``My hope is that this pay raise will allow families to better their lives," said Karen Arsenault of Lynn, 36, a single mother who now earns $7.75 an hour as a housekeeper.
Arsenault, one of 6,400 low-wage workers in Greater Lynn, said she is planning to set aside the extra cash -- about $500 a year -- to buy a used car, something she and her 11-year-old son, Connor, have gone without for the past three years. Arsenault said she had to sell her car to pay some unexpected bills. These days, she depends on buses to get to her job at a nursing home in Saugus and downtown to buy groceries.
The legislation passed by state lawmakers Monday night -- over the objections of Governor Mitt Romney, who had earlier vetoed the measure -- means that the state's minimum wage will increase from $6.75 an hour to $7.50 on Jan. 1 and jump to $8 in 2008. The Legislature unanimously overrode the governor's veto, approving the first increase in the state's minimum wage since 1999.
The increase is expected to affect at least 315,000 workers statewide, including at least 40,000 in the northern suburbs, according to a study by the nonprofit Massachusetts Budget and Policy Center.
Many of those low-wage earners tend to work in the service sector, like Arsenault, or in retail stores, hotels, or restaurants, according to the study. The data include people earning the minimum wage and those, like Arsenault, who earn slightly more. The study found that of those who will be affected by the increase, 75 percent are age 20 or older, 60 percent are women, and almost half work full time.
Critics of the measure said the wage increase might make some employers more reluctant to hire new employees, particularly in entry-level positions that typically have high turnover. Moreover, the wage increase is likely to present a dilemma for some local businesses, said Jon B. Hurst, president of the Retailers Association of Massachusetts, which represents about 3,000 retailers and restaurant owners.
``Do you hire less people to keep labor costs down, or do you raise prices?" Hurst said. Usually, he added, ``they do a combination."
But advocates lauded the Legislature's override of Romney's veto, saying it would ease the financial pressures on low-wage earners battered by ballooning energy costs and rising rents.
``This override is good for workers, good for their families, and good for the economy," said Carl Nilsson, chairman of Neighbor to Neighbor, a statewide group that works to improve the lives of workers at the lowest end of the wage scale. He added that during this year's legislative session, Neighbor to Neighbor also successfully advocated for a bill to expand healthcare coverage for poor families.
``I think this [minimum wage] bill sends a clear message: Hardworking people should not have to live in poverty," Nilsson said.
Judy Perlman, executive director of Tri-City Family Housing Inc., based in Malden, said the increase would provide some relief for the 250 households in Medford, Malden, Everett, and Revere served by the nonprofit, but not enough to lift them out of poverty.
``It's great, and I really support it, but it's just not going far enough," said Perlman. ``If you're making minimum wage and can only afford to pay $750 a month for housing, and the going rent is $1,200 a month, an extra $200 a month just isn't going to cut it. Ideally, we'd like to see more done for the working poor."
Perlman and other advocates for the poor said they would continue to press for bigger gains, for a ``living wage."
``I'm glad we're leading the nation, it's a step in the right direction, but a lot more work needs to be done to ensure that working families in Massachusetts are able to earn a living wage," said Nancy Crowder, executive director of Citizens for Adequate Housing Inc. in Peabody, which strives to help homeless families move out of shelters and into low-cost housing.
``A living wage of $30,000 to $40,000 a year would make it possible for parents to feed their children and pay their rent," Crowder added. ``We're not talking about fancy cars or plasma TVs; we're talking about being able to meet basic needs, about being able to pay bills on time."
Some business owners have suggested that the wage increase will have a ripple effect on the restaurant industry because those who already earn just above the minimum, like Arsenault, would now expect pay raises.
Janine Harrod, director of government affairs for the 2,000-member Massachusetts Restaurant Association, said she expects the wage increase will cause a jump in prices, particularly at fast-food restaurants.
``This will affect restaurants' bottom line," she said.
Paul F. Richardson, co-owner and operator of Richardson Farms Inc. in Middleton, said the measure will definitely have an adverse impact -- most notably on the wallets of the middle class.
``This bill isn't going to benefit working adults," said Richardson, whose dairy farm, known for its homemade ice cream and hormone-free milk, employs about 90 people each summer. ``It's going to benefit 14-year-old kids who are entering the workforce for the first time. They're the ones who earn minimum wage.
``And it is going to hurt a lot of people. The one it will hurt the most is the guy who's making $35,000 a year because he's going to have to pay more every time he goes to
Globe staff reporter Matt Carroll contributed to this report.
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