Saturday, April 17, 2004
Copyright © Las Vegas Review-Journal

Proposal would raise minimum wage to $6.15

Critic says move designed to draw voters to polls in November

CARSON CITY -- The state AFL-CIO launched a petition drive Friday to raise the minimum wage in Nevada to $6.15 per hour, a $1 per hour increase.

The union's secretary-treasurer, Danny Thompson, filed documents with the secretary of state's office needed before signatures can be collected.

The proposal, which would amend the state constitution, would need voter approval in November and again in 2006 before it could go into effect.

Exclusions from the $1-an-hour increase would be given to companies that provide health care insurance for employees.

Employees under age 18 also would be exempt from the increase.

"This is something we have been talking about for months," said Gail Tuzzolo, a consultant to the AFL-CIO. "People cannot understand how you can live on $5.15 an hour in Las Vegas."

"This campaign seeks to raise the quality of life for our most vulnerable citizens," said Thompson. "It's about basic fairness."

However, one critic of the proposal said most stores in Nevada already pay more than the $5.15-an-hour minimum wage, and suggested the move might be designed to get people to the polls in November.

"I don't know many companies in the state of Nevada that pay the minimum wage, except for some casinos," said Mary Lau, executive director of the Retail Association of Nevada. "I question if this one is that necessary."

Lau added fast food restaurants, retail stores and other traditionally low-paying businesses compete with each other for workers, and as a result offer better wages. Most also provide health insurance, she said.

She speculated that Thompson, a former Democratic assemblyman, might be trying to put a proposal on the November ballot designed to draw voters to the polls.

California has a minimum wage of $6.75 per hour, with an $8.10-per-hour minimum wage in San Francisco. Arizona does not have a minimum wage law, but under federal law the minimum wage is set there, and in other states without a law, at $5.15.

Twelve states have laws that set their minimum wages at higher rates than the federal minium of $5.15 per hour, established in 1997.

Tuzzolo said an organization called Raise the Minimum Wage of Working Nevadans has been created for the petition drive.

Besides the AFL-CIO, she said supporters include the Progressive Leadership Alliance of Nevada. Other organizations are expected to join.

To qualify for a spot on the election ballot, the organizers need to gather 51,234 valid signatures by June 15.

Tuzzolo doubts that gathering enough signatures will be a problem since unions have 165,000 members in Nevada "and everyone is psyched up about it."

If they find voluntary petition gathering is slow, she said they will hire paid petition gatherers.

Tuzzolo said members of Congress are talking about raising the minimum wage to $6.25 per hour, although approval might be some time away. If the federal government raised the minimum wage, then the Nevada petition calls for the minimum wage in Nevada to be $1.10 per hour higher than the federal rate.

"I have talked to some business people who want the minimum wage raised, too," Tuzzolo said. "We see a lot of business people with us."

She added that as far as she knows, Nevada never has had a minimum wage higher than the federal minimum wage.

The Nevada Legislature has been reluctant to boost the minimum wage above the federal mark. There have been several unsuccessful efforts to pass such a law.

While on the surface the latest proposal does not seem egregious, Lau questioned whether there would be unintended consequences that hurt some business.

"Sometimes plans with well-intentioned aims end up hurting employees and costing jobs," she said.

The AFL-CIO estimated 50,000 workers in Nevada make the federal requirement of $5.15 an hour.

It said other workers earning up to $6.15 an hour would also see an increase if the measure is successful.

The Associated Press contributed to this report.