Chicago Mayor pushes for $13 minimum wage

July 10, 2014

Earlier this week, a task force appointed by Chicago Mayor Rahm Emanuel released a recommendation that the city’s minimum wage be raised to $13 an hour by the year 2018.

According to the Chicago Tribune, state lawmakers are expected to also come up with a solution following the November elections, and the task force “don’t want to deter” a statewide wage increase.

Chicago’s current minimum wage is $8.25.

The task force was created by Mayor Emanuel in May, following protests pushing for a $15/hour amount. The $13/hour compromise was approved by a vote of 13-3.

Voting against the proposal, according to the story, were representatives of the Chicagoland Chamber of Commerce, the Chicago Retail Merchants Association and the Illinois Restaurant Association. A rep from the IRA said his group would prefer one set minimum wage for the entire state.

The task force’s recommendation is that the wage is increased by $1.25 throughout the next three years, and $1 in 2018. After that, the group suggests annual increases based on the rate of inflation.

IFA: Recommendations will result in job losses

In response to the task force’s recommendations, Steve Caldeira, the International Franchise Association president and CEO said their “progressive nature” will “undoubtedly result in lost jobs and higher prices for consumers.”

“The franchise industry has outpaced growth of the overall U.S. economy for the last five years, and that’s because we create much-needed entry-level jobs, career advancement opportunities and small business ownership opportunities that fuel the American Dream,” he said in a statement. “Moving forward, we will work with the Mayor and the City Council as the legislative process continues to ensure equitable treatment for franchisees under any potential wage increase, and to mitigate its impact for employers, employees and consumers.”

Topics: Franchising & Growth, Operations Management, Staffing & Training, Trends / Statistics

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