NEWS

GOP's minimum wage rollback headed to Branstad's desk

William Petroski
bpetrosk@dmreg.com
Server Wendy Becvar works the lunch crowd at Jethro's BBQ n' Pork Chop Grill in Johnston Tuesday July 12, 2016. By working a tipped job, she says she makes more per hour than her previous hourly work as a CNA.

The Iowa Senate gave final approval Monday to a bill that freezes the state's minimum wage at $7.25 an hour, although Democrats angrily denounced the bill, accusing Republicans of failing to support poor Iowans.

House File 295 rolls back minimum wage increases already approved in four counties, including Polk, Johnson, Linn and Wapello. In addition, Lee County supervisors have been in the process of approving a minimum wage hike.

The measure, which has already cleared the House, received final Senate passage on a 29-21 vote, sending it to Gov. Terry Branstad, who is expected to sign it. All Republicans voted for the bill and all Democrats opposed it, along with one independent.

Sen. Randy Feenstra, the bill's floor manager, said the legislation will provide Iowa employers with certainty, predictability and uniformity by assuring the same minimum wage statewide.

"Businesses can hire people at hourly rates higher than the minimum wage. They can do as they see fit to hire people," Feenstra said.

The state and federal minimum wage has remained at $7.25 in Iowa since 2008. Twenty-nine states have raised their wages above the minimum rate.

Sen. Janet Petersen, D-Des Moines, criticized the legislation, saying it's wrong to rip pay raises out of the pockets of Iowa's lowest-paid workers.

"What do we have against poor people in this state, working hard and trying to make it?" said Petersen, who called the bill "ridiculous."

Senate Minority Leader Robert Hogg, D-Cedar Rapids, said Iowa is facing a shortage of workers, but Republicans are responding by pursuing a series of anti-worker bills that include eliminating local minimum-wage increases.

"This is shameful," he said.

Sen. Pam Jochum, D-Dubuque, contended that Republicans no longer care about low-income people who they grew up with and still live in their own communities. She said she still sees these poor Iowans every day.

“We are better people than this. What happened to us?" she added.

Most Republican lawmakers stayed silent at their desks during the debate and declined to respond to Democrats other than voting down amendments to the bill.

But Sen. Mark Chelgren, R-Ottumwa, defended the legislation, and he noted that the Ottumwa City Council has opted of a minimum-wage increase approved for Wapello County. He said the situation is creating a patchwork-quilt of minimum-wage laws that is bad for economic development in Iowa. He also offered to work with other lawmakers so that low-income Iowans can avoid cuts in public assistance benefits if they accept wage increases.

In closing remarks, Feenstra said he was disappointed that Democrats questioned the motive of Republicans. He said minimum wages should be controlled by state and federal laws and he believes Republican lawmakers are trying to strike a delicate balance between urban and rural Iowa business communities.

Feenstra said the legislation is necessary to create statewide consistency. He added that legal arguments could be made that the counties which approved minimum-wage increases have not conformed with state law.

"Senators: This is not an easy issue. I get it. It is very difficult. It is very complex," Feenstra said.

The bill also prevents cities and counties from exercising local control on some other issues that Republican lawmakers contend conflict with state law, such as paid family leave, implementing a soft drink tax or banning the use of plastic bags.

In Polk County, about 36,000 workers would benefit from a minimum wage increase, said Peter Fisher, research director at the Iowa Policy Project. Estimates from the Economic Policy Institute show 25,200 employees earn less than $8.75 an hour, he said. Another 10,800 would indirectly benefit from Polk County's increases as businesses raise wages to remain competitive, he said.

Polk County wages are scheduled to grow incrementally to $10.75 an hour by 2019, beginning with an increase to $8.75 an hour on April 1. However, at least six Polk County cities have already approved or are considering opting-out of the minimum wage hike.

The legislation is supported by Petroleum Marketers and Convenience Stores of Iowa, the Iowa Restaurant Association, Iowa Association of Business and Industry, the Iowa Chamber Alliance, the Iowa Grocery Industry Association, and others. Opponents include the Iowa League of Cities, Iowa State Association of Counties, Iowa State Education Association, AFSCME Council 61, Iowa Annual Conference of the United Methodist Church, and others.

Branstad has expressed an openness to consider separate legislation to raise the state's minimum wage to a level that would be competitive with surrounding states. But Republican legislative leaders have not taken any steps this session to raise Iowa's minimum wage. They say they are focused on developing a business-friendly environment to create additional good-paying jobs and to provide education and training to fill vacant positions.