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
L
Well, where did they think the money would come from?!?
The min wage was still $3.35/hr when I left and came here
o.O
It's your fault then. You shouldn't have left. ;)
All raising the minimum wage would do is to increase our inflation rate.
Rhe Democrats think that raising the minimum wage won't cause business owners to raise their prices. Since the evil business owners have so much money they should share it with those that don't.
Republicans should demand a raise to 50 per hour, plus mandatory health insurance benefits. "For the Children".
That way it will cost 25 bucks for a burger and a soda.
If dems dont cooperate, bash them for being cheap skates and refuse to vote for such a minimal and insulting increase.
Next thing for the Democrats to do....freeze prices.
Then, when businesses start to fail, pass laws forbidding companies to go out of business.
The Democrats don't care. This is just one of what will be a series of shameless attempts to buy more votes.
The "businesses" do not pay this...
...their customers do.
The same goes for Zontini’s Pizza in Martins Ferry and Carlini’s Pizza in Shadyside.
Someone should repeat the question in 6 months.
Until the customers decide that the purchase is no longer worth the cost. Then they stop buying and the workers get laid off.
That kind of irony would just go over their heads in the upcoming debate. Although, I believe most of them know how stupid the minimum wage laws are. It's just that the labor unions own them.
No, the voters do.
The voters simply voted to pay more for the stuff they buy.
Until the customers decide that the purchase is no longer worth the cost. Then they stop buying and the workers get laid off.
The chain reaction continues. The labor union pukes "negotiate" higher wages because there has to be a spread between the top minimum wage and the lowest union wage. When the business fail and people stop buying, and the minimum wage workers are laid off, the democraps blame it all on the evil rich and thus continue to reap the support of the labor unions and the laid off minimum wage "workers" who need to have the evil rich taxed some more to pay them benefits. Of course, the labor union pukes are considered as among the evil rich in the equation so they get to help out with higher tax dollars based on their higher wages. Marxism, its a beautiful thing.
Testify, Brother Johnie, testify!
"I've travelled through this world, by boys,
And I've met a lot of men.
Some will rob you with a six-gun,
Others need only a pen."
Unfortunately, one course requirement that is missing in our public school curriculum is basic economics. So many have no clue.
I see the people of Ohio are learning a basic lesson in economics
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