Voice of Business Newsletter N l tt March/April 2016
Employers Weigh in on Proposed $15 Minimum Wage
G
reater Rochester Chamber of Commerce hosted an employer forum to hear from economists and employers and to share results of a survey and member feedback on a proposed $15 an hour minimum wage in New York State. After reviewing results of the survey, Rochester Chamber concluded that it cannot support such a state mandate on employers.
a mandated statewide $15 minimum wage would be a counterproductive policy with a negative impact. It will disrupt labor markets, reduce job creation, drive up prices, and chill the business climate.”
TruForm Manufacturing President Tyrone Reaves told those at the forum that every business would love to pay a livable wage, but a mandated $15 an hour minimum wage is not the way to get there. Reaves said, “The answer is we have to get people from no skills to low skills to middle skills. Training is really the answer. You phase that training up. If a person is someone who has a skill set that is worth nine dollars an hour, how can you pay them $15? Business just doesn’t work that way. I would love to have our legislators go to our customers and say, ‘Can you please let Tyrone and TruForm charge a little more so he can pay a higher wage?’ It doesn’t work that way. It never will. I think the fundamental premise of business is you can only pay based on the value of what something is worth.”
Rochester Chamber Vice President of Public Policy and Advocacy Chris Wiest said, “Nearly half of those we surveyed said they will be forced to change their hiring philosophies and practices as a result. One third said they don’t expect a great impact. It’s a complicated issue. Clearly there is a lot of concern by employers on how they’re going to afford to pay a $15 minimum wage.” The forum featured members of the local state legislative delegation, Rochester Chamber member company representatives, and the panel of economists and employers who shared personal stories on how an increased minimum wage will impact employers, employees, and their customers. Empire Center for Public Policy President E.J. McMahon started off the forum by telling legislators and employers that Empire Center research projects the loss of 200,000 jobs in New York should a $15 minimum wage go into effect. McMahon said, “On balance,
in terms of lost jobs, lost opportunities, particularly for people who come in at the low end of the skill spectrum, are really significant. Not only that, but it raises costs, often for the same group of people that you’re trying to benefit. It’s really a mixed message.”
Center for Governmental Research Chief Economist Dr. Kent Gardner called a $15 minimum wage “a bridge too far.” Gardner said, “Most, I think, would agree that a modest increase in the minimum wage is not something that’s catastrophic for the economy, but there’s a point at which the minimum wage increase becomes too high. The consequences
Rewarding Solutions President Betty Richardson also warned about the consequences of wage compression. Richardson said, “Most organizations have pay systems that provide higher pay for higher levels of skills, experience, and responsibility. This increase of the entry rate triggers the (Continued on p. 3)
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