Gov. Schwarzenegger Cuts Jobs/Pay

Gov. Arnold Schwarzenegger signed an executive order today eliminating jobs for as many as 22,000 temporary state employees and reducing pay for about 200,000 state workers to the federal minimum wage of $6.55 per hour, portraying it as a stopgap measure to ensure the state can pay its bills without a state budget.

The Republican governor intends to reverse those moves once lawmakers reach a budget compromise, meaning the state would rehire temporary workers and give employees their entire back pay. The governor's order also imposes a strict hiring freeze and eliminates overtime but exempts workers in health and safety fields.

Schwarzenegger said the state's financial situation and the fact that no budget has been signed "leaves me with no easy choices."

"I have a responsibility to ensure that our state has enough money to pay its bills. This is not an action that I take lightly," he said. - Sacbee.com

It sounds harsh and all, but in reality public employees are paid less than their private counterparts.

Federal Minimum Wage Raised

WASHINGTON (AP) — About 2 million Americans get a raise Thursday as the federal minimum wage rises 70 cents. The bad news: Higher gas and food prices are swallowing it up, and some small businesses will pass the cost of the wage hike to consumers.

The increase, from $5.85 to $6.55 per hour, is the second of three annual increases required by a 2007 law. Next year's boost will bring the federal minimum to $7.25 an hour.

Workers like Walter Jasper, who earns minimum wage at a car wash in Nashville, Tenn., are happy to take the raise, but will still struggle with the higher gas and food prices hammering Americans.

"It will help out a little," said Jasper, who with his fiancee support a family of seven, and who earns the minimum plus commissions when customers order premium car-wash services.

The bus fare he pays each day to get to work already went up to $4.80 this spring from $4. "I'd like to be on a job where I can at least get a car," he said.

Last week, the Labor Department reported the fastest inflation since 1991 — 5 percent for June compared with a year earlier. Energy costs soared nearly 25 percent. The price of food rose more than 5 percent. - Associated Press

$6.55 is unjust; $9.00 is more like it.