Birmingham Minimum Wage Vote Prompts Concern

A recent decision by Birmingham leaders to raise the city's minimum wage has gotten a lukewarm reaction from some workers.

Minimum wage employees in the city say the measure sounds like a step toward financial stability, but it has also prompted concerns about an increasing cost of living.

The Birmingham City Council passed an ordinance late last month to establish an hourly minimum wage of $8.50 by July 2016 and $10.10 by July 2017. Future increases would be tied to inflation. Alabama has no state minimum wage, so the federal wage floor of $7.25 per hour applies.

Some local fast-food and retail workers say they are excited about the proposal, but they are doubtful they will see any real improvements in their buying power or long-term economic outlook.

Local economists also say they're concerned about job growth and the city possibly putting itself at a competitive disadvantage compared to other cities in the region.

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