Posted on 01/05/2007 2:05:18 AM PST by leadpenny
ST. CLAIRSVILLE — Ohio’s new minimum wage is just five days old but already, some businesses have begun raising their prices to pay for it.
On Monday, the state’s minimum wage rose $1.70 from the national level of $5.15 an hour to $6.85. Annual cost-of-living increases will follow. Voters approved the change via a constitutional amendment in the November general election.
About 600,000 of Ohio’s 5.5 million workers got raises Jan. 1.
Several Belmont County businesses said they have cut back on their work force or at least workers’ hours.
Jerry Gasber of Gasber’s Fine Day Restaurant, located on U.S. 40 west of St. Clairsville, said he already has cut back one person on each shift. In addition, he’s had to raise prices.
“It’s very inflationary,” he said of the increase.
It comes at a time when Gasber’s business is being affected by a gasoline surtax on food deliveries and a tax on sanitation. He noted sanitation rates have increased four-fold over the past five years.
At Sonny Boy’s on National Road in Bridgeport, there haven’t been any staff cuts. However, the restaurant has raised its prices by about 50 cents per meal, said Tracy Leiffer, spokeswoman for the business.
Mike Palicka, manager of Garfield’s restaurant in the Ohio Valley Mall in St. Clairsville, said that business hasn’t raised prices yet, “but I’m sure it’s going to come.”
The business, he said, will have to cut back on hours for its employees. However, he doesn’t think it will be a problem. The wage increase comes at a time when the holiday rush is over and many employees are returning to school, he said.
At the Subway store in Martins Ferry prices have gone up by 20 cents a sandwich, said manager Loren Beckett. However, there have been no cuts in staffing, she said.
But the increase seems to have had no effect on the Convenient Food Mart in Flushing, according to manager Linda Porter.
The same goes for Zontini’s Pizza in Martins Ferry and Carlini’s Pizza in Shadyside.
When asked if he’d seen any changes, Zontini’s manager John Canter said “not really.”
According to published reports, U.S. House Speaker Nancy Pelosi, D-Calif., has indicated a federal minimum wage increase will be part of her first 100-hour agenda. The measure would call for a raise to $7.15 an hour, but it is not expected to include adjustments for inflation.
Meanwhile, Michigan’s minimum wage will go from $6.95 to $7.15 on July 1 and to $7.40 a year later.
Pennsylvania’s minimum wage rose to $6.25 an hour on Monday and will increase to $7.15 on July 1. The increase was approved by the state’s General Assembly and was signed by Gov. Ed Rendell in July
Me either, but that isn't what the minimum wage is about.
Been reading "Atlas Shrugged"?
Minimum wage has little effect on most industries / businesses.
Want to hear a shocker that WILL have an effect?
UI company (power company here in CT) is making phone calls to local businesses letting them know their electric rates will go up 80% in the next 9 months.
ST. CLAIRSVILLE?
seriously, hardly an example of the true condition of Ohio........
Yep--when a med soda from Mcd's went to $1.50--I just bought the hamburger. Now I won't be buying that either.
This is forseen and therefore intended by the idiots who interfere with free market decisions.
To stop this bullshit, they should make a constitutional amendment that raises the minimum wage according to inflation and leave it at that. Won't happen with the Screecher of the House now in charge.
Good point, Wolfie. And to the others, I notice that you are disturbed because the minimum wage is set by LAW. However, I don't hear you complaining about the laws that enable corporations to exist. Not very consistent, are you?
As for the effect that ridiculously high compensation costs for executives has on consumer prices, it may only be a penny for one CEO, but those pennies add up.
That's comparing apples to oranges. Corporations have existed since before the Constitution was ratified. And allowing them to exist is NOT comparable to mandating a certain wage.
What are you proposing? We pass ANOTHER wage law to cap corporate salaries?
Hey xzins, does this mean you get a pay raise?
I voted against it to.
I deliver Pizzas in addition to my regular job. We are tipped so we don't get as much of a raise. If we had, our commission on deliveries would have gone down to compensate. But since the wages for the kitchen staff go up, our prices will increase I'm sure.
True story:
I was at a nearby grocery (independent) the end of last month speaking to the manager in charge of the deli/bakery. I was told that all the employees were in a sour mood because the boss had ordered about a 25% hour cut across the board for every section. For this manager, that meant scheduling 30 fewer hours per week, about one day less for each worker.
Why?
The minimum wage increase. The owner was cutting his expenses. As an independent, their enforced RAISE came directly out of store profits which are HIS income.
A minimum wage increase is an anti-independent business measure. It costs workers hours and dollars.
Ohhh....the manager was told to increase the efficiency of this section so that there would be no change in output. In short, the owner was taking it as an opportunity to drive out waste and increase efficiency.
Yep, the raises are automatically tied to inflation and most people believe the CPI overestimates true inflation. The Ohio economy is doomed.
And they really are going to learn those lessons when many get their pink slips.
That means on Sunday he can say, just before the offering, "the minimum tithes and gifts will be annually adjusted to the proportional increase of the minimum wage increase to cover the additional staff salaries" or he can slip it intoo the worship folder.
In many peoples minds, especially those in non or low skilled but better paying jobs, they are just a layoff away from min wage. That's why they support it.
They're too stupid/uneducated to realize that these laws make that layoff MORE likely.
I'm speechless.
Where is the meeting in Mentor?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.