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Granholm to sign wage bill

Governor expected to approve 3-step pay increase for Mich. workers today

March 28, 2006

Gov. Jennifer Granholm is expected to sign a bill today which will give minimum wage workers in Michigan their first raise in nine years.

The increase, which would take effect in October, would set the minimum wage at $6.95 per hour. It would then be increased to $7.15 beginning July 1, 2007. Finally, it would be raised to $7.40 beginning July 1, 2008.

The governor promised Michigan citizens they would get a raise this year, said Liz Boyd, Granholm's spokeswoman.

"We are delivering on that promise," Boyd said.

Granholm has called on the Legislature to raise the minimum wage for some time, she said.

"It's about a fair day's wage," Boyd said.

The minimum wage has been at $5.15 per hour since it was last raised in 1997.

Those opposed to the bill fear it will make Michigan businesses less competitive with the rest of the country because the national minimum wage will remain at $5.15 per hour. Others argue the increase will raise Michigan's unemployment rate and hurt the economy.

Boyd said Granholm supported the Michigan Needs a Raise Coalition's petition drive, which sought to place a proposal on the November ballot to raise Michigan's minimum wage.

With the expected passage of the legislation, the coalition has suspended its petition drive.

"The bill being presented for the governor's signature is far from perfect — it doesn't put the increase in the Constitution nor does it increase the minimum wage for tipped employees," Michigan State AFL-CIO President Mark Gaffney said in a press release. "However, we will stand with the governor on Tuesday knowing that the work of countless union volunteers in the streets made a difference."

The AFL-CIO, a labor organization, was a primary supporter of the coalition.

The increase will mean a raise for hundreds of thousands of Michigan workers, Gaffney said in the statement.

The work of the coalition helped force the Legislature to act, Boyd said.

"We think they can take great pride in knowing that their efforts helped encourage state lawmakers to do the right thing and raise the minimum wage," Boyd said.

The wage increase is provided for in a bill the Senate passed unanimously early this month.

In the House, the bill received more opposition, passing by a vote of 73-34.

Ken Osborne can be reached at osborn33@msu.edu.

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