State senate OKs $11 minimum wage

Written By Unknown on Sabtu, 14 Juni 2014 | 00.32

Business groups fear it will be harder to make it in Massachusetts if a compromise bill passed by the Senate that would hike the state's minimum wage to the highest in the country is signed into law.

Top House and Senate negotiators struck a deal Wednesday to raise the current $8 per hour minimum wage to $11 per hour by 2017, and the Senate quickly passed it yesterday on a 35-4 vote. The bill does not include a Senate proposal that would have tied the hike to inflation. And it goes beyond a House proposal for a $10.50 per hour wage, without automatic increases for inflation. The House is expected to vote on the compromise bill next week.

"Too many people are trying to live and raise a family in Massachusetts on the current minimum wage and failing," Senate President Therese Murray said. "These changes will make a real difference in the lives of our residents and I am proud of the Legislature for this great accomplishment. But, we can't stop here."

But Jon Hurst, president of the Retailers Association of Massachusetts, warned the minimum wage hike could drive many stores out of business.

"I am really concerned about the future and viability of thousands of small businesses," Hurst said. "It's a 38 percent increase in the minimum wage, far above any other state."

While Associated Industries of Massachusetts viewed the lack of indexing to inflation as a small victory, a spokesman said the higher wage will hurt businesses.

"There's plenty of economic reasons not to raise the wage," AIM spokesman Chris Geehern said.

But Jim Klocke, executive vice-president of the Greater Boston Chamber of Commerce, said the deal is fair because it balances the higher wage with unemployment insurance reform for business owners.

Business for a Fair Minimum Wage, a Boston-based network of business owners and executives, applauded the compromise bill.

"A higher minimum wage will boost sales, keep more dollars circulating in our local economy, and reduce the strain on our social safety net caused by poverty wages," said Holly Sklar, the group's director.

Deb Fastino, co-chairman of Raise Up Massachusetts, called the bill a "positive step," but said the group for now would keep collecting signatures for a November ballot question to increase the minimum wage to $10.50.

"It has to pass ... through the House and get to the governor, and if all of this happens before the deadline, then we will make our decision," she said.


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