FOR IMMEDIATE RELEASE
Contact: Mike Gillis @ 216.334.9068
Economic benefits of increase are clear, and more significant increases needed
COLUMBUS, OH — On January 1, 2015, workers covered under Ohio’s minimum wage law will see a 15 cent increase in their hourly wage taking them to $8.10 an hour. In 2006, on behalf of Ohio’s lowest wage earners, the Ohio AFL-CIO and the coalition Ohioans for a Fair Minimum Wage successfully placed the constitutional amendment on the ballot which tied Ohio’s minimum wage rate to the Consumer Price Index (CPI). The CPI increased 1.6% from September 1, 2013 to August 31, 2014.
“At a time when wage disparity has reached historic proportions, this increase in Ohio’s minimum wage will help, but it won’t come close to solving the problem” said Ohio AFL-CIO President Tim Burga. “There is a direct economic benefit from the increase as these wage earners will spend more earnings directly into our communities and local economies,” he said.
“There is strong evidence that raising the minimum wage helps our economy in a variety of ways,” Burga said. “It helps lower unemployment rates and bolsters our economy in a way that benefits all of us,” Burga said. “We have put Ohio on the forefront of this economic advance, but there is still a long way to go,” he said.
Originally passed as part of the Fair Labor Standards Act of 1938, the purpose of the minimum wage was to prevent market forces from driving down the wages of the lowest earners in the labor force. Research shows that an increase in the minimum wage also spurs employers to increase wages for other low-wage workers.