[Congressional Record Volume 144, Number 132 (Monday, September 28, 1998)]
[Senate]
[Page S11058]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                              MINIMUM WAGE

 Mr. ABRAHAM. Mr. President, I rise today to clarify my 
position on the minimum wage vote that took place last week. In 1996, I 
voted to increase the minimum wage by a total of 90 cents. I did this 
with the understanding that the minimum wage has not been increased 
since 1989. As many are aware, the last increment of the 1996 increase 
went into effect on September 1, 1997. Senator Kennedy is now proposing 
to increase the minimum wage by another dollar one year after the last 
increase took effect. Mr. President, I believe this is simply too soon 
because the current U.S. economic situation is unstable. Given the wild 
fluctuations in financial markets, continued economic stagnation in 
Asia, and job losses in our manufacturing sector, imposing additional 
costs on the private sector--particularly the small business sector--is 
very risky at this time.
  I also have concerns about the effect that increasing the minimum 
wage has on low-skilled workers. Studies that examine the effect of the 
1996 wage increase only heighten my concern. For instance, a recent 
review of data from the Bureau of Labor Statistics concludes that the 
October 1, 1996, 50-cent minimum wage hike led to 128,000 lost jobs 
among teen workers and up to 380,000 lost jobs overall. According to a 
study done by the Employment Policies Institute, the employment rate of 
teenagers declined by 0.14 percent after the increase. The decline in 
employment for black teenage males was even worse--1.0 percent.
  Minimum wage jobs provide workers with valuable on-the-job training. 
A full 60 percent of today's workforce cites a minimum wage job as 
their first work experience. As we begin to move people from welfare to 
work, it will become increasingly important that they have positions 
available to them to gain this experience. Mr. President, I do not 
believe that this is the time to put the availability of low-skilled 
jobs at risk.
  Finally, Mr. President, this amendment was offered to the Consumer 
Bankruptcy Reform Act. I believe this legislation contained important 
reforms that needed to be passed this year. The Consumer Bankruptcy 
Reform Act of 1998 received bipartisan support and passed out of the 
Judiciary Committee by a 16-2 vote. I was concerned that adding this 
amendment would stop the underlying bill from passing this Congress.
  For all of the above mentioned reason, I chose to vote to table the 
minimum wage increase amendment at this time.

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