[ad_1]
Joe Biden will have to sign an executive order forcing federal contractors to pay a minimum wage of $ 15 an hour while the U.S. president increases pressure on companies to offer higher pay to their employees.
The Biden measure, expected Tuesday, comes as the president’s efforts to convince Congress to pass a nationwide federal minimum wage increase from $ 7.25 an hour to $ 15 an hour have led to seek unilateral solutions.
According to senior government officials, Biden’s executive order will order government agencies to demand salary payments of $ 15 per hour on all contract applications beginning in January 2022, implementing them in all contracts in March next year. Higher wages will also have to be included in the annual contract extensions and indexed to inflation.
Biden has turned a higher minimum wage into a cornerstone of his economic agenda, but has not garnered enough support on Capitol Hill to get it approved as part of the $ 1.9 million stimulus package. Shortly after taking office, he ordered officials to explore imposing a higher minimum wage on federal contractors, which led to Tuesday’s expected announcement.
Many Republicans and some moderate Democrats fear that higher minimum wages will reduce employment by imposing excessive burdens on businesses. But senior Biden administration officials reject such criticism.
“It would not lead to a reduction in employment. . . but it would increase worker productivity and then create higher quality work by increasing workers ’health, morale and effort,” said a senior administration official, who noted that the proposal had been studied by the board of trustees. ‘White House economic advisers.’ Turnover would be reduced, allowing employers to retain maximum talent and reduce costs associated with selection and training positions. ‘
Federal contractors currently pay at least $ 10.95 an hour to their workers, following an executive order signed by former President Barack Obama. Online workers for an increase in the Biden plan belong mostly to the services sector, described by the White House as cleaning professionals, maintenance workers, nursing assistants, cafeteria workers, and workers building and repairing federal infrastructure. .
The executive order would eliminate the ability for federal contractors to pay a lower minimum wage for tip-dependent workers, which is currently $ 7.65 per hour.
Biden’s push for higher minimum wages has helped him estimate his economic agenda in unions and the Democratic Party’s left flank. The U.S. president will have a new opportunity to discuss his support for politics during his speech to Congress on Wednesday.
Some lawmakers have tried to find a compromise on Capitol Hill to see if an increase in the federal minimum wage to at least $ 11 or $ 12 an hour may be acceptable – many Democrats believe this doesn’t get what the economy needs, while many Republicans they think this increase is a step too far.
[ad_2]
Source link
