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
That's way too harsh, the masses would never fall for it. It has to be something like "involuntary servitude"
While the inflationary effects of a wage floor are significant, an equally-big issue IMHO is that the only way such laws raise anybody's wages is by removing from the marketplace those whose labor isn't worth more. The only way for a minimum wage not to put anyone out of work is for it to be so low that it has basically no effect whatsoever.
I saw that yesterday afternoon. Neil doesn't put up with a lot of sh*t from clowns like Frank.
By the way; Did anyone notice the stretch marks around Barney's mouth?
The Fed will maintain or raise interest rates to battle the increased cost-push inflation. That rate cut we were hoping for next year...well, you can forget it.
Why pay any wages at all..if you can get away with it.
Doing a 'Morecambe Bay' its known as in the 'trade'.
"In other words, the Democrats are a bunch of complete turd-brained idiots." They have proven this over and over during the last 180 years. And the American voter has proven with equal frequency that he doesn't care how stupid these idiots are and votes for them anyway.
Two reasons
!. It's not an act of government and
2. If you took the CEO of Exxon Mobil's retirement package and applied it to the cost of gas, we could all pay a penny per gallon less for a day. In other words it doesn't matter.
Now with all that said, there was plenty of bitching about Nardelli of Home Depot because he did nothing to earn his as opposed to successful CEOs who create billions in wealth for shareholders.
Any bets every union will go to the bargaining table and say their members need more money because the minimum wage went up."" As fas as I have ever observed, EVERY union contract has clauses in it giving them raises when the minimum wage increases. This is in addition to COLA raises.
A guy already making $25/hr never says a peep when his wage soes up another $1.70 or whatever due to these changes at state levels.
As a Bookkeeper, I would expect to have my client ask me to calculate how much more money it will cost the company for the mandatory raise in wages, and then the appropriate number of employees would be cut back in total or in some of their hours. I would also be recommending a reduction of health and other benefits. A nice sit down Christmas party and dinner would rapidly become a late afternoon pot-luck. The employees who vote also need to see up close and personal how these kinds of legislation hurt them up close and personal. Childcare, free gym memberships, free parking and other benefits I would recommend be gone. Generous vacations, sick pay, anything I could cut I would. If I needed to, I would recommend that the owner restructure the company, perhaps even creating a new partner, so that they can completely restructure the benefits.
It is the most basic kind of stupid to believe this kind of action will be "absorbed" and have no impact on anyone except the EVVVIIIL business owner.
Fed rates for interest are going to stay high as long as this type of inflation keeps being put into the laws. That alone keeps so many people out of the home ownership ranks.
I didn't need a lesson, but apparently I'm in the minority that voted no on this.
The people of this state are beyond help. It's turning into another Massachusetts.
*Ping!* to all the former Blackwell Ping Listers.
I agree to a point, BUT:
It's NOT a LAW that CEO's make what they do.
It also punishes teenagers by making it harder for them to find that first job.
A guy can't support his family of four and make a decent career on $7.15/hour. The minimum wage needs to be $35/hour so a guy aspiring to be a busboy can live comfortably.
My 16 year old son was so excited when he learned the minimum wage increase meant more cash in his pocket. He works at Subway. I explained to him that it will have negative ramifications, as well. The next week he reported that all the sandwiches cost significantly more at Subway and he was noticing the increase in other eateries as well. He remarked that although he made more, he also had to spend more.
Sometimes you just have to let kids see for themselves.
I don't know what's wrong with people here.
An acquaintence of mine quipped "I'm tired of not making any money so I voted for it."
Well, this guy makes about $11 an hour. Granted, 11 buck and hour isn't jack-sh*t for money either, but he DOESN'T MAKE MINIMUM WAGE and is also non-union, so would he even get a raise from this? Probably not. People need to be educated.
Thanks for the ping!
No one is talking about the additonal $9 billion cost to tax payers (Urban Institute figures) that a $7.25/hr minimum wage increase will bring. (EITC and Child Tax credit alone!) (that's just for under 3% of the population that make MW.)
What I am worried about right now is the Feds. One of the proposals to 'save Social Security' is to increase the employers' percentage.
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.Hello!
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