Op-Ed By Barbara Roberts
Grand Junction Daily Sentinel, Oct 25, 2016
I’ve heard a lot of Chicken Little talk lately.
With the election around the corner, more and more people are talking about Amendment 70—the ballot initiative that would gradually raise the state’s minimum wage to $12 by 2020. I’ve heard some crazy things, like an increased minimum wage will result in $18 hamburgers and $200 haircuts.
As a business owner, that kind of “sky is falling” rhetoric insults my common sense. Instead, I dig out my trusty calculator and run the numbers. Our entry pay is above the current $8.31 minimum wage because we’ve found paying better wages helps us attract and retain good employees. The gradual increase to $12 an hour by 2020 would mean a gradual increase to our payroll of 5 percent. That’s not insignificant, but certainly doable. And no, we won’t have to charge $200 for a haircut to do it.
As the minimum wage goes up, my employees won’t be the only ones with some extra cash in their pocket. A statewide raise to the minimum wage will give many Coloradans more buying power. Yes, that helps workers trying to survive on the minimum wage. It also helps businesses across our state, including mine. That increase in consumer spending power will offset the increase in labor costs.
I’m in the beauty business. We take pride in our craft helping our customers look their best. But when money’s tight, guess what one of the first things to go is? Raising the minimum wage will put more money in workers, i.e. customers, pockets, which they’ll be much more willing to spend on things like haircuts, facials, manicures and the like; services that aren’t necessities, but sure are nice-to-haves.
I certainly understand business owners being nervous about an increase. Anytime anything goes up – labor, equipment, products, utilities – it can be worrisome. But Amendment 70 gives business owners four years to make adjustments.
What’s more, when employees are paid better wages, they perform better at work. Instead of needing two jobs to make ends meet, they can have one and give 100 percent when they’re at work. I know from experience that that does wonders for a bottom line. My employees help me find efficiencies and improvements that make good business sense.
And because I make it a point to pay more than the current minimum wage and value my employees they’re happier at work and provide better customer service. The kind of great customer service that not only keeps people coming back, but gives them a reason to tell their friends about us.
Raising the hourly minimum to a reasonable base wage of $12 by 2020, and adjusting it to the cost of living after that, will strengthen Colorado’s economy. It will take pressure off the social safety net caused by inadequate wages. Today’s $8.31 minimum wage comes to just a little more than $17,000 a year for full-time workers. It’s a disservice to workers and our state.
Too many people working full time can’t make ends meet, and have to rely on government assistance because they’re being paid wages that don’t even come close to covering the basics. Too many people working full time have to turn to food banks like the one I volunteer at.
Colorado is better than that. I’m happy to be one of more than 200 business people across the state who think so and have already signed Colorado Business for a Fair Minimum Wage’s statement supporting Amendment 70.
I’m tired of the bombastic rhetoric I’ve been hearing about raising Colorado’s minimum wage. The economy will not crash, the sky will not fall. The simple truth is it will be good for our businesses, our communities and our state.
BARBARA ROBERTS
Co-owner of Five 60 Salon
Grand Junction
Copyright 2016 Barbara Roberts