New coalition calls for a living wage of $20 per hour

The Living Wage Coalition is calling for a state living wage of $20 an hour.  The group, recently formed, held a press conference at the Wisconsin State Capitol on Sept. 2 – a day after statewide Labor Day celebrations. 

The coalition, which includes the Milwaukee Area Service and Hospitality Workers (MASH), Working Families Party, Citizen Action of Wisconsin, Our Wisconsin Revolution, and Fighting Oligarchy, is pushing for comprehensive legislation that would:

• Establish a minimum wage of at least $20 per hour.
• Index the minimum wage to inflation to prevent future loss of purchasing power.
• Reduce the "tip penalty" for tipped workers.
• Restore local control, allowing municipal governments to set their own minimum wage rates.

“It's time for a new Wisconsin Idea,” said William Walter, Executive Director of Our Wisconsin Revolution. “Had minimum wage kept up with the gains in productivity, if the labor market had actually been structured to protect power for working people, we'd be talking about a minimum wage of $26 an hour.

“We, the Living Wage Coalition, call on every single legislator in the state of Wisconsin to support comprehensive wage living wage legislation that includes establishing a minimum wage of at least $20 per hour indexed to inflation,” Walter added.

The coalition's call for a $20 minimum wage is based on current economic data and research.  According to a study by MIT economists, a "living wage" for a single adult in Wisconsin would need to be over $20 per hour. A recent UW-Madison report found that nearly 25 percent of Wisconsin's workforce (over 600,000 residents) make less than $20 per hour, with almost 250,000 making less than $15 per hour. There was a push for a $15 per hour minimum wage in 2012.  Also, few low-wage workers receive benefits, such as healthcare, sick leave, or vacation time.

Wisconsin's minimum wage has been set at $7.25 per hour since 2009.

The low subminimum wage for tipped workers, currently $2.33 per hour, has not increased since 1991, leaving their income almost entirely dependent on tips. While the law mandates employers "top off" wages if tips don't meet the full minimum wage, this rule is difficult to enforce, leaving many workers vulnerable.

"Democrats and Republicans alike tell us that they want to represent the working class," said Peter Rickman, President of the Milwaukee Area Service and Hospitality Workers Union. "Now is their time to show us by introducing and passing comprehensive living wage legislation."