As expected, proponents of a proposal to increase Rhode Island’s minimum wage have wasted no time in filing legislation at the General Assembly that would boost the rate from $6.15 to $6.75 per hour and call for an annual cost of living increase tied to statistics from the U.S. Department of Labor.
The bill’s main sponsors are Rep. Paul Sherlock, a Warwick Democrat and chairman of the House Finance Committee, and House Majority Leader Gordon Fox, a Providence Democrat. Other sponsors of the legislation include Rep. Frank A. Montanaro, Rep. Thomas C. Slater, and Rep. Paul E. Moura, all Democrats.
Such a proposal could not come at a worse time.
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A new year has brought guarded optimism of late that we may have weathered the worst of the recession, that perhaps the economic tides are turning in our favor. But reality paints a far more somber economic picture.
The holiday season was not an especially strong one for retailers. The state’s unemployment rate continues to inch up. The state itself is facing an estimated $200 million budget shortfall.
Recent reports have been more about companies shedding jobs than adding them. Yes, there have been some positive developments out of our biotech sector. But that has been overshadowed by a recent rash of layoffs, first at K-Mart, which announced plans to close two more Rhode Island stores, and later at Fleet, where another round of layoffs is expected to claim the jobs of as many as 200 in Rhode Island.
Supporting a minimum wage increase is easy. It’s politically correct. It makes for great copy on a campaign brochure. But it is also shortsighted. It is a Band-Aid attempt at fostering economic prosperity.
Would some entry-level workers take home a few more dollars at the end of the week? Yes.
Would more workers find their jobs eliminated as companies reconcile their bottom lines? Yes, again.
And would some companies look elsewhere to expand, or to locate in the first place, because of yet another example that labor forces rule over business at the state legislature?
In proposing the increase, Rep. Sherlock delivers a very basic argument in its favor.
“This measure is long overdue for the hard-working families of Rhode Island,” he said. “It is important that we recognize those that are near the bottom of the economic scale. It is the right thing to do, and now is the time to do it.”
Sherlock points out that a person currently working a 40-hour week and making minimum wage would bring home $246 before taxes. With the increase, the same person would make $270 before taxes.
We think the legislature can do better than that. And at the same time it can send the message that Rhode Island is a good place to do business.
What are really overdue are some progressive ideas from legislators regarding job training and incentives for companies to retrain workers so that they are qualified to move up on the employment ladder, earning higher wages along the way.
This is a time to find creative measures to stimulate our economy and to empower workers to make themselves more marketable.
So if you are concerned about Rhode Island’s business climate, if you think our legislators can work a little bit harder and get a little more creative…If you agree that boosting the minimum wage is an easy way out, let them know. Call your senator and representative.
