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Obama to raise minimum wage for federal contractors

Obama to raise minimum wage for federal contractors
CNN
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POSTED: Tuesday, January 28, 2014 - 7:44am

UPDATED: Wednesday, January 29, 2014 - 1:03pm

While President Barack Obama's attempts to increase the nation's minimum wage through legislation have stalled in Congress, the White House announced plans on Tuesday to use the president's executive powers to partially address the problem.

Just hours before the President is scheduled to deliver his fifth State of the Union address, the White House revealed that Obama will issue an executive order to increase the minimum wage for new federal contract workers.

The action will cover all workers employed under future government contracts, ensuring that none is paid less than $10.10 an hour. In a fact sheet announcing the action, the White House highlighted several occupations that will be helped by the move, including kitchen and laundry workers on military bases, as well as janitors at federal buildings and construction workers at government building sites.

"The President has embraced the idea in the past that he can use his authority as President and the powers available to the President to advance his agenda on behalf of the American people," White House press secretary Jay Carney said at his briefing on Monday. "What we have said is that he views 2014 as a year of action and that he has tasked his team to come up with new ways in which we can -- he can -- advance that agenda."

An administration official confirmed the action will apply only to new contracts, and the White House believes contractors will have time to factor the new wage requirements into future bids.

Included in Tuesday's announcement was a call for Congress to pass an increase in the minimum wage nationwide and an endorsement of a proposal put forward by two senior Democrats, Sen. Tom Harkin of Iowa and Rep. George Miller of California. The proposal would raise the minimum wage for all workers in stages, ultimately reaching $10.10 an hour, while also indexing the wage floor to inflation going forward.

Obama has made wages and economic inequality a central theme of his second term in office, raising the issue repeatedly, including during a call for an extension of emergency unemployment benefits in his first public event of 2014.

"America is getting stronger, and we've made progress," the President said. "And the economy is growing, and we've got to do more to make sure that all Americans share in that growth. We've got to help our businesses create more jobs. We've got to make sure those jobs offer the wages and benefits that let families rebuild a little security. In other words, we've got to make sure that this recovery leaves nobody behind. And we've got a lot of work to do on that front."


-- CNN's Jim Acosta and Brianna Keilar contributed to this report.


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Sheila, since you are probably the most hate-filled anti-Semite on the planet, where does all your hate rhetoric come from? I understand, from one of your past posts, that you are a Black woman, right? And, since Hitler didn't have any Blacks who killed Jews in concentration camps, none of your ancestors were part of the extermination of Jews in the '40's...so why the hate? Sheila, I'm not an old, Black, hate-filled man...I'm White...so get over it! What IS your problem, old girl?

If the US is to advance, ALL American workers should be fairly compensated for work they do...money in a worker's pocket translates to greater buying power, greater buying power puts pressure on manufacturing to meet the demand, and more jobs are created.. One cannot expect Sheila "no to everything" or deaf "everyone else is wrong but me" smith to understand, but I am willing to pay more for "Made in America" than to subsidize China while Americans live in poverty without good jobs & decent pay.

Remember that inflation the Fed. Res. said we didn't have, well Nicodemus holds a sign saying he's a victim of a dollar not going far enough. Federal Contractors aren't concerned with the increase, they simply charge more to the taxpayer in that symbiosis which exists between gov. and selected industries. Here comes the wave of inflation where all business are required to follow gov.s example. Gov. needs inflation to devalue their debt, and rob the savings of the goyem.

If the 'contractors' are forced to raise their minimum wage but all others are NOT, then you will see this:

1. The Contractors will scale back the use of low paying workers due to higher cost or else in any work they do for any other company they will not be able to compete for work due to higher cost.

2. Some contractors will see this and drop out of the federal market and that will drive up cost for the government to hire anyone.

As usual it will not work as the liberals think it will.

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