Progess 2015 week one

Page 1

ProgressCNY A Mid-Year Report

2015

An Eagle Newspapers publication.

July 15, 2015

Stories from the businesses, industries and issues that impact the Central New York economy

pros and cons of retiring in NY

stay Should I

go? Rachael Teller

or should I

See story on page 3

Minimum wage on the rise By Caleb Harshberger and Jason Gabak By December of this year the minimum wage in New York state will rise to $9 an hour. This will be the latest in a series of efforts to get the minimum wage in the state more inline with the rate of increase in the costs of living and goods in the state. According to a statement by Governor Andrew M. Cuomo on governor. ny.gov, he would like to see that number go even higher. Cuomo proposed an increase from the current $8.75 to $10.50 statewide and $11.50 in New York City by the end of 2016, taking the higher cost of living in New York City into account when making this proposal. According to his statement, more than 1.35 million workers will experience an increase in wages statewide, with the majority of benefits going to adults and women. The direct economic value across the state as a result of these higher wages is estimated to be approximately $3.4 billion. “The minimum wage should allow people who work full-time jobs to support themselves and their families – but that is just not possible today,” Cuomo said. “Our proposal will help hundreds of thousands of New Yorkers better sustain themselves and live with dignity and respect. The state Legislature must pass our proposal this year, because the sweetest success is shared success and we won’t rest until we are all rising together.” Currently set at $8.75 an hour after an increase that became effective in December 2014, this is the outcome of the state legislature’s approval of a bill to raise the minimum wage from $7.25 an hour is 2013 to $9 an hour.

The state’s current rate is ahead of the federal minimum wage of $7.25 per hour. As workers vie for a better wage, business owners grapple with the ramifications an increase could have on their viability. Paul Bentz, owner of the Finger Lakes Pretzel Factory and Bakery with locations in Skaneateles and Seneca Falls, has had to grapple with this in preparing to open his business in Central New York. Bentz said he made the decision to pay his employees more, but as a business owner this is something that he and others have to give serious thought to and what impact it will have on both the business and its employees. “I certainly agree that the minimum wage topic is indeed a complicated and challenging subject,” Bentz said. “I currently pay all my employees more than the New York minimum wage. Keep in mind that the state of New York has a minimum wage that is $1.50 higher than the national minimum wage. It forces business owners to run and operate businesses more efficiently.” Part of the concern over the minimum wage pertains to the ability of people to earn a living. According to livingwage.mit.edu, in Onondaga County, when factoring in annual expenses such as food, housing and clothing, for one adult the annual earnings would have to total $21,345 before taxes, or about $10.27 an hour to make a living wage. For a family of two adults and two children, factoring in the same expenses, this rate would have to be $86,731 before taxes or about $20.85 per hour. Small business owners like Asia Murphy, owner of Eat More Sweets in See minimum wage, page 11

Work Train program gears up By Sarah Hall It’s hard to find good help these days — especially in the manufacturing industry. That’s why programs like CenterState CEO’s Work Train are stepping in to prepare workers for open positions. “Their main concern is talent,” said Dominic Robinson, CenterState CEO’s vice president of community prosperity and Work Train director, of the manufacturing firms in Central New York. He said there are plenty of jobs available, but the people seeking those jobs don’t have the skills necessary to fill them. “I would say that’s one of the biggest barriers to this sector growing. We’re trying to create a talent pipeline to respond to that demand.” Last summer, thanks to funding from the state and other sources, CenterState CEO launched the Work Train initiative as a way to pair certain target industries with job seekers. Work Train builds partnerships with employers, education and training providers See work train, page 9

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Elizabeth Hugh


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