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Among those on hand to witness Gov. Tom Wolf signing an executive order that raises the minimum wage to $10.15 an hour for a narrow swath of the state's workforce are (at left) Sen. Christine Tartaglione, D-Philadelphia, and Rep. Patty Kim, D-Harrisburg, both of whom sponsored legislation calling for a boost in the statewide minimum wage for all workers.

(Jan Murphy/PennLive)

More than 450 state government workers - including part-time clerks, tax season typists, custodians among others - received a pay hike on Monday as a result of an executive order signed by Gov. Tom Wolf.

The directive raised the minimum wage to $10.15 an hour for employees under the governor's jurisdiction, effective immediately.

Starting July 1, it also extends the order to employees of potentially as many as 109 vendors that negotiate contracts with the commonwealth. Examples of those vendors provided by the administration perform such services as custodial, landscaping, delivery/ride providers and food preparation.

Going forward, those state and contract employees earning minimum wage would see the hourly wage they pay rise by an inflationary amount that would be rounded to the nearest nickel.

"Ten dollars and fifteen cents is really not a family sustaining wage but it's better than where we are right now," Wolf said at a Capitol news conference on Monday. "This is fair for workers who too long languished below the poverty line which is where the current minimum wage has them living."

He urged the Legislature to follow up this executive order by passing legislation that would make the $10.15 an hour minimum a statewide mandate, which won a round of applause from a large crowd of union representatives and other advocates who gathered to witness the signing. Currently, no state has a statewide minimum that high.

The state's minimum wage has been $7.25 an hour since 2009. An estimated 1.2 million Pennsylvanians - mostly working adults - currently earn less than $10.15 an hour, according to the Wolf Administration.

Wolf called for an increase in the minimum wage during his 2014 gubernatorial campaign as well as in his budget address this year and last.

However, Senate Majority Leader Jake Corman, R-Centre County, said other than that, the governor has not pushed this issue in conversations with legislative leaders.

"The sudden attention to the issue indicates that governor must have noticed that, during the last year, his accomplishments are limited at best," Corman said in a statement. "Choosing to take symbolic executive action on this issue instead of working with the Legislature underscores his failures to collaborate."

The administration estimates the higher minimum wage for commonwealth employees will cost $1.5 million for the increased payroll and benefits costs in 2016-17 and be taken out of agency budgets.

The cost of applying it to employees of contractors and subcontractors who perform direct service to the commonwealth or spend at least a fifth of their working time on services for the commonwealth is estimated at about $2.6 million.

The executive order wouldn't apply to the rest of a contractor's workforce whose time is spent on non-commonwealth work. It also excludes Department of Human Service grants with counties to provide social services, as well as state-related universities or state agencies not under the governor's jurisdiction such as the Pennsylvania Turnpike Commission or the 14 state-owned universities.

"This is fair for workers who too long languished below the poverty line which is where the current minimum wage has them living," Wolf said. "We need legislation that applies to all employees, all workers in Pennsylvania."

Wolf pointed out businesses would benefit as well.

"It boosts morale paying a fair wage. It also improves productivity. It reduces turnover. And when you have a reduction in turnover, you also have a reduction in the costs associated with high turnover, training, getting people acclimated to your business," he said.

But business community representatives had a mixed reaction to the idea.

"By mandating that businesses bidding on state contracts raise their minimum wage to $10.15, the governor is preventing small businesses from entering the bidding process," said Neal Lesher, National Federation of Independent Business' legislative director. "Some small businesses simply cannot afford to pay inexperienced, entry level workers that much more per hour."

The Pennsylvania Chamber of Business and Industry also is not a fan of the idea. Its President Gene Barr said history has shown minimum wage increases leads to job loss or reduced hours. He called it unfortunate the governor made this decision.

The chamber has advocated for spending money instead on workforce development opportunities so low-skilled employees can get the training to qualify for the higher-paying jobs that employers have trouble filling. House Republicans also believe that is where the state's focus should be aimed, said its spokesman Steve Miskin.

Charlie Crystle, CEO of Lancaster Food Company, who was on hand for the governor's announcement, disagreed. "That's an argument that supports exploiting people for the benefit of the businesses," he said . "If the chamber wants to argue that keeping people in poverty who show up and work for you everyday, .... I would say that's an unethical position."

His organic food company, which is not affected by the governor's executive order, pays a $14 starting wage. He said that helps reduce turnover and attracts a higher quality employee.

"Someone who comes to work for you all day long and builds value for you and you bring them back the next day and the next day, clearly this is someone you value for your businesses," Crystle said. "But when they come home and can't pay the bills, that's not something that we think is good for our businesses, for our employees, for our community. All it does is shift the cost to taxpayers in another way in social service agencies."

Harrisburg restaurateur John Trayton, who also was in attendance at the news conference, echoed that sentiment but pointed out it's good for his business in another way. He was surprised to learn that 4 percent of his business' revenue comes from his own employees patronizing their workplace.

"If I was paying them less, they would not be coming in," Trayton said. "The added bonus is they come in with friends, come back with people. They become your advertising."

Rep. Patty Kim, D-Harrisburg, has been championing an increase in the minimum wage since she arrived in the Legislature in 2013. She too was on hand for the executive order's signing.

People who earn the minimum wage need their paychecks to make ends meet.

"They don't save their money because they can't," Kim Said. "They spend their money quickly, which immediately boosts the economy."

*This story has been updated to include the number of vendors who do business with the commonwealth who may be affected by the executive order.