Wage hike for federal contract workers limited

[Omaha Steve]

http://apnews.excite.com/article/20140129/DABKBL5O0.html

Jan 29, 3:23 AM (ET) By SAM HANANEL

WASHINGTON (AP) - President Barack Obama's plan to raise the minimum wage for federally contracted workers is winning praise from unions and labor activists, but it could take a year or more before any hikes take place and the impact may not be as widespread as some advocates had hoped.


President Barack Obama gives his State of the Union address on Capitol Hill in Washington, Tuesday Jan. 28, 2014. (AP Photo/J. Scott Applewhite)


Obama announced in his State of the Union address Tuesday that he will sign an executive order setting the minimum wage for workers covered by new federal contracts at $10.10 an hour, a hefty increase over the current federal minimum of $7.25.

"I think it's a huge step forward in that every action headed in the direction of lifting wages puts pressure on Congress to act," said Mary Kay Henry, president of the Service Employees International Union, which has spent millions to help federally contracted workers and fast-food employees organize protests and strikes to demand higher wages.

But the increase is only expected to cover about 10 percent of the 2.2 million federal contract workers overall, since most of those employees already make more than $10.10. It won't take effect until 2015 at the earliest and doesn't affect existing federal contracts, only new ones.

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