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Sunday, December 27, 2005 The Battle for Minimum Wage By Stephanie Irwin Dayton Daily News
DAYTON | As energy costs rise, many say
there's a growing urgency in raising the minimum wage. Currently, the
federal minimum is $5.15 per hour and Ohio's minimum is set at $4.25.
Employers' lobbyists say raising the rate would be disastrous, but for the
state's working poor, the time for debate is running out. With consumer
prices and home heating costs on the rise, Ohio workers earning minimum
wage will be hitting food pantries to help fill in the financial gaps over
the holidays.
Nearly half of the able-bodied adults who
rely on donated food are low-wage workers, say officials at local food
banks.
In Ohio, they work as restaurant servers,
dishwashers, cooks, retail cashiers and clerks, cleaning maids, hotel
workers and child care workers, according to 2003 figures from the Bureau
of Labor Statistics.
"Because of wage stagnation, we have people
coming to us for the first time people who said last year they were
donating to our food banks, not using them," said Lisa Hamler-Fugitt,
director of the Ohio Association of Second Harvest Foodbanks in Columbus.
The majority of the 3 million pounds of food
distributed each year in the Miami Valley by the Foodbank at 427
Washington St. ends up on the tables of working families, the organization
said. Its 25,000-square foot warehouse supplies 90 pantries in three
counties; demand accumulates around the holidays.
"Seasonal workers earning minimum wage get
their hours cut, for example, and the paychecks start decreasing," said
the Foodbank's executive director, Burma Rai.
So when price spikes come along, minimum
wage workers are drastically and quickly affected. "They are using all of
their paychecks to buy fuel to get to work and some basics," said Amy
Hanauer, economist and executive director for Cleveland-based Policy
Matters Ohio. The nonpartisan research group studies unemployment, wage
distribution and other workforce policy matters.
While low-wage workers often qualify for
emergency assistance programs, "inflation will really hit them, even
though they might get those other kinds of benefits," she said.
That could make for a hard winter with the
double-whammy of increased home heating costs during the holiday shopping
season.
But the focus on making ends meet won't end
this year with Christmas dinner and natural gas bills.
Food pantries are also facing the possible
deluge of 5,700 unemployed Delphi workers, should local plants close as
part of the auto-parts maker's Chapter 11 restructuring.
"Everybody's really concerned about Delphi
workers and what will need to be done," Hamler-Fugitt said.
The Foodbank, Ohio chapter of the AFL-CIO
and the United Way are working on a plan modeled after other Ohio
communities that have survived plant closings, such as the Mahoning River
valley in Northeast Ohio, Hamler-Fugitt said.
"We've seen this all over Ohio, communities
that move from having world-class manufacturing industries to service
industries. And those service workers in those communities have survived
on charities," she said.
Meanwhile in Columbus, lawmakers and
business interests are winding up for a November 2006 ballot battle over
an increase in the state's minimum wage.
Two days before Thanksgiving, a coalition
called Ohioans for a Fair Minimum Wage announced an effort to raise the
state's minimum to $6.85.
Ohio is one of only two states with a
minimum wage lower than the federal minimum of $5.15 per hour.
Ohio's minimum has been $4.25 since 1991.
The coalition, led by the AFL-CIO, plans to
gather 322,000 signatures from registered voters to put a constitutional
amendment on the ballot.
If that happens, business interests who
historically oppose wage hikes will plan an aggressive campaign against
it, the Ohio Council of Retail Merchants told the Dayton Daily News last
week.
The number of workers earning less than the
proposed $6.85 is about 350,000-400,000, Hanauer estimated.
She helped research an April study on a
proposed state minimum wage increase to $7.15. The study found that the
real buying power of the federal minimum wage is at its lowest point for
the second time in 50 years.
The minimum wage bill, sponsored by Senate
Democratic leader C.J. Prentiss of Cleveland, is currently hung up in the
Senate.
A trip to the food pantry can provide one
person with a minimum of three meals a day for 5 days. "When you get laid off, you'll start to feel it in about 6-8 weeks.
Unfortunately, many think of charity food
relief as homelessness, soup kitchens," Rai said.
"But food pantries are going to be your
first line of defense." Contact Stephanie Irwin at 225-7404.
Dayton Daily News 11/27/2005
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Policy Matters Ohio 2912 Euclid Avenue Cleveland, OH 44115
ph: 216/931-9922 fax: 216/931-9924
http://www.policymattersohio.org
Policy Matters Ohio is a non-profit policy research organization founded in January 2000 to broaden the debate about economic policy in Ohio. Our mission is to conduct high-quality research promoting decisions which benefit our whole community. Given the challenges of a rapidly-changing economic system, rising wage inequality, new issues in education and changes in the way work is organized, it is imperative that Ohio workers have a voice in the economic debate.
Policy Matters provides real-world analysis focused on issues that matter to low- and middle-income workers in Ohio. Our findings are accessible to the public, the media, and policy makers. We hope to strengthen democracy by providing Ohio's citizens with the essential tools to participate in the public discussion on the economy. We believe this will result in economic policies that better reflect the public interest.