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NewsMonday, June 23, 2008 9:50 AM CDT
State's minimum wage to increase by a quarter
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SPRINGFIELD -- Decatur gas station owner John Phillips said he was glad to find out the state minimum wage would go up by 25 cents in July.

But his delight came mostly because he thought it was going up $1.

“I’m relieved it’s a quarter,” Phillips said.

On July 1, the minimum wage in Illinois will go up to $7.75. It’s now $7.50 after rising from $6.50 at this time last year.

Gov. Rod Blagojevich and lawmakers approved the increases in 2006. The state says that this year’s increase will mean $520 more a year for a full-time, minimum-wage worker.

“This makes Illinois a national leader in raising wages for low-income workers,” said Anjali Julka, spokeswoman for the state Department of Labor.

In fact, the new Illinois minimum wage will be more than a dollar more than the new federal minimum wage of $6.55, which will take effect at the end of July. And the state mark also is higher than any neighboring state.

The July increase gives minimum-wage workers a little more money to pay for rising gasoline prices, utilitiy rates and food costs.

But many store owners who employ minimum-wage workers could have to further raise prices on all of their products to pay for the higher salaries.

Employers have had time to plan for increases in the minimum wage because the state outlined 25-cent increases every year through 2010, when the wage will hit $8.25.

But other factors for a business can be unpredictable, said Illinois Retail Merchants Association spokesman Peter Gill.

“You can’t plan for the economy,” Gill said.

For Phillips, he said the increased wage won’t affect the price of gas at his station, but the cost other fare such as candy bars and soda will likely rise, if only by pennies here and there.

He said passing the increased costs onto paying customers is a better option than having to let any of his employees go.

“That’s not a pleasant thing to have to do,” he said.

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Reader comments on this story - 11 total

Note: All views and opinions expressed in reader comments are solely those of the individual submitting the comment, and not those of the Pantagraph or its staff.

pseudo-intellectual wrote on Jun 23, 2008 5:42 PM:

" Liberals are more generous than conservatives... with our money. They use higher taxes (and welfare programs such as the minimum wage) to help get re-elected. "

cats55ire wrote on Jun 23, 2008 12:10 PM:

" If you're sick after reading this article about the minimum wage only going up a quarter, read some of the other articles about people in Iowa and Illinois who are cleaning up after the flood waters . . . they have reason to complain!!!!!!
Pls. put it all in perspective . . . "

Ted Kennedy's Swim Instructor wrote on Jun 23, 2008 10:59 AM:

" Holy smokes, I'll be celebrating this wage increase. It's going to be nothing but name-brand ketchup for me from now on. Hunt's, mind you, not enough money for Heinz yet. I told the wife I had a surprise for the family when I got home, and I wasn't kidding: chewable vitamins for the kids. I can now plan for my retirement by investing in in higher-yield scratch-ticket games offered by the Lottery. With the economic stimulus this wage increase is providing, I saw the dollar store was sold out of flip-flops and the stiffer kind of paper plates. "

WorkinTheOpinionBoard wrote on Jun 23, 2008 8:03 AM:

" So, if minimum wage goes up, will bigger companies raise the wages of their wage-hour employees to offset the cost as living as well? Say I make $8.50/hour...should my wage-hour go up 25 cents as well? Or will I soon be included under minimum wage? "

Tom Terrific wrote on Jun 23, 2008 7:29 AM:

" To talker, once you get that quarter raise, take note of the price of everything around you. They will go up so those on min. wage will be right where they were before. "

larrys17 wrote on Jun 23, 2008 6:47 AM:

" This is a pointless gesture on the part of the state. As a business owner, i have to pay my employees a quarter more an hour. so does everyone else. and they pass that increase onto the consumer, you and me. if i make a quarter an hour more, yet have to pay more money everywhere i to to buy anything, where is the increase in my wages? there isn't one. Instead of raising the wage, the state should be doing what it can to control the costs if takes to do business in this state. The Federal Government should be doing the same. "

pseudo-intellectual wrote on Jun 23, 2008 6:30 AM:

" A small raise, but it comes at a bad time. It will only add to inflationary pressures, and lead to more layoffs. "

JMK wrote on Jun 23, 2008 12:45 AM:

" bngurl - the state of Illinois isn't paying for your raise, so it's not them being 'generous', it's them forcing your employer to be 'generous'... better watch out, your job might not be worth another quarter. "

The Peanut Gallery wrote on Jun 23, 2008 12:25 AM:

" “This makes Illinois a national leader in raising wages for low-income workers,” said Anjali Julka, spokeswoman for the state Department of Labor.

It also makes it less likely that minimum-wage earners will get a job to begin with, Anjali. But who cares, right? "

talker wrote on Jun 22, 2008 11:20 PM:

" about time they give us enough to meet the gas prices rising aling with everything else going up. "

bngurl wrote on Jun 22, 2008 10:56 PM:

" Wow a whole quarter. The state of illinois is being too generous! (yes i am being sarcastic) "

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