In a Buffalo News article, David Robinson, Tom Precious and Emma Sapong examine employees’ and employers’ views on the proposed minimum wage hike. Businesses contend that the Speaker’s proposal would result in less jobs and higher payroll costs:
“Business groups denounced the Silver plan, saying it would cost the state jobs by driving up payroll costs at a time when the economy is struggling.
‘We think it would be a sure-fire way to stifle job creation as New York struggles to emerge from the recession,’ said James Calvin, president of the New York Association of Convenience Stores.
‘When you drive up the cost of an entry-level position, it makes it harder to justify that position,’ Calvin said. In addition, a higher minimum wage would have a ripple effect that would push up the hourly pay of other workers at the bottom end of the pay scale, further adding to payroll costs, he said.
‘That would be devastating,’ said Michael F. Newman, the executive vice president of Noco Energy, which oversees the Noco Express Shops chain. He said a higher minimum wage would mean fewer part-time positions and less flexibility for both employers and the workers who fill those jobs.
‘It misses the whole point about what that introductory wage is meant for,’ said Newman, who estimated that about 40 percent of the workers at Noco Express Shops earn minimum wage. ‘These are part-time people who are looking for extra work.’
A small-business advocacy group, the National Federation of Independent Business, had a similar reaction. “The proposal is based on good intentions, but it’s going to have a very damaging effect on the people whom its advocates want to help,” said Mike Durant, the group’s state director.
‘The way to improve our state’s economy and the lives of all New Yorkers is to create more private-sector jobs,’ said Heather Briccetti, president and chief executive officer of the Business Council of New York State.
‘Raising the minimum wage would only hurt New York’s small businesses, farms and not-for-profits that are struggling to make their current payrolls, and reduce job opportunities in this difficult economy,’ she said.”
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