Wednesday, March 09, 2011
Chamber Opposes Minimum Wage Increase
The House Economic Matters Committee heard legislation yesterday to increase Maryland’s minimum wage from $7.25 per hour to $8.25 in 2011, $9 in 2012 and $9.75 in 2013. It would also index the minimum wage to increase according to the consumer price index, beginning in 2014.
The Maryland Chamber opposes this bill, HB 988. Many small business owners in Maryland are struggling to remain competitive, especially in this tough economic climate. “Increasing their costs, even in a minimal fashion, can mean the difference between surviving or not.” Maryland Chamber’s Vice President of Government Affairs, Allyson Black said. “The proposed wage increase is far from minimal for an employer in survival mode.” Employers will be forced to cut back on staffing due to the increased costs, many employees may have their hours reduced and others may lose their jobs.
Member of the Maryland Chamber and a Burger King franchisee, Eric Oppenheim of Harvest Foods of Maryland, said this is an issue that could hurt his company’s prospects of growing and creating new jobs in Maryland. “Sales have been declining over the past two years due to the economic conditions and recession,” Oppenheim said. “We have been forced to reduce hours and put a freeze on hiring employees. Raising the minimum wage causes businesses, especially small business, to raise the price they charge for goods and services, cut back on the quality and quantity of services provided and eliminate jobs.”
Click here to view the Chamber’s full position statement. For more information on this bill, contact Allyson Black at .(JavaScript must be enabled to view this email address).
