Melinda Choi takes pride in the clean white linen that covers the dining tables at her family’s Ortonville restaurant.
‘Those linens are costing us 7 percent more since the minimum wage increased,? said Choi, of China Fare, 1764 S. Ortonville Road.
‘We pay all our employees more than minimum wage to begin with, so that’s not the problem. But those businesses that supply us, like with the linens, often have workers at minimum wage and they are increasing their prices, so we have to adjust higher.?
Choi and other area employers are bracing to contend with a 44 percent hike in the minimum wage over the next two years, from $5.15 to $6.95 an hour, which went into effect Oct. 1. The second phase of the minimum wage increase, to be implemented in July 2007, will raise the pay to $7.15 per hour and then to $7.40 an hour in July 2008. The first boost in the minimum wage in nine years was passed by both the House and Senate this spring, and Gov. Jennifer Granholm signed the bill into law in March.
While a limited number of area businesses like China Fare employ workers at minimum wage, the trickle down effect from suppliers may be forcing higher prices.
Sonja Pointer, owner of Plumtree Art and Framing, 1780 S. Ortonville Road, has no employees, but says the minimum wage change could force prices higher for her business.
‘Due to the process necessary to manufacture and ship frames and moldings, the cost could be heading up,? said Pointer. ‘Eight companies are related to my business’some of those companies have workers at minimum wage.?
Area lawmakers are split on the raise.
Although several area businesses pay higher than minimum wage, State Representative Jim Marleau, (R-46th District) voted yes on the bill raising the minimum wage.
‘As a small business owner myself, I understand the many regulatory burdens business owners face, and that’s why I continue to work towards creating a more desirable climate for job providers through reducing these burdens. But a stronger minimum wage is about families being able to support themselves, and Michigan families deserve our support,? said Marleau.
In contrast, State Representative David Robertson, (R-51st District) voted no on the bill.
‘I’m concerned it will do harm to the Michigan economy’to the very people it’s supposed to help,? said Robertson.
‘We’re not going to raise our prices right now,? said Steve McGinnis, owner of Big Jake’s Pizza & Shakes, 10230 Hegel Road, Goodrich. ‘It may be inevitable to do so, but it’s the last thing I want to do.?