Sunday, June 13

Biden Raises the Minimum Wage for Government Outsourced | Economy


A Transportation Security Administration agent attends a traveler at LaGuardia airport in New York in November of last year.
A Transportation Security Administration agent attends a traveler at LaGuardia airport in New York in November of last year.John Minchillo / AP

What was a campaign promise by Joe Biden, to increase the minimum wage for all workers in the country from the current $ 7.25 to 15, is going to come true, in part, after the signing this Tuesday of a decree by part of the president of the United States. The president establishes with his decree that all those companies “under contract with the federal government pay a minimum hourly wage of 15 dollars” to their workers, as reported by the White House.

The week started with the signing last Monday of another executive order with which the Biden-Harris Administration (this is how the White House wants this Administration to be known) ordered the creation of a working commission to promote labor organizing, with a team that will be led by Vice President Kamala Harris. The idea is to use federal government resources to help stem the decline in union membership in the nation. Since coming to power, Biden has reversed the rules of Donald Trump’s term that weakened worker protection.

In addition to the two previous initiatives, the White House is ready to execute with a strong hand that the American Treasury (IRS, acronym in English) recovers or recovers, over the next 10 years, up to 700,000 million of unpaid taxes, to which will give the IRS more authority and 80,000 million dollars with the ultimate goal that the rescued money finances its ambitious economic agenda.

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With this reinforcement of the Treasury, the president intends to apply a strong hand on corporations and on individuals who evade the payment of federal taxes. With the money raised – which had been eluded – the Biden-Harris Administration intends to finance the so-called American Family Plan, a program that it will announce before its first Union address, which will take place this Wednesday in the US Congress. The American Family Plan is designed to provide hundreds of billions to childcare —with an impact on the scourge of child poverty— and that workers who fall ill have economic coverage when they cannot work, among other projects .

The measure to increase the minimum wage for workers who are hired by federal companies or subcontractors will begin to apply at the end of March 2022 for all new contracts. Then it will be done with contract renewals, which are generally carried out every year. Salaries will then be increased based on annual inflation.

In the United States, the current minimum wage is $ 10.95 an hour for these workers, who are not civil servants, but work for the federal government of the nation through companies under contract with the state. According to the White House, the measure will affect “hundreds of thousands of workers”, from maintenance or upkeep workers of federal buildings, waiters in government cafeterias or assistants of war veterans. The Administration has not indicated the exact number of beneficiaries. The measure ensures that “hundreds of thousands of workers do not have to work long hours, but live in poverty,” according to Administration sources.

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