If the minimum wage rose in the forest, would it still make a difference if no one was aware of it? Apparently yes.
But that doesn’t mean many people are aware that the minimum wage will increase from $6.50 to $6.65 an hour on Tuesday.
“It will?” asked Mark Kovac, co-owner of Kovac’s Affiliated Super Foods, adding that all of his workers are paid above that new rate anyway.
L.B. Newey, owner of Sack and Save grocery store, said he wasn’t aware of the rate increase either. But all but one of his 25 workers, who is a part-timer, makes more than the new amount.
“Everybody is making about $7 an hour or more; that one is making $6.50,” Mr. Newey said.
Maybe the reason the new minimum wage increase is sneaking up on everyone is the fact that it was just a year ago that the rate jumped from $5.15 to $6.50 an hour. This new rate only increases the minimum wage by 15 cents and was put in place to keep up with the cost of living.
“The first one was a big jump that had a pretty big impact,” Mr. Newey said.
While most welcome the increase, opinions about its impact are varied.
Darrel Murphy, a manager for Speedy’s Convenience Stores, said he makes more than the new minimum wage rate increase. He said he thinks the increase will help some people initially, but as prices go up, eventually it will have little or no effect.
“Give it a year or so, and it won’t make any difference,” he said. Creating jobs would help more than raising the minimum wage, he added.
“Get more jobs, then more money is poured into the community, and the wages go up because of that, not because of some artificially inflated federal mandate,” Mr. Murphy said.
Ted Allison, president and chief executive officer of the St. Joseph Area Chamber of Commerce, said while the increase definitely will benefit some workers, it may not be a help to small businesses.
“They may be forced to let somebody go in order to pay the higher wage to others in their business,” he said. “That’s the unintended consequence that we hope won’t occur, but sometimes it does.”
Is it true that many union wages are tied to the minimum wage rate? I thought that negotiations in some unions mandate that a raise in the minimum wage means an automatic wage increase for them? Does anyone know if this is correct?