Wage boost: So far, so good, advocates say

By Sam Carter , Correspondent
Gloucester Daily Times

January 16, 2007 12:07 pm

Eileen Ryan says Massachusetts legislators have always been aware that the commonwealth's lowest-paid breadwinners could use a bump up in their wages.

But prior to last summer's legislative battle with former Gov. Mitt Romney over a state increase in the minimum wage, Ryan says state representatives and senators either weren't interested in helping low-income residents or hadn't been pushed enough by constituents and community action groups.

"They knew there were people in need," Ryan said. "So we spoke with legislators and pressured them."

Ryan, 43, who lives in Riverdale Park in Gloucester, was referring to the Essex County Community Organization, or ECCO, a faith-based organization that undertakes and organizes projects for social change.

ECCO, based in Lynn, has worked in the past on projects to improve state-funded family housing; procured and installed crosswalks and street lights for the Commons of Lynn, a condominium complex; as well as helped local people get training in medical fields.

But one of ECCO's highest achievements so far has been its work with state lawmakers to raise the minimum wage from $6.75 per hour, an amount that hadn't changed since 2001, to the present $7.50 and next year's increase to $8.


Massachusetts now has one of the top minimum wage rates in the country. If inflation stays within projected levels over the next few years, the state is set to have the highest minimum next year, just above Washington's $7.97 and Oregon's $7.83.

"There'd been a need (for the increase)," Loretta Peres, 46, of Gloucester said. "When you live check-to-check it's tough."

Peres, who has been involved with ECCO, said there are still local people who can't afford health insurance or child care.

"Any little bit will help," Peres said. "But just one illness can get you in the hospital and blow you out."

The Massachusetts Budget and Policy Center in Boston estimates that next year's bump up to $8 per hour will increase the pay of 315,000 low-wage workers. This includes two sets of workers. The first set, which is projected to include 107,000 workers, earn less than $8 per hour and will see a direct increase in pay. The second set, expected to include 208,000, consists of workers who earn slightly more than $8 per hour and are expected to see wage increases due to a "spillover" or "ripple" effect as employers attempt to maintain wage scales that were in place before minimum wage hikes.



Opponents have said increasing the minimum wage would force smaller businesses to lay off workers and have a negative impact on small-business competition. But the Massachusetts Budget and Policy Center says that is wrong.

"I've only heard good things so far," Ryan said. She added that she's heard from both small-business employees and owners and neither group has complained about the wage increase.

Ryan said the wage increase garners not only more income for minimum wage earners, but also a better sense of being.

"I think it's a benefit to morale if nothing else," she said. "Now at least (low-income workers) know they're worth something."

Beginning Jan. 1, the state's minimum wage increased to $7.50 an hour. It was the first time since 2001 that state lawmakers boosted the rate. Now a person working 40 hours a week at minimum wage will earn $300 per week - or $15,600 a year - before taxes.

Here's a look at the pay rate through the years in Massachusetts:

* 1938: 25 cents an hour, federal minimum wage adopted

* 1956: $1

* 1974: $2



* 1980: $3.10

* 1991: $4.25

* 1997: $5.15

* 1997: $5.25

* 2001: $6.75

* 2007: $7.50

* 2008: $8

Sources: U.S. Department of Labor, Massachusetts Department of Labor.

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