Never let loyalty stand between you and a better deal. Mind you, loyalty and a good relationship with your present employer should lead you to give him the option of matching whatever deal you may find elsewhere. But, in this case I would think moving on is your only real option.
The reality is, you aren't in a great position. Your wages are subpar to middling by your own admission and you have no benefits. Enjoying the relationship you have with your employer is a valued thing, but it doesn't pay the bills or keep you healthy in an emergency. Look for better wages. Look for benefits, and never undervalue them. You are, it would seem, young and healthy. You may not think insurance is that important, but in a split second it could become the most important thing in the world. You may not think a pension or retirement plan is a big deal, but it is and many years from now you will regret not starting one sooner.
(*Union comment deleted.) If you are willing to accept the first offer made, and never bother to look around and "feel out" the prevailing market, you set yourself up to be taken advantage of. Your employer may seem like a great guy, nice firendly and easy to get along with. But if he's paying you less than scale and offering no benefits at all, he's no friend at all, IMO. Just because a man can smile and speak friendly while he twists the knife in your back, that doesn't make the knife wound less of a problem.
You now have your Journeymans card. Assuming you have the skills to back that up and the ability to put that knowledge to use, you are in a good position to find a better deal. Shop the market, look at all the options and make the decision that offers you the best sitaution for you. That may be hooking up with a different contractor, perhaps a larger one (which usually provides better benefits), or it might mean working with your current employer to arrange a better deal (having a competing offer helps a lot with this)
...(*Union comment deleted.)
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