Union urges minimum wage hike

Friday, April 16, 2004 | 11:01 a.m.

CARSON CITY -- The Nevada State AFL-CIO is launching a drive today for a constitutional amendment to require employers in the state to pay $1 an hour more than the federal minimum wage, which now stands at $5.15 an hour.

"It's just too low. People can't even eat off of it," Danny Thompson, executive director of the AFL-CIO, said.

Ray Bacon, executive director of the Nevada Manufacturers Association, opposed the plan.

"It would hurt certain businesses that are very competitive," he said. "Without dissecting it I don't want to comment further."

Christina Dugan, director of government affairs for the Las Vegas Chamber of Commerce, said the city's business community was "concerned" by the idea.

"I haven't seen the specifics of this plan, but there is a lot of statistical evidence that shows that higher wages really do decrease the number of jobs," Dugan said.

Because labor is the most expensive cost in an operation, business has typically been against raising the minimum wage. One argument for the hike that has resonated with many people is the cost of living.

There are 12 states that have laws requiring a higher minimum wage than the federal standard, including California, Oregon, Washington, Alaska and Hawaii. The city of San Francisco has an ordinance that raised the minimum wage higher than the state's.

The initiative petition will be filed today with the secretary of state's office. Thompson said he wants to get it on the November election ballot. To do so, he would have to gather the signatures of 51,243 registered voters by June 15 on the initiative petition, and 10 percent of the voters would have to sign it in 13 of the state's 17 counties.

If there are enough verified signatures, the issue would be placed on the election ballot in November. Then it would have to be passed again in November 2006 before it would take effect.

The petition would exempt those employers who pay for health care benefits for their workers. Many of the major employers in the casino industry, for example, provide health care benefits and pay the minimum wage.

A similar approach was used in the payroll tax enacted by the 2003 Legislature. Companies are allowed a tax deduction for their expenses in providing health care coverage for employees.

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

The AFL-CIO estimates that 50,000 workers in Nevada make $5.15 an hour. Other workers who are earning up to $6.15 an hour would also see an increase if the measure is successful. The organization is doing a study to see how many employees would end up with raises.

Thompson said his group will start gathering signatures at the state Democratic Convention Saturday in Las Vegas.

He said raising the minimum wage "affirms Nevadans' beliefs that we value work, especially the difficult jobs performed by workers such as child care workers, nursing home employees and retail clerks."

The minimum wage law does not apply to casual baby sitters, domestic service employees who live in the household where they work, outside salespeople whose earnings are based on commission, taxicab and limousine drivers, and severely handicapped persons whose disabilities have diminished their productive capacity in a specific job. Some farm employees are also exempt.