More cash for students if wage goes up

Randall Cleveland
News Stringer

Student employees at SIUE could soon be earning more if Democrats and Republicans can agree on a bill to increase minimum wage.

On Feb. 2, the Senate passed a bill that could increase minimum wage by $1 an hour over three years. The Republican-controlled Senate drew some criticism from Democrats, who agree with a wage increase but feel it should be enacted over two years, not three. Also, business owners are arguing that a wage increase should not take place at all and fear that higher wages will cause layoffs and lost profits.

The House will vote in March on a separate version of the bill, which would provide businesses with tax incentives if the increase would affect them.

According to Student Employment Offices at SIUE, approximately 1,200 students are on the payroll. If the measure were to pass, the raises would be universal, and everyone would get the proportionate raise of $1 an hour. However, since departments use their own funding from the university to pay student employees, belts may have to be tightened.

This is the main concern of most businesses across the nation as well. Richard Lumma, director of the Small Business Development Center, suggested that businesses increase prices to balance out the higher wages. However, many business owners are quick to point out that most markets are too competitive to allow raising prices suddenly, and their establishments would flounder.

Student employees unanimously agreed with the wage increase but didn't seem to sympathize with the complaints of businesses. "They can definitely afford to raise minimum wage," sophomore Maureen Hagrman said.

Lumma also explained that businesses must meet certain requirements concerning the size of the payroll to be affected by this increase, so small mom-and-pop stores won't be forced to close.

U.S. Rep. Jerry Costello, D-Belleville, has said he supports the two-year increase with no tax incentive. "While the economy has done very well, there are people who have not seen the positive results, and those people are the lowest wage earners," Costello said.

He also has addressed businesses' fears of higher wages, which will mean more layoffs and fewer jobs. "But, historically, that's not true. If you look back, that has not been the case," Costello said.