On January 27, 1998, Senator Edward M. Kennedy (D-MA) and Rep. David E. Bonior (D-MI) introduced the Fair Minimum Wage Act of 1998 (S. 1573/H.R. 3100). The legislation would have increased the minimum wage by 50 cents in 1998, 1999, and 2000 and in subsequent years, indexed it to inflation.

Following discussions with the White House and congressional Democratic leaders, Senator Kennedy and Rep. Bonior agreed to modify their proposal. The new compromise bill, still named the Fair Minimum Wage Act of 1998, but with different bill numbers (S. 1805 and H.R. 3510), was introduced on March 19, 1998. The new bill would increase the minimum wage by 50 cents in 1999 and 2000 to $6.15 an hour. Supporters felt the compromise was necessary to increase the chances of enactment.

While NASW is disappointed with the scaled-back proposal, particularly the loss of future indexing, the association remains committed to any effort that moves toward creating "living wages" for individuals and families.

Congressional leaders warn that enacting even the new compromise bill will be difficult this year. Therefore, it is critical that if your Members of Congress are not yet cosponsors of the new compromise bill and you have not yet contacted them to urge their support for a minimum wage increase, NOW is the time.

While no timetable for consideration of the bill has been set, Senator Kennedy may pursue a strategy he used successfully to pass the last minimum wage increase. The Senator attempted to attach the minimum wage proposal to bills debated on the Senate floor that were slated for passage by the Republican leadership. The first attempt in this year’s campaign may take place following the spring recess (April 4-19, 1998).

ADVOCACY TOOLS

Arkansas: Bumpers
California: Boxer, Feinstein
Connecticut: Dodd
Hawaii: Inouye
Illinois: Durbin, Moseley-Braun
Iowa: Harkin
Maryland: Mikulski, Sarbanes
Massachusetts: Kennedy (sponsor), Kerry
Michigan: Levin
Minnesota: Wellstone
New Jersey: Lautenberg, Torricelli
New York: Moynihan
Rhode Island: Reed
South Dakota: Daschle
Vermont: Leahy
West Virginia: Rockefeller
Wisconsin: Feingold

House Cosponsors (by state)

By District Visit. Many Members of Congress will spend time in their districts during the spring recess.

• The Senate will be in recess April 4-19.
• The House will be in recess April 2-20.
• Call you Members’ district or Washington offices (see how to access telephone numbers below) to schedule meetings (ask for the scheduler) or attend open forums in which you can ask for support for increasing the minimum wage.

By Telephone. Call the Capitol Switchboard and ask for your Member’s office.

• For Senators the number is: 202-224-3121.
• For Representatives: 202-225-3121.
• Or find direct line numbers (as well as fax numbers and District office telephone numbers) through NASW’s website: ‘www.socialworkers.org’. Click on "Links,"  find "Government & Advocacy," then click on "Contacting Congress."

When you call, ask to speak to the staff person handling the minimum wage issue. If staff is unavailable, leave a message on voice mail or with the receptionist urging the Member to cosponsor the Fair Minimum Wage Act.

• Address for all Senators

The Honorable (first name, last name)
United States Senate
Washington, DC 20510

Dear Senator (last name):

• Address for all Representatives

The Honorable (first name, last name)
U.S. House of Representatives
Washington, DC 20515

Dear Representative (last name):

By E-mail. Congressional offices, which have e-mail addresses, can be accessed through NASW’s website: ‘www.socialworkers.org’. Click on "Links," then "Government & Advocacy," and then "Contacting Congress."

As a professional social worker knowledgeable about the economic struggles faced by low-wage workers (or on behalf of the (number) members of the (state) Chapter of the National Association of Social Workers), I urge Senator (last name) or Representative (last name) to cosponsor the Fair Minimum Wage Act. Families headed by minimum wage workers who work full-time, full-year should not live below the federal poverty level, as they do now. The massive loss of jobs predicted prior to the last minimum wage increase failed to materialize. Instead, millions of workers and their families benefited. I hope the Senator (or Representative) will sign onto the bill and work to ensure that people who work hard, day in and day out, are fairly compensated.

Date

The Honorable (first name, last name)
United States Senate (or U.S. House of Representatives)
Washington, DC 20510 (or 20515)

Dear Senator (last name) (or Representative [last name]):

As a professional social worker (or on behalf of the (number) members of the (state) Chapter of the National Association of Social Workers), I urge Senator (last name) or Representative (last name) to join the effort to increase the federal minimum wage and become a cosponsor of the Fair Minimum Wage Act. Social workers have a long and accomplished history in working for systemic changes to achieve social, political, and economic justice and are supporting an increase in the minimum wage as part of that proud legacy.

The bill would increase the minimum wage by 50 cents in 1999 and 2000 to $6.15 an hour. The last increase in the minimum wage, to $5.15 an hour on September 1, 1996, benefited over 10 million workers and failed to result in increased unemployment as opponents had predicted. But even at $5.15 a hour, an employee working full-time, full-year still earns $2,900 below the federal poverty level for a family of three.

The year of 1998 is an ideal time to build on last year’s increase. The economy remains strong, but its benefits are not being distributed fairly. From 1979-1995 real family income increased by 26 percent for earners in the top 20 percent, but fell by nine percent for earners in the bottom 20 percent. As a result, more adults and families are being forced to seek emergency assistance. A recent study by Second Harvest, a nationwide network of food banks, found that 39 percent of households seeking emergency food aid had at least one member who was working.

As professional social workers, we believe that full-time, full-year workers earning the minimum wage should not be forced to raise their families in poverty. We believe welfare recipients who make the transition into minimum wage jobs should have a real chance to become "self-sufficient." We hope you will sign onto the bill and join the effort to ensure economic justice for this country’s working men and women and their families.

Sincerely,

Low-wage workers need a raise. Nationwide, soup kitchens, food pantries and homeless shelters are increasingly serving the working poor -- not just the unemployed. According to a recent study by Second Harvest, a nationwide network of food banks:

• In 1997, 39 percent of households seeking emergency food aid had at least one member who was working.
• Low-paying jobs are the most-frequently cited cause of hunger -- nearly half of those relying on emergency food aid do so because their earnings are too low.
• 86 percent of households receiving emergency food aid earn under $15,500 a year.
• 67 percent of households receiving emergency food aid earn less than $10,000 a year.

Child care aide and mother of three children in Philadelphia, Pennsylvania: "A dollar an hour probably doesn’t sound like a lot to many people, but to me and my children it would mean a real improvement in our lives."

Homecare worker and mother of two in Viola, Illinois: "Making $5.30 an hour, I literally live paycheck to paycheck. ... I might add that I do not receive any benefits through my job. I have no paid holidays off and when I am too sick to work, I don’t get paid. I also have no health insurance through my work and I cannot afford to buy my own health coverage. I am discouraged that after working nearly 60 hours each week I’m barely able to make ends meet. I sure hope Congress increases the minimum wage because I need the raise."

A full-time minimum wage earner earns $10,712 a year -- $2,900 below the poverty level for a family of three.

Increasing the minimum wage by $1 an hour only will restore its purchasing power to its mid-1970’s level. However, if there are no additional increases, by the year 2000 the real value of the minimum wage will be only $4.66 -- almost as low as it was when the 1996 increase was enacted. To have the purchasing power it had in 1968, the minimum wage would have to be $7.33 an hour today.

Twelve million Americans earning less than $6.15 an hour today would see a direct increase in their pay and another 8 million Americans earning between $6.15 and $7.15 an hour likely would benefit from the increase.

Sixty percent of minimum wage earners are women; nearly three-fourths are adults; three-fifths are the sole breadwinners in their families; and more than half work full time. The average minimum wage worker brings home half the family income.

Opponents typically claim an increase in the minimum wage will cause jobs to be lost and businesses to collapse. The fact is that in the time that has passed since the most recent increases in the federal minimum wage -- a 50-cent increase on October 1, 1996 and a 40-cent increase on September 1, 1997 -- employment has increased in all sectors of the population.

Since September 1996, 700,000 new retail jobs have been added, including 200,000 restaurant jobs. Overall, employment is at an all-time high. Overall unemployment is at an historically low rate -- 4.6 percent. Teenage unemployment rates have declined by 1.3 percentage points. Unemployment among African-Americans has declined by one percentage point.

Eric Sklar, CEO, Burrito Brothers, Inc. (Mexican fast food restaurant chain with nine stores in Washington, DC and Northern Virginia): "Since the last increase in the minimum wage passed, my company has doubled in size. This means fifty new jobs were created, many of them minimum wage jobs. We have increased our prices only once in the last three years. So, anecdotally and empirically, it is clear that increasing the minimum wage does not cost jobs or contribute to inflation. ... I want to help my minimum wage workers earn a decent living, but I can’t compete if my competitors are paying less. I just want a level playing field."

In a February 1998 letter to President Clinton, 16 economists cited the benefits of the previous increase in endorsing the latest proposal to raise the minimum wage: "We believe that the 1996 and 1997 increases had a beneficial effect not only on those whose earnings were increased by 90 cents an hour but also on the economy as a whole. Billions in added consumer demand helped fuel our expanding economy in those years."

Americans overwhelming support increasing the minimum wage.

• 76 percent support: Washington Post-ABC poll, January 1998.
• 77 percent support: Peter Hart Research poll, January 1998.
• 78 percent support: Los Angeles Times poll, February 1998.
• 80 percent support: Pew poll, February 1998.