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Business interests and advocates for the poor and labor unions are divided over a proposal to increase the minimum wage from the current $5.25 an hour. Minimum-wage hike
discussed at LegislatureBy Lisa Asato
Star-BulletinAt a hearing this morning at the state Capitol, an AFL-CIO representative said the labor group supports the increase and believes increases in Hawaii's minimum wage should be tied to increases in the federal minimum wage which is currently $5.15 an hour.
Terry Lau said the minimum-wage-earning population makes up 2 percent of the civilian labor force.
"Because of the proportionately small number of minimum wage workers, we believe the effects of such an increase would be negligible on our economy," Lau said. "In fact, after the last (minimum wage) increase in 1993, the inflation rate dropped and jobs in the retail trade industry, which comprises the bulk of minimum wage workers, actually rose."
The administration's bill proposes increasing the minimum wage from $5.25 to $5.95 per hour starting July 1, 2001, to $6.10 in 2002 and to $6.20 in 2003.
Asked by Rep. Mark Moses (R, Kunia) whether the time was right for a minimum wage hike, Lau replied that local economists have indicated the economy is on an upturn.
"A minimum wage hike is a good idea at this time," he said.
The Chamber of Commerce of Hawaii opposes "any and all increases in the minimum wage," said Paul Saito, chairman of the chamber's human resources committee.
Given the economic doldrums of the past decade, Saito said, Hawaii's businesses are at a critical point and "a minimum wage increase at this time will greatly hamper the efforts made over the past three years to turn the economy around."
The bills supporters included women's groups that cited statistics saying women make up two-thirds of minimum wage earners and that at least 62 percent of these women are their children's sole supporters.
Department of Human Services Director Susan Chandler said that a full-time employee who makes minimum wage nets only $15 per month more than the state's maximum financial assistance benefit of $712 per month for a family of three.
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