No support here for $15 minimum wage

3/30/2016

By Jim Poole

Leading Schoharie County business owners don't like Governor Andrew Cuomo's proposed $15 minimum wage.
And although you might expect those who may pay the wage wouldn't support it, these same leaders fear the impact on the economy and on minimum-wage earners themselves.
While the state legislature debates the Governor's proposal, local business people have contacted Albany to express their displeasure.
Scott Ferguson, owner of Upstate Professional Cleaning and president of the Schoharie County Chamber of Commerce, is one of those.
Mr. Ferguson met with two members of Governor Cuomo's cabinet, and his arguments--that small businesses can't afford the hike and may lay off workers to raise others--were echoed by many here.
The response from cabinet members, Mr. Ferguson said, was that people having more money would spend more, lifting the economy.
"They're using different economics than I learned at two colleges," he said.
"We're worried about small business's ability to employ people and even stay in business."
Jessica Loden Kirby of The Apple Barrel in Schoharie launched an email campaign to have business owners contact legislators.
Agreeing with Mr. Ferguson, Ms. Kirby questioned how businesses would deal with employees already making $15-plus. If lower-paid workers get a raise, those earning more probably should, too, Ms. Kirby argued.
And she pointed to the impact on employee morale.
"For those over $15, it devalues the work they're doing," Ms. Kirby said.
Even though the $15 minimum wage wouldn't go into effect until five years from now, Ms. Kirby believes it would still be detrimental.
"The idea of people not making a living wage hasn't been thought through enough," she said.
And there are other issues.
The idea of businesses simply passing the higher costs on to their customers doesn't make sense, according to Chris Guldner, owner of the Bull's Head Inn in Cobleskill.
"The public isn't going to accept a higher price at the cash register just because Governor Cuomo raises the minimum wage," he said.
As others pointed out, businesses can't afford the hike. Restaurant wait staff earn $7.50 an hour plus tips, Mr. Guldner said, adding, "If you double the wage, you've essentially closed the business."
Similar concerns bother Georgia VanDyke, owner of Gobbler's Knob Family Fun Park at Shad Point. If wages jump, she wondered how she could afford supplies.
"If Hershey's raises its price, what's a tub of ice cream going to cost?" asked Ms. VanDyke, who's also the Chamber's executive director. "We're not going to have 16 different flavors."
The impact on employment is a worry for some businesses. Ms. VanDyke said she'd have trouble paying teens $15 for summer work.
"If I can't hire kids. . .well, that's really a problem," she said.
John Radliff, president of the Schoharie County Farm Bureau, agreed.
Hiring young and eager--but unskilled--workers at $15 just isn't feasible, Mr. Radliff said. The payoff for those people now, while the wage is lower, is that they learn skills and a good work ethic.
"Fewer and fewer teens will have the opportunity to work and learn those skills," Mr. Radliff said.
The proposal, he added, "does much damage to young people" because farms and businesses may not be able to hire them.
Of course, there's another side. Marc Weiss, who teaches history and economics at Cobleskill-Richmondville High School, said the difficulty is that the minimum wage is supposed to provide a minimum standard of living. It doesn't now.
He also argued that if people get a raise to $15, they will spend instead of save, thereby helping the economy.
Mr. Weiss pointed out, too, that with people earning more, they're less likely to get public assistance and will ease the tax burden.
But although he supports a higher minimum wage, Mr. Weiss has concerns. He's worried about farmers--especially dairy farmers--who get fixed prices for their goods.
"And it's also harder Upstate, where there's not a lot of economic development," Mr. Weiss said. "We don't have the volume of business up here."
Despite backing the move, Mr. Weiss questioned the Governor's motives.
"I think politicians are using it as a springboard," he said.
"He wants to make good with the liberal left that he's scorned other times. He wants to make his house whole before moving on to the national scene."