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Issue 1465 April 22, 2012
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MINIMUM WAGES: Future Michigan Increases Keyed to Consumer Price Index

Republican-Sponsored Bill Opposed by Senators Mike Green, John Moolenar

October 11, 2014       Leave a Comment
By: Dave Rogers

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When it comes to minimum wage, you can't even tell the players with the scorecard.
 

Remember the old baseball hawker's call: "You can't tell the players without a scorecard."

Well, these days in Michigan, you can't even tell the players with the scorecard.

Michigan Republicans got out in front of the minimum wage issue, avoiding pressure to go immediately to $10.10 per hour, by front-loading a gradual hike to $9.25 per hour.

But it will take four years to get to that pay level. And some Republicans defied their party by voting "no."

The state's hourly minimum wage will increase in phases from $7.40 until it reaches $9.25 in 2018.

Even so, Senator Mike Green, R-Mayville, who boasts of his workingman background in a "He's One of Us" campaign literature, did not support his party on this bill.

Of course neither did Sen. John Moolenar, R-Midland, Rep. Kevin Cotter, R-Mt. Pleasant, or Rep. Tim Kelly, R-Saginaw Township, all "no" votes, while Sen. Roger Kahn, R-Saginaw Township, and Republican Jim Stamas of Midland voted "yes" for the minimum wage changes.

Gov. Rick Snyder signed it into law, commenting: "I commend my partners in the Legislature for finding common ground on a bill that will help Michigan workers and protect our state's growing economy," said Snyder.

The law will also tie the minimum wage to inflation, so that it will continue to gradually increase after 2018.

A similar minimum wage hike plan was put forward last November by Democratic gubernatorial candidate Mark Schauer.

"I felt at the time that increasing the minimum wage was a way to help build our economy from the bottom up and the middle out, as opposed to Rick Snyder's tax cuts for folks at the top," Schauer said, commenting to mlive.com:

"At that time, Rick Snyder said raising the minimum wage was not a burning issue. It took him six months and the prospect of a ballot proposal to change is mind. I always say, this will give a raise to one million people, which is a great thing."

Bay City Mayor Chris Shannon, who is rumored to have ambitions to succeed State Rep. Charles Brunner when Brunner is term limited in two years, is prominently pictured in Green's brochure stating "strong support for Green."

The implication raised by the ad is that Shannon may run as a Republican in 2016, seeking to snatch a seat from the Democrats who have held it for many years.

"Without Senator Green's hard work and support, we could not have made the infrastructure improvements that made the Uptown development and the hundreds of jobs it is bringing to our area possible," Mayor Shannon was quoted as saying.

Popular accordion-playing Democrat Ron Mindykowski, who is seen giving Green a tussle -- especially in Bay County -- may also be expected to gear up for a run at the state house should he fall short for a senate seat in November.

"Ron is angry about all of the tax hikes passed over the last four years, states his website www.mindyforsenate. "In the Senate, Ron will fight to cut taxes for Michigan's middle class families and seniors, including eliminating the new retirement tax."

"As introduced the bill was seen as a Republican gambit to preempt a ballot proposal mandating that employers pay even higher minimums," stated the Mackinac Center for Public Policy. "It became a bipartisan gambit after concessions including inflation indexing brought most Democrats on board."

Highlights of the minimum wage bill sponsored by Rep. Randy Richardville, R-Monroe:

Increases the minimum hourly wage rate from $7.40 to the following (Sec. 4):

$8.15 beginning September 1, 2014;

$8.50 beginning January 1, 2016;

$8.90 beginning January 1, 2017; and

$9.25 beginning January 1, 2018.

Increases the minimum hourly wage rate to reflect the average annual percentage change in the Consumer Price Index, but shall not exceed a 3.5 percent annual increase, beginning January 2019 (Sec. 4).

Specifies that an increase in the minimum hourly wage rate, determined by the annual percent change in Consumer Price Index, will not take effect if the unemployment rate is at least 8.5 percent for the year preceding the year for the prescribed increase (Sec. 4).

Increases the minimum hourly wage rate for employees who receive tips from $2.65 to 38 percent of the minimum hourly wage rate, beginning September 1, 2014 (Sec. 4).

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Dave Rogers

Dave Rogers is a former editorial writer for the Bay City Times and a widely read,
respected journalist/writer in and around Bay City.
(Contact Dave Via Email at carraroe@aol.com)

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