Lawmakers feel new influence to raise the minimum wage
Oregon lawmakers are under renewed pressure to raise the state's $9.25 minimum wage. If lawmakers won't, several coalition groups have said, the issue will be decided by Oregon voters on the 2016 ballot.
Monday afternoon, protesters at the Senate Interim Committee On Workforce and General Government broke into chants of "Fifteen now" and "Black lives matter."
Panels from the City Club of Portland, the Raise the Wage Coalition, National Employment Law Project and Oregonian business owners addressed the committee to provide context for Oregon's minimum wage debate.
Their presentations come two months after the announcement that the statewide minimum wage, which is tied to the consumer price index, will not increase next year. Policy research organizations have released reports showing that income in equality in Oregon is worsening. According to testimony submitted Monday by Oregon State University economics professor Bruce Weber, more than 40 percent of income in Oregon goes to the top 10 percent of earners. That percentage has increased sharply since the '90s. In contrast, wages for middle and low income earners have stayed flat or declined.
Oregon, however, experiences less income inequality than many other states, such as California.
Oregon minimum wage will not increase in 2016
Coalitions of labor unions and community organizations are lobbying lawmakers to tackle wages during the 2016 legislative session, as well as collecting signatures in the hopes of submitting a ballot measure.
If one arm fails, the other may succeed.
Besides the actual wage, lawmakers will face a debate — should they take up the issue at all — over whether to lift preemption provisions in Oregon's wage policy.
The preemption prevents local governments from establishing their own wages. Lifting preemption would allow urban centers to set minimum wages higher than the state wage, similar to the policy in Seattle.
Groups lobbying in support of raising the minimum wage generally advocate removing the preemption, and say doing so would allow urban centers to pay in accordance with the cost of living in those areas.
If the minimum wage increases by any means it will mean increased costs to businesses, according to testimony from Chris Allanach of the Legislative Revenue Office.
Sen. Tim Knopp said in an April press release that raising the minimum wage to $15 could cost Oregon business billions. Other Republicans, such as Rep. Mike McLane, have said there shouldn't be a huge wage hike, though lifting preemption may be the right place for compromise across the aisles.
House Speaker Tina Kotek said in September minimum wage is a "top priority" of hers for the upcoming legislative session. She said $13.50 an hour is a reasonable standard. Labor Commissioner Brad Avakian, who is running for secretary of state, has also supported a $13.50 minimum wage.
Senate President Peter Courtney said in an email on Monday that the Legislature should try to pass a minimum wage increase, though the minimum wage should be less than $13.50, echoing statements he's previously made.
"One size doesn’t fit all," he said in support of lifting preemption. "A wage that makes sense in Portland could crush the economy in rural Oregon."
Courtney said Oregon needs business and labor, and that lawmakers should work together on a solution.
"We need to get to work," he said. "February is a short session. The clock is ticking."
gfriedman2@statesmanjournal.com, (503) 399-6653, on Twitter @gordonrfriedman or Facebook.com/gordonrfriedman