Biden, Democrats push for Rs2,400 per hour minimum wage

WASHINGTON: The Democratic push to raise the federal minimum wage to $15 (Rs2,400) an hour has emerged as an early flashpoint in the fight for a $1.9 trillion COVID-19 relief package, testing President Joe Biden’s ability to bridge Washington’s partisan divides as he pursues his first major legislative victory, foreign media reported.

Biden called for a $15 hourly minimum wage during his campaign and has followed through by hitching it to a measure that, among other things, calls for $1,400 stimulus checks and $130 billion to help schools reopen. Biden argues that anyone who holds a full-time job shouldn’t live in poverty, echoing progressives in the Democratic Party who are fully on board with the effort.

“With the economic divide, I mean, I want to see a $15 minimum wage. It should actually be $20,” said Rep. Rashida Tlaib, D-Mich.

Some Republicans support exploring an increase but are uneasy with $15 an hour. They warn that such an increase could lead to job losses in an economy that has nearly 10 million fewer jobs than it did before the pandemic began. Moderates such as Sen. Lisa Murkowski of Alaska and Rep. Tom Reed of New York are urging Biden to split off the minimum wage hike from COVID-19 talks and deal with it separately.

“The more you throw into this bucket of COVID relief that’s not really related to the crisis, the more you risk the credibility with the American people that you’re really sincere about the crisis,” Reed said. Including the wage increase, Murkowski said, “complicates politically an initiative that we should all be working together to address.”

The resistance from moderates has left Democrats with a stark choice: Wait and build bipartisan support for an increase or move ahead with little to no GOP backing, potentially as part of a package that can pass the Senate with Vice President Kamala Harris’ tiebreaking vote. Democratic leaders appear to be moving toward the latter option, with no guarantee of success. Even if raising the wage can get past procedural challenges, passage will require the support from every Democrat in the 50-50 Senate, which could be a tall order.

Leading the charge is Sen. Bernie Sanders, I-Vt., who unveiled $15 wage legislation this week with the backing of 37 Senate Democrats. His bill would gradually raise the wage to $15 over a period of five years. The federal minimum is $7.25 and has not been raised since 2009.

Sanders, the incoming chair of the Senate Budget Committee, said it was fine with him if Republicans were not prepared to “come on board.” He said the government needed to pump money into the economy to make sure “people are not working on starvation wages.”