Raising the minimum wage would help those at the bottom of the pay scale and create a positive image of North Dakota, according to Rep. Woody Thorpe, D-Minot.
Thorpe introduced House Bill 1382, which calls for increasing the minimum wage from $5.15 an hour to $6 in August and $6.50 in August 2006.
Thorpe told the House Industry, Business and Labor Committee on Monday that the increase would help people who are working multiple jobs, some of which pay entry-level wages.
"Someone who works hard for a full day's work should at least be able to pay for a baby sitter and gas to get to work," Thorpe said.
Opponents of the bill want the wage left alone until the federal government decides to increase it again.
Labor Commissioner Leann Bertsch said North Dakota sets its minimum wage to the federal minimum wage, which has been $5.15 since 1997. Some states have set minimum wages that are higher than the federal rate.
Proposals to increase the minimum wage in the state have been defeated in previous legislative sessions.
Rep. Dan Ruby, R-Minot, an Industry, Business and Labor Committee member critical of the bill, asked Thorpe why he didn't set it even higher if he thinks raising it would help so much.
"Why not put it where you think it needs to be?" Ruby asked.
Thorpe said $6.50 an hour is still below the poverty rate, but he wanted the increases small to give the bill a realistic chance to pass.
The bill also includes a provision where the increased rate would expire July 31, 2007. Thorpe said the expiration was put in the bill to allow legislators to revisit the issue later to determine its effect.
Bill Butcher, state director of the National Federation of Independent Businesses, said 75 percent to 80 percent of the NFIB's 3,000 members in the state want the minimum wage left alone.
"It has traditionally been tied to the federal minimum wage, and I see no reason to change that," Butcher said.
Butcher said the NFIB's members have been surveyed on the issue several times through the years.
Bill Shalhoob, a lobbyist for the North Dakota Hospitality Association, said the people he represents want the labor commissioner to have hearings to determine the minimum wage rather than have the Legislature dictate what it will be.
Shalhoob, who also is a hotel owner in Bismarck, said none of his employees earn minimum wage.
Representatives from labor unions testified in favor of the bill.
John Risch, legislative director of the United Transportation Union, said it is time for the state to raise the minimum wage because of inflation.
"I don't believe the federal government will raise it anytime soon," Risch said.
Dave Kemnitz, president of the North Dakota AFL-CIO, said increasing the minimum wage helps everyone.
"In order to bring everyone up, the floor needs to come up some," Kemnitz said.
The committee did not immediately take action on the bill on Monday.
(Reach reporter Tom Rafferty at 223-8482 or tom.rafferty@bismarcktribune.com)
Posted in Local on Monday, January 24, 2005 6:00 pm Updated: 6:43 pm.
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