AFL-CIO leader opposes allowing vote on minimum-wage repeal

CARSON CITY -- The head of the state AFL-CIO delivered a thundering address Wednesday opposing a proposal that would allow voters to decide whether to repeal Nevada's minimum wage.

"This is the law of the land today because of the people of the state of Nevada," said Danny Thompson, the union's secretary-treasurer. "It received more votes in (two) elections than any other issue on the ballot. To come and say undo it is a slap in the face of the people of Nevada."

He asked the Senate Commerce, Labor and Energy Committee to kill Senate Joint Resolution 2.

The proposal by state Sen. Joe Hardy, R-Boulder City, calls for repealing the state constitutional amendment that sets Nevada's minimum wage, now $8.25 per hour, at $1 more than the federal minimum wage.

For the constitution to be changed, legislators would have to approve the resolution this session and again in 2013, then voters would have to approve it in 2014.

From comments expressed by legislators Wednesday, it would appear Hardy's resolution will have a hard time being approved by the Democrat-dominated committee.

At one point, Chairman Mike Schneider, D-Las Vegas, pointed out that businesses in Nevada are not charged income taxes, which is true in all but four other states.

He made the comment after witnesses said the state's minimum wage is hurting companies trying to survive the recession.

State Sen. James Settelmeyer, R-Minden, challenged Thompson, noting that all the resolution does is let voters decide whether to repeal the state's minimum wage.

"I don't understand what is the problem of letting it go to a vote of the people," Settelmeyer said. "They may make a different decision."

But Settelmeyer said after the meeting that he doubts there is support in the committee to adopt the resolution.

About 68.4 percent of voters in 2004 backed the higher minimum wage. In 2006, the proposal was backed by 68.7 percent of voters.

Thompson said his union used the initiative petition process to get the issue before voters because legislators refused to back their proposal to accomplish the same goal.

Given that Nevada is now in an economic recession, Thompson predicted even stronger voter support if it were on the ballot again.

Settelmeyer questioned whether that would happen and asked Thompson to put this theory to a public vote.

Thompson said he normally does not favor using the initiative petition process to force proposals into law, but he warned legislators that the device might be used again if they don't approve measures needed to adequately fund state government.

"I would say if you don't solve this budget problem, then the budget is going to be solved by this process," said Thompson, a former Democratic assemblyman from Henderson.

The Las Vegas and Reno-Sparks chambers of commerce, the Independent American Party and other conservative groups supported Hardy's resolution.

When Nevada has the highest unemployment rate in the nation, "making labor more expensive is not the best way to create jobs," said Tray Abney, a lobbyist for the Reno-Sparks chamber.

Hardy himself testified that Nevada is one of 14 states, including California, that have minimum wages above the federal minimum wage.

"We are pricing ourselves out of the market to attract business and jobs to Nevada," Hardy said.

Instead of being like California, Hardy said, Nevada should be like Texas, which uses the federal minimum wage.

He also said Nevada's minimum wage affects the "viability" of businesses and often is a reason why teenagers cannot get a job.

Contact Capital Bureau Chief Ed Vogel at evogel@reviewjournal.com or 775-687-3901.