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Chicago's minimum wage fight officially kicks off with $15 proposal

Crain's Chicago Business - May 27, 2014, by Greg Hinz - Ending months of preliminaries, a group of 10 or more Chicago aldermen tomorrow is expected to introduce legislation to bring a $15 minimum wage to Chicago.

But at least for now, the measure faces a very uphill road, with Mayor Rahm Emanuel believed to favor some increase but not one of that size.

News of tomorrow's development came from Ald. Roderick Sawyer, 6th, who in a conference call with reporters today said that the measure raising the rate from the current $8.25 statewide figure would be phased in over time.

Mr. Sawyer did not provide further details but suggested that small businesses might be given more time to adapt than large companies.

He said "about 10" aldermen will co-sponsor the ordinance, most of them members of the City Council's progressive caucus. Another member of that group, Rick Munoz, 22nd, said he believes that, once introduced, the measure eventually will get support "in the high teens."

"In the high teens" is not enough to pass a bill in the 50-member City Council, where 26 votes are needed for a majority.

Mr. Emanuel last week appointed eight other aldermen to a panel that will recommend within 45 days how much to hike the minimum wage.

In announcing that move, the mayor did not say how much the wage should go up, only that it should rise because "Chicagoans deserve a raise." But, given Mr. Emanuel's extensive backing from business as he nears re-election, my suspicion is that he will end up favoring a hike that's less than that pushed by the Sawyer group. That would allow Mr. Emanuel to present himself as a moderate of sorts — someone who's for the working person but not an extremist.

Mr. Sawyer's announcement came at an event at which Raise Chicago, an advocacy group, released a report suggesting that a $15 minimum wage would bring substantial benefits.

Specifically, it said, the hike would boost wages in the city by a collective $1.5 billion, stimulating economic activity that would create 5,300 new jobs and $43 million in new tax revenue, while slashing job turnover rates "as much as 80 percent."

The move for an increase in the Illinois minimum wage is stalled, at least for now, but the issue has become a very hot subject nationally.

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