Journal News (NY)
Editorial, March 6, 2013
Pretend you were advising the state Senate on whether to increase the minimum wage in New York, a leader among the states in income inequality: Would you take your counsel from Costco CEO Craig Jelinek, who knows something about job creation and the bottom line, or would you take your lead from the state Assembly, which just voted to boost the hourly minimum to $9?
It was a trick question: It would be wise to listen to both.
On Tuesday, the Costco executive came out in favor of the federal Fair Minimum Wage Act of 2013, which aims to gradually boost the federal minimum wage to $10.10, tying future increases to inflation. Jelinek is also among a growing list of employers in New York to endorse raising the state’s minimum wage “to at least $8.75.” On Tuesday, the Democratic-controlled Assembly voted 101-44 to raise New York’s $7.25 minimum — it has gone up all of 10 cents since 2009 — to $9, also indexed to inflation. Assembly Speaker Sheldon Silver said it was “appalling” that families have to live on $7.25 an hour — about $15,080 a year.
'Good sense for business'
He doesn’t have to convince decision-makers at Costco, the nation’s largest wholesale club. “At Costco, we know that paying employees good wages makes good sense for business,” Jelinek said in a widely distributed statement.
“We pay a starting hourly wage of $11.50 in all states where we do business, and we are still able to keep our overhead costs low. An important reason for the success of Costco’s business model is the attraction and retention of great employees.”
The New York measure now goes to the Senate, where it faces foot-dragging, excuse-making and nonsense objections from the likes of Republican Leader Dean Skelos. He asked anew Tuesday: “Is it going to be counterproductive to job creation? That’s our concern.” He asks the wrong question in a state where the working poor are falling farther and farther behind. The relevant inquiry: How much longer can the lowest-wage earners go without a raise? ...
A wide range of business owners and groups, representing small and large employers both, signed pledges backing the minimum wage increase, including Eileen Fisher, the Greater New York Chamber of Commerce, ReThink Local (Hudson Valley) and ABC Home. Jelinek was hardly “going rogue” with his supporting remarks. Costco founder Jim Sinegal backed a similar effort in 2007, telling The Washington Post: “The more people make, the better lives they’re going to have and the better consumers they’re going to be. It’s going to provide better jobs and better wages.”
The advice was worth listening to then; it’s no less relevant in 2013. Policymakers in Albany and Washington should follow it.
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