Some economists say if wages had kept up with inflation since the 1960s, today's minimum wage would be between $12 and $14

June 4, 1999
Web posted at: 11:05 p.m. EDT (0305 GMT)

In this story: 'Stealth movement of 1990s' Business backlash RELATED STORIES, SITES

BOSTON (CNN) -- The national unemployment rate fell to a 29-year low in May, the Labor Department says. Meanwhile, the average hourly wage rose a nickel last month.

But that five-cent increase won't help those who are working hard, but hardly earning enough to get by. The discrepancy has led to movements across the country, pushing for a "living wage" -- a salary that a worker can live on.

The working poor, those with a family of four earning less than $16,400, number 6 million in the United States.

Others, like a 58-year-old janitor in Cambridge, Massachusetts -- while not statistically poor -- work three jobs, seven days a week, to survive.

"I work 7:30 a.m. to 4 p.m. on this (job), 6 p.m. to 11 p.m. at the supermarket," said the janitor, who did not want to be identified. "Then on the weekend, I do four hours Saturday, four hours Sunday."

Some economists say that if wages had kept pace with the cost of living since the 1960s, the minimum wage would now be between $12 and $14 dollars.

But the current, federally-mandated minimum wage is only $5.15 per hour.

Once the hard-working janitor has paid his taxes and rent, he is left with less than $150 a week to eat, buy clothes and pay for transportation and other expenses.

And that's the balance sheet for a single man in a relatively inexpensive apartment.

On the same money, a family almost certainly couldn't survive.

'Stealth movement of 1990s'

In Boston by the year 2000, hundreds of companies that contract with the city will have to pay a minimum of at least $8.23 an hour to workers.

The capital city of Massachusetts is following the lead of other municipalities like Baltimore and Los Angeles which have also mandated a so-called living wage.

Baltimore will boost its living wage from $7.70 to $7.90 next month. And Los Angeles, the nation's second largest city, mandated in 1997 that city workers be paid not less than $7.25 an hour.

"A minimum wage is just not enough to live realistically in America in 1999," said Lawrence Glickman, author of "A Living Wage."

"I think it's kind of the stealth movement of the 1990s, in the sense that more than 200 municipalities have passed some version of a living wage ordinance, or law." Glickman said.

Business backlash

Business groups are denouncing living wage requirements, saying the market, not the government, should set wage levels.

And Michigan officials are trying to use legislative action to head off a trend toward living wage ordinances in their state. Gov. John Engler said he wanted to "slam the door" on such laws.

Detroit currently requires companies doing more than $50,000 worth of business with the city or those organizations receiving financial assistance to pay a minimum wage of $8.23 an hour with health benefits, or $10.29 an hour if benefits are not provided.

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