Schwarzenegger Threatens Federal Minimum Wage for Workers
Gov. Arnold Schwarzenegger is threatening to pay 200,000 state employees $6.65 federal minimum wage (which is about 1.45 less than California minimum wage), until they have a state budget for him to sign. They would also be prevented from hiring anyone, have overtime, and would have to terminate 20,000 nonessential employees. The state budget is a month overdue, and the new state fiscal year started July 1st. I think this is a very serious threat and bold move for Schwarzenegger. I’m sure some people are wondering how punishing state employees is going to help legislature come to an agreement on the budget. The answer is simple. Who can live on $6.65 an hour is California? If my wages were decreased to that amount I would personally put pressure on legislature to come up with something fast. Now imagine that by 200,000.
Once a budget is given that will balance the $15.2 billion dollar deficit, and have a plan that includes long tern budget reform, and a rainy day find state employees will receive their full salary retroactively.
http://news.yahoo.com/s/ap/20080724/ap_on_re_us/california_budget;_ylt=ApYr08H1OfpehRwFuyyBMzpH2ocA


