Gov. Doyle: Governor Doyle Announces New Statewide Minimum Wage Increase Recommendations

Contacts:
Rose Lynch, Department of Workforce Development, 608-266-6753

Jessica Erickson, Governor’s Office, 608-261-2156

Minimum Wage Advisory Council Agrees to Increase
State Minimum Wage Rates to $6.50 by 2005

Governor Jim Doyle announced today that the Minimum Wage
Advisory Council has voted 16-2 to increase the state’s minimum wage to
$5.70 per hour in 2004 and to $6.50 per hour in 2005.

“I want to thank the council for recognizing the need to
raise wages for Wisconsin’s working families,” Governor Doyle said. “These
new wage rates will mean more money in the pockets of our lowest paid
citizens, and will be a stimulus for our economy as these individuals have
additional buying power to support themselves and their families.”

The council – comprised of leaders from the business
community, labor organizations, the University System and both houses of the
Legislature – agreed today to several minimum wage categories and rates.
The council re-introduced the use of a minimum wage rate for minors, under
age 18, which increases the current minimum wage rate to $5.30 per hour.
The proposal also includes new minimum wage rates for golf caddies and camp
counselors, and an opportunity rate for individuals in the first 90 days of
employment that would raise to the general minimum wage rate after 90 days
if the worker is an adult.

The council proposed a two-phase increase, with the first
increase effective October 1, 2004, and the second on October 1, 2005 for
the general, minor, and opportunity rates.

General minimum wage rate
Increases to $5.70/hour effective 10/01/04 (currently $5.15/hour)
Increases to $6.50/hour effective 10/01/05

Minor minimum wage rate
Increases to $5.30/hour effective 10/01/04 (currently same as adult rate
$5.15/hour)
Increases to $5.90/hour effective 10/01/05

Opportunity minimum wage rate
Increases to $5.30/hour effective 10/01/04 (currently $4.25/hour)
Increases to $5.90/hour effective 10/01/05

Golf caddy minimum wage rate
Increases to $10.50 for 18-holes, and $5.90 for 9-holes
beginning 10/01/04 (currently $5.95 for 18-holes, and $3.35 for 9-holes)

Camp counselor minimum wage rate – for staff age 18 and over
Increases to $285/week effective 10/01/04, and $315/week
effective 10/01/05, if no room and board provided (currently $140/week)
Increases to $217/week effective 10/01/04, and $240/week, if
board provided (currently $110.00/week)
Increases to $171/week effective 10/01/04, and $189/week, if
room and provided (currently $91.00/week)

Camp counselor minimum wage rate – for staff under age 18
Increases to $265/week effective 10/01/04, and $275/week
effective 10/01/05, if no room and board provided (currently $123.00/week)
Increases to $202/week effective 10/01/04, and $209/week, if
board provided (currently $92.00/week)
Increases to $159/week effective 10/01/04, and $165/week, if
room and provided (currently $74.00/week)

The Department of Workforce Development estimates that
101,000 individuals will benefit in the first year by the increase and
150,000 in the second year by the increase in the minimum wage rates.
Although many minimum wage workers in Wisconsin are young people, nearly
half are over 25 years of age. Nearly two out of every three are women.
More often than not, they are single parents, struggling to support
themselves and their children. And, while many are part-time workers,
almost one-third work full time at the minimum wage.

Department of Workforce Development Secretary Roberta
Gassman, whose agency convened the wage council, thanked the council members
for their work and indicated the council’s recommendations will be advanced
through the state’s administrative rule process.

“The minimum wage rates agreed to today will help many
families to make ends meet,” Secretary Gassman said. “This will be a real
stimulus for our local economies, as individuals statewide have more
disposal income.”