Washington Business Fall 2011 | Page 20

360 Is it time to revisit the minimum wage? (continued) minimum wage increase: jobs and hope lost for young workers anthony anton, president and ceo, washington restaurant association don’t starve the economic engine of its gas rep. mike sells, d-everett certainly not providing a wage high enough to support a family. And, the reason we are seeing an adjustment upwards in the minimum wage this year is because the cost of living increased significantly, driven by higher costs in food, gas, and other essentials. the will of the people When I hear talk of “revisiting the minimum wage,” or, to put another way, “going against the will of the people,” it usually involves the idea of a training wage for entry-level employees. The training wage concept won’t do anything for our economy. What it will do is slow our economic recovery by further reducing buying power. Nor, will lowering it for a separate training wage help in competing for good employees. It may, in fact, push greater employee turnover, costing more in the long run. We cannot rid our country of its economic problems by reducing buying power among those at the bottom of the income scale. In fact, we’ll only further strain our society’s safety net by relying on it to support those struggling to put food on the table. 18 association of washington business In spite of all the changes listed above, labor costs in Washington restaurants are the highest in the country at more than 36 percent of your restaurant dollar (the national average is a little less than 33 percent). With another 30 percent going toward food costs and an additional 30 percent being designated to pay for utilities, rent and incidental expenses, there is very little left at the end of the day. I have heard repeatedly from hundreds of operators that the industry is “just no fun anymore,” and “why am I working 80 hours a week and three jobs within my business for so little at the end of day?” Forty-four other states provide reasonable exceptions to their minimum wage, including the recognition of tipped income and the allowance of a teen wage. If you hear the Washington Restaurant Association talk about these issues in Olympia, please understand that it’s about more than just a couple dimes. It could be a serious lifeline to small businesses and their employees.