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Biden boosts minimum wage to $15 for federal contract workers

President Biden is giving a raise to hundreds of thousands of people with the stroke of his pen.

Biden plans to sign an executive order Tuesday that would raise the minimum wage to $15 an hour for federal contract workers.

“This executive order will promote economy and efficiency in federal contracting, providing value for taxpayers by enhancing worker productivity,” the White House said in a statement.

There are an estimated 5 million contract workers in the federal government but it’s not clear how many make less than $15 an hour now.

The increase would amount to a whopping 37% pay hike for workers who earn the current minimum of $10.95 an hour.

Aides said the increase would help increase worker productivity and give contract workers more stability.

The White House said the workers would include cleaning professionals and maintenance workers, nursing assistants who care for veterans, cafeteria workers providing for the military and laborers who build and repair federal infrastructure.

The minimum wage would be indexed to inflation, so it would automatically increase with each year to reflect changes in prices.

The move is the latest effort by Biden to fulfill his campaign promises to help American workers. It comes a day after Biden announced a White House panel to encourage workers to join unions and bargain collectively.

Biden has pushed to establish a $15 hourly minimum wage nationwide for all workers, making it a part of his coronavirus relief package. But the Senate parliamentarian said the wage hike did not follow the budgetary rules that allowed the $1.9 trillion plan to pass with a simple majority, so it was not included in the bill that became law in March.

Democrats plan to introduce a standalone bill to raise the minimum wage but its prospects are uncertain in the narrowly divided Congress.

Source (Ny Daily news)

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