By Brenda Showalter, The Republic
bshowalter@therepublic.com
Indiana's Chamber of Commerce is opposed to increasing the minimum wage, saying a free market better dictates wages.
Officials also believe the added costs for businesses would force them to decrease costs elsewhere or raise costs for their customers. "We don't think government should interfere with private enterprise," said George Raymond, vice president of human resources and labor relations for the state Chamber of Commerce.
He also sees a variety of negative effects that a mandated increase in minimum wage would cause. "When you look at studies, what happens when you increase the minimum wage is you cut some people out of the job market," he said.
Raymond suggests a better alternative would be training workers so they have skills to qualify for higher-wage jobs.
"Giving them a raise is kind of a feel-good measure," he said, "It's not really helping."
From the employers' standpoint, Raymond added, paying more for employees offers no added benefits.
"You're not getting any more productivity out of these people. They have no increase in skill level," he said.
Some believe increasing the wages for the lowest-paid workers would cause a ripple effect, forcing employers to also bump wages for those making above minimum wage. "If they can't pass the cost on to consumers, they might have to lay off people," he said.
Local views
The local chamber has not taken an official stance on the minimum-wage issue. Jack Hess, president of the Columbus Area Chamber of Commerce, said increasing the minimum wage is not among the top issues local businesses want addressed by lawmakers. "I believe in the scope of things, it is not nearly of the importance of other issues," Hess said. More pressing matters include addressing immigration and health-care issues, he said. In Columbus, the market and competition for workers have driven wages higher than the $5.15 per hour minimum wage.
Even in fast-food and retail businesses, few jobs pay minimum wage.
"For competitive reasons, it's usually around $6.50," Hess said, adding that unskilled factory workers typically make about $10 per hour and semi-skilled factory workers $12 to $14.
Hess believes an increase in the minimum wage would have the biggest impact on businesses that pay closest to minimum wage and have a tighter profit margin.
According to information from the Indiana Business Research Center, 10 percent of Bartholomew County workers are employed in retail trade jobs and 6 percent in accommodations and food-service positions.
A survey of starting hourly wages of Bartholomew County employers included $8.83 for unskilled production workers, $9.25 for receptionists and $10.06 for tellers and cashiers.
Hess said a change in minimum wage likely would affect a small percentage of workers and businesses.