A new bill that would restrict Wisconsin cities from raising minimum wages could thwart the efforts of Eau Claire politicians and citizens to raise the city’s minimum wage.
On Tuesday, the state Assembly voted 58-37 in favor of a bill aimed at restricting Wisconsin cities from setting their own minimum wages.
Taking away cities’ right to adjust their own minimum wage would hurt communities, said senior Andrew Werthmann, a Student Senator and co-founder of the Eau Claire citizen action group, Citizens for a Fair Wage.
The city needs to raise its minimum wage so lower-income citizens will be able to afford goods and services, he said.
Eau Claire City Council member Toby Biegel is currently proposing a minimum wage increase in Eau Claire. His plan asks for the city to incrementally raise minimum wage by $1.50 to $6.65 by July 1, 2006.
Biegel’s minimum wage proposal will be introduced to the City Council on Tuesday.
Biegel represents District 3, which encompasses UW-Eau Claire. He could not be reached for comment Friday or Sunday.
UW-Eau Claire’s Student Senate voted in favor of a resolution supporting a minimum wage increase in the city by a vote of 14-13-1 on May 2. A vocal minority spoke out against raising minimum wage in Eau Claire, including Student Senate President Aaron Olson, who stepped down as chair at the meeting to debate and vote on the issue.
“(Raising the minimum wage) has to be done right, and doing it at a local level at a time when the economy is recessing is not really the best game plan,” he said.
Olson said his primary concern with the proposed wage increase for Eau Claire is it would ultimately hurt students.
“By raising cities’ minimum wage, the only people really who will be hurt are students at the university,” he said.
Businesses can make up for minimum wage increases by passing the cost back to customers, but the university does not have that option, Olson said. The increased minimum wage would likely force the university to either scale back on services offered to students or on the number of jobs offered to students.
Werthmann disagreed, noting that the increase in minimum wage would likely help students.
“Students are citizens like everyone else,” he said. “While there may be a few jobs cut here and there on campus, we need to look at the bigger picture. There are many students who work off campus. And those who work on campus will be making more money, which well help them pay off loans and take care of tuition.”
Olson said while he is against the current proposal, he believes cities should retain the right to increase minimum wages if they believe it is necessary.
The minimum wage in most of Wisconsin is at the national average of $5.15. Some cities, including Madison, Milwaukee and La Crosse have elected to increase their minimum wage above the state minimum. For example, a Madison ordinance raised the city’s minimum wage to $5.70 this year, and will ultimately raise the wage to $7.75 by 2008.
Dane County Circuit Judge Maryann Sumi upheld the ordinance to raise Madison’s minimum wage above the state level, ruling that cities have broad powers when protecting citizens’ welfare, after a lawsuit was filed looking to wipe out the higher wage.
Werthmann agreed, “Different economic factors impact different cities.”
– The Associated Press contributed to this report.