Will Christiana Care's move to raise base pay to $15 an hour spread through Delaware?

Christiana Care's surprise announcement this week that it will begin paying its lowest-wage workers $15 an hour is providing ammunition to both sides of the fight over Delaware's minimum wage.

The General Assembly ended its last session in July with a bitter fight over this exact issue, resulting in a compromise that will bring the state's base rate to $9.25 by the end of 2019.

Some lawmakers want to follow Christina Care's example. They see what Delaware's largest private employer did as evidence more help is needed to ensure low-income workers can earn something closer to the $15 minimum wage that is now part of the state Democratic Party's official platform.

AFTER THE HIKE:Christiana Care CEO Janice Nevin says $15 hourly wage will not drive up rates

"The economy has changed and more skilled workers are depending on what we used to think of as a starting wage to survive," state Rep. Ed Osienski, D-Newark, said. 

Christiana Care is not alone in raising its base pay. Walmart raised its bottom wage to $11 in February. Target went to $12 in March. And Amazon set its lowest wage at $15 in October.

Republicans and the business community see those moves as proof the private sector is capable of increasing workers' pay without a government mandate they say could harm the small businesses that collectively employ nearly half of the state's workforce.

"That's great for these huge corporations that can afford to make those decisions, but there are hundreds of small mom-and-pop shops that don't have those margins or the leverage to control costs with suppliers," said James DeChene, senior vice president of the Delaware State Chamber of Commerce.

"These are businesses that are trying to compete with the big boys, and they're only seeing their unemployment insurance, workers compensation and health care costs going up," he said. "At what point do you start pricing these businesses out of the market?"

The effort to halt future minimum wage hikes in Delaware might be a losing battle, however.

Democrats recently expanded majorities in the state Senate and House. That, combined with a wave of retirements among lawmakers, means the old paradigms that once regulated when minimum wage and other issues were politically feasible have shifted.

Former state Sen. Robert Marshall of Wilmington, for instance, previously could be counted on to propose a minimum wage hike every year, while his Democratic colleague Brian Bushweller, whose district included two casinos that pay minimum wage, often served as the swing vote. Both of those lawmakers are now retired.

A deal between them last year allowed Marshall's last minimum wage bill to clear the Senate, but the legislation was held hostage by Republicans in the House whose votes were needed to pass an infrastructure spending bill.

A last-minute compromise that came as the sun was rising on July 1 produced a 50-cent increase to the state $8.25 minimum wage that will take effect on New Year's Day, followed by a second 50-cent hike on Oct. 1, 2019.

To get Republicans on board, the deal created a new youth wage for anyone younger than 18 and a training wage for new hires in their first 90 days, both of which will pay $8.75 once the multiphase hikes kick in.

With a month to go before the Legislature reconvenes, Osienski and other lawmakers say it is too soon to know what the next minimum wage bill might include.

Potential legislation could cover additional wage hikes in 2020 and beyond, tying future increases to inflation and the elimination of the youth and training wages, or some combination of all three.

"I'm not sure what the downside is for the youth and training wages because it provides an incentive to get more teens and seasonal workers into the workforce," said Carrie Leishman, president of the Delaware Restaurant Association. "I think the focus should be on helping the business community grow the economy so we can get more people working, not less."

State Sen.-elect Darius Brown, D-Wilmington, said he is pro-business and commends Christiana Care for its decision. He believes further increases in the minimum wage would help the state grow the middle class and reduce poverty.

"The average two-bedroom apartment in this state costs about $1,100 a month, and the fact is $9.25 an hour only gets you about $1,500 a month before taxes," he said. 

Contact reporter Scott Goss at (302) 324-2281, sgoss@delawareonline.com or on Twitter @ScottGossDel.

MUST-READS:

Treasurer-elect Colleen Davis faces trial over traffic charges

Former U.S. House candidate Scott Walker switches to Democrat, weighs presidential bid

Delaware City Refinery biofuel opponents to judge: Make the state do its job

Delaware officials eye re-entry help for prison inmates before their release