Newswire - Kennedy proposes increase in minimum wage

By Brittany Lawonn

WASHINGTON, March 3 - Sen. Edward Kennedy proposed Thursday to increase the minimum wage from $5.15 an hour to $7.25.

The Massachusetts Democrat offered his proposal as an amendment to the bankruptcy bill, which would make it more difficult for consumers to file for bankruptcy to wipe out debt. The amendment was discussed on the Senate floor Thursday and will be voted on Monday.

The amendment would raise the minimum wage in three 70-cent increments, raising the wage to $5.85 two months after enactment; to $6.55 one year later; and to $7.25 one year after that.

The $5.15 minimum wage went into effect on Sept. 1, 1997, after a two-step process that raised it from $4.25 an hour in 1996.

A two-step process was also approved in 1989 to raise the minimum wage from $3.35 an hour to $4.25, which was fully implemented on April 1, 1991.

Based on inflation rates, today's $5.15 wage would be worth only about $4.40 in 1997 dollars.

Sen. Kennedy called the amendment "critical to preventing the economic free fall that often leads to bankruptcy," saying that for some people "the minimum wage is the American nightmare, not the American dream."

"If the Senate is serious about an anti-poverty agenda we will end the hypocrisy of easy rhetoric and take the long overdue actions that are so obviously needed as part of a genuine anti-poverty agenda," he said on the Senate floor. "Let's start by raising the minimum wage."

Sen. Kennedy also made attempts to add minimum wage amendments to bills last session.

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