Winkler & DFL Massive Minimum Wage Hike And Union Kickback?

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The contention among many people is that the DFL’s desire to pass massive minimum wage hike is that its just a union kickback. Many union contracts are tied to the minimum wage. It may be as many as 282,000 union employees have their contracts tied to minimum wage. Its something that is hard to research, but I may have just found a clue.  (See end of this post!)

Let’s start off with the simple facts first.

According to the MN Department of Labor and Industry only 93,000 Minnesotans actually get paid the minimum wage. There are some interesting tables in that link that show the demographic breakdowns of who is really being paid minimum wage in Minnesota.

DFL Rep. Ryan Winkler is the chief proponent of the massive minimum wage hike coming to the House floor on Friday.

The bill HF92  broadens the definition of a large employer (Currently: Gross receipts of over $625,000. Revision: Down to $500,000 a yr.). That means more employers are going to be hit with higher cost of doing business but not because of business growth. Its because a politician wanted them to. The DFL House bill would require some employers to pay more even if their business didn’t grow. Basically, Winkler is just moving the goal posts.

Winkler’s rate increases are staggering. They will be increasing as much as 62% on some employers in just 3 years and after it hits the proposed auto-pilot in 2016, it could skyrocket.  (Currently $6.15 for large employers & $5.25 for small employers.)

I made this handy chart to compare the changes being proposed by Rep. Winkler.

Winkler Steps

Large Employer

Small Employer

Current

Proposed

% change

Current

Proposed

% change

1-Aug-13

$6.15

$8.00

30%

$5.25

$7.00

33%

1-Aug-14

$6.15

$9.00

46%

$5.25

$8.00

52%

1-Aug-15

$6.15

$9.50

54%

$5.25

$8.50

62%

Starting in January of 2016, the rate is “indexed” to the Consumer Price Index.

2016 and beyond

$6.15

$10.00?

62% ?

$5.25

$9.00 ?

71% ?

Note: Starting in 2016, the Minimum wage rate would go on autopilot. Every year that rate is required to be “adjusted” by Winkler which means there is no telling how high it could go.

Here is a news story on the Winkler bill where the DFLer may have tipped his hand at why he is seeking such a massive increase in the minimum wage.

Minimum-wage legislation headed for the House floor

By ECM on April 30, 2013 at 2:28 pm – by Howard Lestrud – ECM Political Editor

It is expected that minimum wage legislation approved on a voice vote by the House Ways and Means Committee on Monday will be brought up on the House floor on Friday.

The committee advanced a bill that will give 375,000 Minnesotans a pay increase, said House chief author Rep. Ryan Winkler, DFL-Golden Valley.

375,000 Minnesotans would receive a pay increase due to the minimum wage rates going up according to Rep. Winkler?

The Department of Labor & Industry only reports 93,000 Minnesotans receiving the minimum wage. Who are the 282,000 other people Winkler claims will receive a pay increase?

Could they be the union employees who have their contracts tied to the minimum wage?

Could this be another kickback or sweatheart deal for the unions who worked so hard to get the DFL majorities and elect Governor Mark Dayton?

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