Breaking News: Seattle adopts $15 minimum wage, setting standard

From today’s NYT’s by Kirk Johnson:

SEATTLE — The City Council here went where no big-city lawmakers have gone before on Monday, raising the local minimum wage to $15 an hour, more than double the federal minimum, and pushing Seattle to the forefront of urban efforts to address income inequality.

The unanimous vote of the nine-member Council, after months of discussion by a committee of business and labor leaders convened by Mayor Ed Murray, will give low-wage workers here — in incremental stages, with different tracks for different sizes of business — the highest big-city minimum in the nation.

“Even before the Great Recession a lot of us have started to have doubt and concern about the basic economic promise that underpins economic life in the United States,” said Sally J. Clark, a Council member. “Today Seattle answers that challenge,” she added. “We go into uncharted, unevaluated territory.”

But some business owners who have questioned the proposal say that the city’s booming economy is creating an illusion of permanence. The fat times and the ability to pay higher wages, they warn, will not go on forever.

“We’re living in this bubble of Amazon, but that’s not going to go on,” said Tom Douglas, a prominent restaurateur in Seattle, referring to the local boom in jobs and economic growth from hiring at Amazon, the online retailer, which has its headquarters here. Mr. Douglas said the new law will inevitably result in costs being passed on to consumers. “There’s going to be some terrific price inflation,” he said.

The measure has the support of Mr. Murray, who ran last year on a pledge to raise the wage to $15 and made it one of his first priorities in office.

Cheers and jeers repeatedly erupted in the City Hall meeting room, which was packed with supporters of the plan, who often interrupted speakers in the 90-minute debate before the vote with chants.

“We did it — workers did this,” said Kshama Sawant, a socialist who campaigned for a $15 minimum wage when she was elected to the Council last year. Ms. Sawant sought to accelerate the carrying out of the measure and to strip out a lower youth wage training rate, but the council rejected her proposals.

The vote, economists and labor experts said, accentuates the patchwork in wages around the country, with places like Seattle — and other cities considering sharply higher minimum pay, including San Diego, Chicago and San Francisco — having economic outlooks increasingly distinct from those in other parts of the nation. Through much of the South, especially, the federal minimum of $7.25 holds fast.

Eight states plus the District of Columbia have already increased their minimum wages this year, the most to have done so in a single year since 2006, and at least eight other states and municipalities could put minimum wage ballot measures before voters by November. But it is the scale of ambition that is catching the attention of economists, labor leaders and business owners.

Read the entire article here.