Should the State Minimum Wage Be Increased?

A packed hearing on Beacon Hill Tuesday dealt with the issue of possibly raising the mimimum wage for commonwealth workers, according to an Associated Press report posted on WBUR.com.

While those in favor of the wage increase believe it to be about fairness and economic justice, the AP reported business groups said raising the minimum wage would make the state less competitive.

Prior to Tuesday, SEIU Local 509 Director of Communications Jason Stephany said in a statement the minimum wage in the state has been at $8 an hour since January 2008.

"Many jobs at large retail and restaurant chains pay so little that even full-time workers must rely on public assistance for the most basic necessities," according to the statement. 

The Senate version of the bill is sponsored by Democrat Marc Pacheco of Taunton and would increase the minimum wage to $11 an hour by 2015, followed by an increase based on inflation with the Comsumer Price Index starting in 2016.

Below is a transcript of testimony submitted yesterday to a small business advocacy group opposing the minimum wage increase by Owner of The Chocolate Truffle and Restaurant and Business Alliance Member Erin Calvo- Bacci:  

My name is Erin Calvo-Bacci and I own and operate the small family Business Bacci Chocolate Design located in Swampscott, MA and its retail arm The Chocolate Truffle located in Reading, MA. Currently we pay our staff more than the minimum wage, but we staff a skeleton crew during the slower months. An increase to the minimum wage will limit us in being able to offer higher rates which will limit us from hiring more people. 

Increasing the minimum wage will not improve our commonwealth’s economy because we know that even if the minimum wage goes to $11.00 hour it will not help a primary financial provider survive. What is going to help them survive is having skill sets that are valued at a higher rate than minimum wage.  As it is, the minimum wage is great for hiring transitional people: parents at home looking to contribute to family earnings on a part time basis, people in between jobs, and students. Minimum wage is a significant issue for small local businesses that are most likely to hire people in their communities. Legislation, whether raising the minimum wage, mandating sick leave, and dictating health care policies, truly impacts what we can offer our communities, and in some cases, forces us out altogether. 

My first job paid the then minimum wage of $3.25 per hour. It was at a local farm stand, which employed students and Mom’s from the community.  Because I was willing to work, my first job got me experience, taught me responsibility, and gave me confidence. Within two years I went on to another business, where I was hired at $6 per hour, $2.75 more than the minimum wage. An increase to the minimum wage will limit those without skill sets and their options for gainful employment. How will that improve our economy? I was fortunate to have an early job experience that taught me how to be a productive worker. I enjoy giving people the same chance to learn about the value of work, but with an increase to the minimum wage where’s the incentive? Please consider the businesses which employ people in the community and the impact an increased minimum wage will have on their cost to hire. The result will be those without gainful employment will have to rely on state assistance. Thank you for your consideration. 

Do you think the state should increase the minimum wage? Leave your thoughts in the comments below.