Oregon Votes 2002

While some measures on the Nov. 5 ballot threaten to take away money from Oregonians, one promises to put it back in their pockets.
Measure 25 would increase the minimum wage from $6.50 to $6.90 per hour, and would mandate annual increases for inflation based on the consumer price index.
A few student jobs on campus may be lost because of the minimum wage increase, but organizations will quickly recover, Career Center Director Larry Smith said.
The number of work-study jobs should not decrease; however, the number of hours students will be allowed to work most likely will, especially for jobs receiving pay higher than minimum wage, Smith added.
Under current law, minimum wage is not adjusted for inflation. The last wage increase Oregonians saw was in 1999 as part of a three-step increase approved in 1996, which brought the minimum wage to the current level.
“Oregon has the lowest minimum wage on the West Coast,” state Rep. Diane Rosenbaum said. “It’s time to do something.”
In addition to the 2003 wage increase, Measure 25 would require minimum wage to be adjusted for inflation in following years. These adjustments would be calculated by the Commissioner of the Bureau of Labor and Industries, rounded to the nearest five cents, and would replace the previous year’s wage on Jan. 1.
“We are long overdue for this,” Rosenbaum said. “Oregon has the highest rate of hunger, and one in seven children live in poverty. Measure 25 would put money in the pockets of those living in poverty.”
One myth about the effects of Measure 25, Rosenbaum added, is unemployment.
“Raising the minimum wage does not cause job loss,” she said. “When the last increase was approved in 1996, the number of jobs increased by three percent.”
But some Oregonians feel Measure 25 would harm the rural economy.
“This is a feel-good issue,” Oregon Farm Bureau Federation Communications Director Gary Claus said. “But Measure 25 would make the rural economy worse than the urban economy.”
Employees’ wages in rural areas would be adjusted to Portland’s rate of pay, regardless of their area’s economic status, Claus said.
“Wages are being raised according to the urban consumer price index,” he said. “But the cost of living in rural areas is much less than urban areas. This measure would be very tough on the rural communities.”
Agriculture also would feel the negative effects of Measure 25, he added.
“Farmers will lose money under this law,” Claus said, “especially with falling produce prices and having to pay their workers more. Unfortunately, farmers cannot pass along this increase to consumers.”