Washington Sun, March 7, 2013
At a hearing before the Senate Finance Committee, business owners, economists, low wage workers and other supporters testified in favor of increasing Maryland’s minimum wage. At the same time, the Raise Maryland campaign announced new support from Costco, the U.S. Women’s Chamber of Commerce and more than 70 Maryland businesses, who signed onto a letter of support organized by Maryland Business for a Fair Minimum Wage.
“At Costco, we know that paying employees good wages makes good sense for business,” said Craig Jelinek, Costco’s President and CEO in a statement. “We pay a starting hourly wage of $11.50 in all states where we do business, and we are still able to keep our overhead costs low. An important reason for the success of Costco’s business model is the attraction and retention of great employees. Instead of minimizing wages, we know it’s a lot more profitable in the long term to minimize employee turnover and maximize employee productivity, commitment and loyalty. We support efforts to increase the minimum wage in Maryland.”
The proposed legislation (HB 1204/SB 683) would raise Maryland’s minimum wage in three steps to $10 by 2015 and index it to the cost of living thereafter so that it doesn’t lose value over time. The legislation also incorporates a 20 percent increase for tipped workers (from 50 percent to 70 percent of the current minimum wage). The bill has 58 co-sponsors in the House and 25 co-sponsors in the Senate. The Women Legislators of Maryland Caucus and Legislative Black Caucus of Maryland have also announced their support for the measure.
“Raising the minimum wage will help small businesses like my members by putting more money in the pockets of Maryland’s workers, which will boost spending and job creation on Main Street,” said Margot Dorfman, chief executive officer of the U.S. Women’s Chamber of Commerce, which represents 500,000 business owners nationally and 7,500 members in Maryland. “While some try to portray a minimum wage increase as a fight between business and workers, raising the minimum wage is in reality good for both.”
More than 70 businesses, including retail stores, restaurants, landscapers, health providers, consultants, publishers, bakeries, automotive service and personal and home services from around the state, from Hagerstown to Baltimore City and Harford County to Montgomery County and the Eastern Shore have signed on to support a minimum wage increase. Other business supporters include Costco, American Income Life Insurance, Annapolis Sustainable Business Alliance, American Sustainable Business Council, Business for Shared Prosperity, Green America, National Latino Farmers & Ranchers Trade Association, and Responsible Wealth.
Andy Shallal, owner of a group of restaurants – Busboys and Poets and Eatonville – located in Maryland, the District of Columbia and Virginia and one of the signatories, said in written testimony, “Busboys and Poets was founded in 2005 and started with 30 employees. Today we have over 500 employees. Fair pay is fundamental to our success. Our minimum wage at Busboys and Poets and Eatonville is $10.25 per hour. I just signed another lease last month for another Busboys and Poets! Don’t believe it when you hear business will suffer if the minimum wage goes up. It will help our economy grow and thrive.”
Research has found that more than 500,000 Marylanders would benefit from the increase, putting $778 million more in their pockets in the next two years. At the same time, businesses would benefit from nearly half a billion dollars in new consumer spending and would create more than 4,000 new full-time jobs as they expand to meet increased demand.
“When the minimum wage fails to keep pace with inflation, the purchasing power of the wage declines and cash-strapped minimum wage workers are forced to cut back on basic goods and services,” said Robert G. Lynch, professor of economics at Washington College. And when low-paid workers do not enough to afford basic expenses, the economy as a whole suffers.”