Emanuel creates panel to study increasing city’s minimum wage
BY FRAN SPIELMAN City Hall Reporter May 20, 2014 12:24AM
Mayor Rahm Emanuel has appointed a panel to look at ways to raise the city's minimum wage. | Sun-Times File Photo
Updated: June 23, 2014 2:46PM
Chicago would raise its minimum wage and tie future increases to the cost-of-living under a mayoral plan in the works to address the vexing problem of income inequality.
Tired of waiting for the state and federal governments to act, Mayor Rahm Emanuel on Monday asked 17 business, labor, civic and political leaders to take on the issue and draft a Chicago-only plan within 45 days.
The panel will be co-chaired by South Side Ald. Will Burns (4th) and by John Bouman, president of the Sargent Shriver Center on Poverty Law.
Members include representatives from business opposed to the idea as well as labor champions of a Chicago increase. The group will hold its first meeting May 28, then set up a schedule of public hearings across the city.
“The mayor believes Chicago workers deserve a living wage and feels we’ve waited for a very long time for the state and federal government to act. But, we have to do it in a way that’s responsible to small business,” David Spielfogel, a senior adviser to the mayor, said Monday.
“There are plenty of studies out there that show a strong minimum wage is actually beneficial to small business and the economy. In order to keep Chicago competitive, we need to be sure everyone has a shot at the middle class. . . . The mayor wants to see the minimum wage increased and eventually tied to inflation so it doesn’t become a political football every 10 years.”
The minimum wage is $7.25 an hour at the federal level and $8.25 in Illinois.
Gov. Pat Quinn wants to raise the state’s minimum wage to $10.65 — in part, to capitalize on GOP gubernatorial candidate Bruce Rauner’s waffling on the issue.
House Speaker Michael Madigan (D-Chicago) is trying to push through an advisory referendum that would ask voters who go to the polls in November whether the state’s minimum wage should be increased to $10 an hour.
Burns said the goal of the Chicago panel is to find a way to lift up the city’s lowest-paid employees “over time” without serving as a disincentive to business.
“Wages have not gone up for most people since the Great Recession. Workers who found jobs ended up making less. We want to look at a minimum wage that would be appropriate for Chicago, help move more people out of poverty and help reduce income inequality. That’s why you have to have business at the table — so they can partner with us in figuring this out,” the alderman said.
“The goal here is to have . . . a process by which business, labor, civic organizations and aldermen figure what the city’s minimum wage should be, what workers should be impacted by it and how to implement it over time.”
Burns pointed to the “income inequality commission” in Seattle that culminated in Mayor Ed Murray’s plan to raise the minimum wage to $15 an hour, among the highest in the nation.
The Seattle plan would give businesses with fewer than 500 employees seven years to comply and larger businesses three years. After that, increases would be tied to inflation.
“They came up with a way to increase the minimum wage for the lowest-paid workers with business at the table. We can do the same here . . . based on the size of the company, what contributions they make to health care and do it over time,” Burns said.
In 2006, the City Council voted 35-to-14 to require Wal-Mart and other “big box” retailing giants to pay at least $13 an hour in wages and benefits by 2010.
Six weeks later, then Mayor Richard M. Daley killed the ordinance spawned by Wal-Mart’s entry into the Chicago market with his first-ever veto and made it stick by winning three crossover votes. That prompted organized labor to spend millions to elect a more union-friendly Council.