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Minimum Wage Increases Save Email Print
Posted: 6:43 PM Jul 24, 2008
Last Updated: 8:24 PM Jul 24, 2008
Reporter: Steven Glazier
Email Address: Steven@tv3winchester.com

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The federal minimum wage today has risen from $5.85 to $6.55, causing the state of Virginia to follow. According to the Bureau of Labor statistics, only 1.73-million hourly workers made Federal Minimum or less in 2007. But one historic site in Winchester might be feeling the bind after today.
After going nearly a decade without a federal increase, the minimum wage has risen a dollar-forty since two years ago. However with the seventy-cent hike, most workers won't be seeing a raise today.

Gene Schultz/Virginia Employment Office Manager: "The market has been so tight that the unemployment rate has been so low for such a period of time that employers competing for labor have pretty much moved away from the minimum wage so many employers were already paying more than the $5.15 then going to the $5.85 per hour."

With the rising costs of living, money is creeping in on worker's minds. Statistics from the Labor Bureau show only 2.3-percent of hourly workers made federal minimum or below in 2007.

Last year the Winchester Frederick County Historical Society made it through the price hike in minimum wage. However with the additional 70-cents per employee this year they might have to reconstruct their financial budget.

The historical society currently has seventeen employees. While admission income is on par, gift shops sales are down, and the society will be dishing out more every pay period.

Gene Schultz/Virginia Employment Office Manager: "There are a number of companies though that are the small groups, the non-profits the people who rely on the part-timers, the young people, they might be impacted by this."

There are no current plans to cut employees from touring historic Winchester, but hours might have to be if less funds come in.

REBECCA CATHER
WINCHESTER CITIZEN
Rebecca Cather/Winchester Citizen: "Minimum wage, even at the rate it is going up to, is not going to take care of a lot of people between rent, and the cost of living that has gone tremendously high, and the gasoline."

Lee Henderson/Healthy Families Executive Director: "I think many people who work with our program definitely are working in minimum wage positions because they have young children so so it's more difficult for them to work in a more standard work setting where they may have a salary compensating them."

The next federal wage increase is slated for July 24th, 2009, which will help those at the minimum, but may cause more binds for small local businesses.
The Federal minimum wage is projected to catch up to many state's minimum with next year's hike to 7 dollars and a quarter.
That hike is projected to have the potential to affect many more workers than this one.

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