By Editorial Staff
Workplace Weekly News, Jan 29, 2014
President Obama in his State Of The Union address called on businesses, mayors, governors to raise the minimum wage to $10.10 ... In a related development, small Business Owners Say, ‘Raise the Minimum Wage’ in a jaw-jaw with Secretary of labor:
Amanda Rothschild runs a small café in Baltimore in which she pays her employees just above the current federal minimum wage, and she does so because it’s good for her bottom line. She told me [Sec. Perez] that when you put more money in workers’ pockets, they stay on the job longer which reduces turnover and training costs: “Our training costs would be significantly higher if we paid lower wages and we had the kind of turnover that you typically see in a restaurant.” She also said that she wants to see an increase in the minimum wage so that more people in her community could spend money in her café.
John Shepley is co-owner of Emory Knoll Farms, a small wholesale nursery in Maryland. He makes a strong economic argument for paying those at the bottom of the income ladder a little bit more: “They’re spending 100-percent of their take-home pay in the local economy. It’s recirculating. They’re spending it on rent, groceries, cars, new tires – all the things you need to live.”
Lew Prince runs Vintage Vinyl, a record store in St. Louis and is a survivor in an industry that’s seen a significant downsizing in recent years. He echoed Amanda’s words that increasing the minimum wage would lead to worker retention and a stronger local economy:: “I’m in an industry where 60% of the businesses are closed in the 21st century. If you think about having a relationship with your community and a relationship with your customers, it starts with your relationship to your employees.”
These business owners are not alone. A broader coalition and consensus is emerging. It is time for congress to act.