Ohio Feeling Effects of Minimum Wage Increase (Rest of US not far behind)

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.

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 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

I do not really have links to show this. I am speaking from 40 plus years in the work-a-day world, 25 in 'progressively responsible management positions."

My first experience was with an ambulance service in 1970. They started everyone at minimum wage. I think it was $1.25 an hour at the time. After training you got a raise to $1.30. If you were a driver you made #1.50 an hour. If you became both a driver and a field training person you made $1.75. These numbers are approximate. After 30 some odd years I've forgotten the actual amounts. When the minimum wage went to $1.35 an hour every employee along the line got a $.10 an hour raise. Terrible things happen to payroll costs when you must staff a business 24-7-365. I forget the exact amount, but each nickel per hour cost the company thousands of dollars a year.

I have a friend who was the CFO of the ambulance company and I will ask him about the specifics. It got much worse when the private company was taken over by the county. As a private company they were able to require employees to be on the job 24 hours, but pay them for only 16 hours, the remaining 8 hours being "sleep time". During sleep time they had to pay you only for the hours you actually were on a call. The private company had a schedule of 24 hours on, 24 off. Every morning of your life you were either going to, or getting off, work. The county couldn't do that and had to pay for every hour on the job and had a 24-48 schedule. One day on, two days off.

Let me check with this guy and see what he can allow for us. He's really good when it comes to payroll numbers. He used to sit in the union negotiations and do the math in his head!

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