Op-Ed By Danny Winter
AL.com, Alabama Media Group, July 28, 2015
As a small business owner in Birmingham, I support raising the minimum wage to $10.10 an hour. This would be good for customers, good for businesses, and good for our city's economic health.
Fair wages are at the core of my business success. I have been in business for over 20 years. I own two eateries: Crestwood Coffee Company and Buck Mulligan's, an Irish pub near the University of Alabama at Birmingham. Most of our 30 employees earn at least $10 an hour today. Paying fair wages keeps my staff happy, employee turnover rates low and the high costs associated with turnover to a minimum.
When employees earn enough to be able to pay their bills and meet their basic needs, it makes a world of difference for the success of my businesses. My turnover rates are far lower than the industry average, which can be as high as 100% per year. Turnover is very costly to a business, as hiring and training a replacement can cost $1,000 per person. Even as I pay higher entry wages, I save significant money in hiring and training costs by decreasing turnover as well as reducing the costly errors and waste that come from inexperienced new staff.
Fair wages also mean my staff are more engaged in our mutual success and better able to focus on their work rather than worrying about how they are going to make rent or pay other bills. They are more productive and dependable. This yields better quality products and services, and creates a more welcoming atmosphere for our customers. My customers appreciate getting to know my staff over time and being served by someone they know. From lowering turnover costs to improved productivity, product quality and customer service, paying higher wages has been a win-win-win for my businesses, my customers and my staff.
The $7.25 minimum wage that's been in effect since 2009 is bad for business and bad for Birmingham. If Birmingham had a $10.10 minimum wage, it would boost the consumer spending that businesses depend on. Most businesses have a lot more customers than employees. When the minimum wage is too low, like it is now, it weakens the consumer demand that drives sales and hiring. A higher minimum wage will strengthen business and our local economy.
Most small business owners agree with me that a higher minimum wage makes good business sense.
According to a national poll of small business owners, a strong majority (61 percent) supports an increase in the minimum wage to $10.10. Like I do, these businesses know that decent wages increase consumer demand, drive job creation, increase worker productivity and improve, product quality, and customer service. A growing number of cities and states have raised their minimum wage, including Arkansas, Nebraska, South Dakota, Kansas City, MO and Louisville, KY. Others, such as St. Louis, MO, and Lexington, KY are proposing to do the same.
I urge the City Council to enact a city minimum wage of $10.10 to benefit Birmingham's workers and businesses and give our local economy a great pick-me-up.
Danny Winter is a long-time resident of Birmingham and the owner of Crestwood Coffee Company and Buck Mulligan's Irish pub.
Copyright 2015 Danny Winter