Nightly Business Report (NBR)
Produced by CNBC, September 7, 2015
WATCH VIDEO Minimum Wage begins at 7:50 Watch on YouTube
SUE HERERA, NIGHTLY BUSINESS REPORT ANCHOR: Good evening, everyone. And welcome to a special Labor Day edition of NIGHTLY BUSINESS REPORT. I`m Sue Herera. Tyler is off tonight.
Labor Day, a day dedicated to the American worker. It`s the perfect time to discuss employment, a key gauge of economic health that everyone has an eye on. Tonight, we`ll examine the important issues that lie ahead for the job market from minimum wage to where the jobs are. We`ll find out which parts of the country are geared up for growth, and we`ll even tell you the best cities for pay raises. ...
HERERA: This year, the debate over wages has been front and center.
The federal minimum wage remains stalled at $7.25 an hour. The amount it`s been at for the past six years. Slowly, cities have been taking the issue into their own hands, and hiking pay. But not all small businesses are waiting for their city council to decide how to best compensate workers.
Kate Rogers (NYSE:ROG) tells us what Main Street is doing to level the pay scale.
(BEGIN VIDEOTAPE)
KATE ROGERS, NIGHTLY BUSINESS REPORT CORRESPONDENT: Bar Marco, a small restaurant in Pittsburgh, Pennsylvania, implemented a flat wage of $35,000 a year for its employees this spring. Servers and backup house staff are now on an even playing field. They also get a stake in the restaurant via profit sharing and health insurance.
JUSTIN STEEL, BAR MARCO CO-OWNER: A lot of times restaurant employees, it`s viewed as a job, not as a profession or career. The people that we have here don`t think of it like that. This is a career for them. So, we want to treat them more like that and pay salary and offer benefits and health care — the things that you normally associate with a "real world" job.
ROGERS: Workers are gearing up to receive their first quarterly bonuses ever, practically unheard of in the restaurant industry. Though employees like Zac Cerquerda are paying close attention to store operations.
ZAC CERQUERDA, EMPLOYEE: It`s more of just working smarter. So, I mean, if we see something that needs to be used up, if it doesn`t, it`s a sense, you know, not only the restaurant loses money, but I`m losing money.
ROGERS: While the common message on Main Street is small businesses can`t bear the burden of wage hikes not driven by the market, some are proving that theory wrong, paying well above both state and federal wages.
Across the country, at Earth Friendly Products in Garden Grove, California, Kelly Vlahakis-Hanks paying her workers $17 an hour. The household cleaning product manufacturer has always paid above minimum wage, because she says it`s the right thing to do. The company has facilities across the country, and retails in big name stores, including Walmart.
KELLY VLAHAKIS-HANKS, EARTH FRIENDLY PRODUCTS: If the minimum wage had been adjusted for inflation over the years, it would be nearly $22 an hour. And, of course, I`m not advocating taking it that high at this juncture, but we realize we needed to do something to create a living wage for our employees.
ROGERS: True to its mission, ESP also gives rebates to workers who install solar panels on their roofs or drive green vehicles. Workers say it`s made all the difference.
BELINDA MARTINEZ, WORKER: Most of my money went to paying child care, and then I was left with a couple of dollars, and I had to decide, OK, what do I want to do, do I want to pay my utility bills, or do I want to bring food to the — you know, for my family? But now, with this increase, we have a home now, and we have transportation. And I`m able to provide for them.
ROGERS: For NIGHTLY BUSINESS REPORT, I`m Kate Rogers (NYSE:ROG).
Copyright 2015 CNBC
About NBR: “Nightly Business Report produced by CNBC” (NBR) is an award-winning and highly-respected nightly business news program that airs on public television. Television’s longest-running evening business news broadcast, “NBR” features in-depth coverage and analysis of the biggest financial news stories of the day and access to some of the world’s top business leaders and policy makers.