said.
,Los Angeles Business Journal
