By Amanda Verrette
Legislative Gazette, May 25, 2012
Even though Gov. Andrew Cuomo has acknowledged the contentious minimum wage debate will likely not be resolved this legislative session, supporters of a $1.25-an-hour increase remain optimistic and continued to push for the measure late last week. More than 200 business owners and executives have signed on to a Business for a Fair Minimum Wage Statement, calling on the governor and the Senate to pass legislation to increase the state's minimum wage.
"We wouldn't be wasting our time if we thought it was a done deal," said Mark Jaffe, president and CEO of the Greater New York Chamber of Commerce.
Large chain retail lobbyists, said Jaffe, are making people believe a raise in minimum wage would "chase businesses out of the state." ...
The wage hike bill (A.9148/S.6413) is sponsored by Assembly Labor Committee Chairman Keith Wright, D-Harlem, and Sen. Jeffrey Klein, D-Morris Park, and would raise New York state's minimum wage from the current $7.25 to $8.50 per hour and index the rate to inflation each year. The measure passed the Assembly May 15.
Addressing statements that an increase to the state's minimum wage would negatively affect small businesses, Melanie Beam, president of Capital District Local First, an organization promoting locally owned and independent businesses, said small businesses are more likely to pay above the minimum wage.
David Bolotsky, founder and CEO of Uncommon Goods, a Brooklyn business boasting "cool and unusual gifts," said people can't live making $7.25 per hour and "questions if you can live on $8.50 an hour, particularly in New York City, but it's a step."
Uncommon Goods starts seasonal workers at $11 per hour and Bolotsky says regardless of the decision regarding minimum wage this session, he is increasing the seasonal wage to $12 per hour next year.
In addition to the support from small businesses, large businesses like Costco, a leading wholesale company, also advocate for a higher minimum wage.
Jeff Long, senior vice president and general manager of Costco's northeast region, said Costco has the lowest prices among their competitors and pays the highest wages to their employees. Starting wages at Costco are $11 per hour and the average wage at the company is $20 an hour.
Costco's higher wages results in more productive employees and cheaper costs due to a lower turnover rate, said Long. He notes the company's turnover rate is "less than 10 percent, which is exceptionally low in retail."
According to a report released last Thursday by the Fiscal Policy Institute, an estimated 880,000 employees would directly benefit from a minimum wage increase, representing 10.1 percent of all New York state workers.
"If it doesn't get passed this year," said Jaffe, "It's not an issue that's going away." ...
Silver said that although "the Senate talks about creating jobs," the Assembly bill to raise minimum wage is "the best way to create jobs" and would put money into local economies immediately. ...
Copyright 2012 Legislative Gazette