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Now, wage bill divides them Ex-election foes differ on minimum-pay changes before lawmakers By PETER WONG SALEM -- Last fall, they fought each other for the District 51 seat in the Oregon House. This time, it's the minimum wage that separates Jason Atkinson, a Republican from Jacksonville who won the seat, from Lon Holston, a Democrat from Central Point who is a labor union lobbyist. At issue is a proposed change in Oregon's higher minimum wage that voters approved in 1996. The bill is in front of the House Business and Consumer Affairs Committee, which is hearing it this morning. Atkinson sits on the committee, and Holston plans to testify on behalf of the Association of Western Pulp and Paper Workers. House Bill 2793 would exempt many tipped workers and minors from the state's minimum wage of $6.50 per hour, the nation's highest. For workers who average $3.50 per hour in tips, their minimum wage would stay at $6.50, but the bill would exempt them from future increases in the minimum wage. For workers hired after Jan. 1, 2000, who average $4.50 per hour in tips, the minimum wage would be $5.50. The bill also would create a minimum wage of $6 per hour, 50 cents less than for adults, for all workers under age 18 for their first 60 days on the job. "I want to hear all the testimony first," Atkinson said. "But I like the concept. I also like the fact that 43 states have a version of this, and this bill has some protections that other states do not have." Laws in 43 states allow businesses a "tip credit" against the minimum wage, as does federal law. Under federal law, which sets a minimum wage of $5.15 per hour, the tip credit lets employers pay tipped workers just $2.13 per hour. The Oregon Restaurant Association is the main supporter of the state bill. A similar bill it pushed two years ago failed on a 30-30 tie in the House; six Republicans switched to make the final vote 36-28. "To me, it's common sense what the effects will be of raising wages outside market forces," said House Majority Leader Steve Harper, R-Klamath Falls, who led the failed effort in 1997. "It's going to reduce the hours people work, perhaps reduce jobs and raise prices. I think it's incumbent on us to take a hard look and make a tough decision to try to minimize those effects on small businesses." But to Holston, whose union members earn more than the minimum, opposition to the proposed changes is a matter both of principle and practicality. "Measure 36 in 1996 gave Oregonians a raise, not just to selected workers but to everybody," he said. "This bill targets groups of workers who can least afford it." Holston said the bill would hurt single parents, who may work in lower-priced restaurants and other businesses where tips may not be so lucrative, and also family members of his union workers. "Some of our members have family members -- even grandparents -- working in those industries who are going to suffer," he said."I have two kids in college, and both are paying for college by working in the restaurant industry. The small amounts of money they make help them keep their student loans down and live on their own at the same time -- and they live in Eugene." Holston said he has talked with Atkinson, and they agree to disagree about this bill. "I doubt that it causes any friction between us," Holston said. "He has to do the job of an elected representative -- and there are tough choices to make." Mail Tribune Copyright � The Mail Tribune 1999, Medford, Oregon USA