Business

Some Missoula employers welcome minimum wage increase

2014-01-04T18:00:00Z 2014-01-06T08:10:36Z Some Missoula employers welcome minimum wage increase missoulian.com

Despite the recent minimum wage increase raising the cost of doing business, some Missoula employers welcomed the 10 cents an hour raise for their workers.

“As a general rule, I’m very supportive of the increase,” said Dave Beaton, who owns four Taco del Sol locations in Missoula.

More than half of his roughly 50 employees will receive the boost, Beaton said, adding that, if anything, he would like to see minimum wage raised even more at a federal level.

“If the whole market will adjust, it helps because then you’re not left alone to be competitive and pay a higher wage,” he said.

The 10-cent bump went into effect Jan. 1 and brings Montana’s minimum wage up to $7.90 an hour, which is above the federal mandate of $7.25 an hour but below the highest paying state of Washington, where workers make at least $9.19.

This year’s increase amounts to an extra $192 per year for full-time Montana workers making minimum wage. Last year’s increase of 15 cents an hour tallied out at $300 more a year.

Montana law requires an annual minimum wage increase based on the U.S. City Average Consumer Price Index from August to August, said Casey Kyler-West, communications director for the state Department of Labor and Industry.

“One of the reasons it’s in place is so that people have at least a livable wage,” Kyler-West said.

Increases in pay also mean people have more discretionary income to spend in their communities.

“Really, what it gives them is more spending power,” she said.

The majority of Montana employers already pay more than the required base, Kyler-West said.

Based on 2012 numbers, 2.9 percent of Montana’s workforce made minimum wage, with the bulk of those 12,300 people employed as waitresses and waiters, she said.

Impacts from the current increase will be varied and it’s difficult to anticipate what effects will be in terms of hiring, Kyler-West said.

“Some businesses, depending on how much this impacts their overhead, they may have to increase the cost of their goods to make up that difference,” she said.

Beaton anticipates some adjustments will need to be made to absorb the increase at his Taco del Sols and said changes will be made accordingly when it becomes apparent which areas are impacted.

Most customers understand that businesses regularly face rising costs on several fronts, he said.

Any changes likely would come in pricing.

“I think most people have to adjust in the pricing somewhere in their products, but it’s not significant at all,” Beaton said.

Like Beaton, the Missoula Family YMCA considers the increase as a positive.

“Basically, we are very much in support of the minimum wage,” said Debbie Mitchell, the Y’s human resource director.

The increase melds nicely with the organization’s commitment to supporting low-income and working poor people, Mitchell said.

In anticipation of an increase, the YMCA budgeted ahead of time for a raise for the small number of employees affected, she said. “And we were almost exactly on the dot.”

Other changes, such as Affordable Care Act regulations, will have more of an impact on the budget than the minimum wage increase, Mitchell said.

“I think in all those cases we look at where we can raise costs if we have to,” she said, adding that the organization’s annual fundraising campaign helps offset rising prices.

For more information about how the increase stacks up, go to ourfactsyourfuture.org.

Reporter Alice Miller can be reached at 523-5251 or at alice.miller@missoulian.com.

Copyright 2015 missoulian.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

(9) Comments

  1. Bob
    Report Abuse
    Bob - January 05, 2014 2:50 pm
    Those on this blog opposed to the minimum wage must be big believers in "trickle down". ...yea, that works.
  2. NoturAverageBear
    Report Abuse
    NoturAverageBear - January 05, 2014 1:12 pm
    'Who Stole the American Dream':

    http://hedricksmith.com/books/who-stole-the-american-dream/
    http://hedricksmith.com/table-of-contents/
    http://www.washingtonpost.com/opinions/who-stole-the-american-dream-by-hedrick-smith/2012/10/27/37f115da-f081-11e1-adc6-87dfa8eff430_story.html
    http://www.youtube.com/watch?v=4J5WReyQlT0
    http://www.imdb.com/title/tt1966464/


  3. Robert_Boxer
    Report Abuse
    Robert_Boxer - January 05, 2014 11:48 am
    I recently wrote an article about how an increase in the minimum wage rate increases unemployment. You can read it here: http://wp.me/p3N9zD-4e
  4. Kojack
    Report Abuse
    Kojack - January 05, 2014 10:37 am
    Minimum raise increases kill middle class. Do you think middle class will get a raise if the lowest end employee does? Heck no so middle class ends up moving closer to poverty level due to higher prices to offset minimum raise increases. This is america and the last time I checked no one is forced to work at minimum wage. If you dont like your wages then do a good job and look for a better job. This type of work was never intended to become a career. Stop trying to mandate away every problem, it only creates more.
  5. Montana 1950
    Report Abuse
    Montana 1950 - January 05, 2014 10:00 am
    In the past, very few people had college degrees. It wasn't because they didn't want to get one. They were unaffordable. Maybe student loans were not available as they are today. Most were trained on the job or went to vocational technical schools to learn a good trade. All of a sudden, there was a big push for college education. If a high school student wasn't going to college, they were looked at as if they would be unsuccessful in life. Now we have people who are in debt for tens of thousands of dollars in student loans, and they don't have jobs in what they majored in. I wish I knew what the answer was to make things better.
  6. ynot
    Report Abuse
    ynot - January 04, 2014 11:01 pm
    It's not a "support a family" wage, it's a "livable" wage. And sadly, it's not for moms or students who want extra ending money anymore. Single folks don't typically qualify for any sort of government assistance, so they HAVE to make do on a livable wage, which I agree, is not livable. People from the 50's have to accept that good, we'll-paying jobs are far more limited now than they used to be, even for people with a bachelors degree.
  7. montanamuralist
    Report Abuse
    montanamuralist - January 04, 2014 9:12 pm
    I wonder how employers would feel if they actually paid enough for people to live on. I echo Jacob's comment...$ 7.90 an hour is not even close to a living wage.
  8. Montana 1950
    Report Abuse
    Montana 1950 - January 04, 2014 9:00 pm
    As far back as I can remember, minimum wage jobs were always mom jobs for when the children were in school. They were student jobs for the summer, weekends, or after school. They never paid a liveable wage. I'm not saying that it shouldn't be raised but you can't expect to work at these jobs and support a family.
  9. Jacob
    Report Abuse
    Jacob - January 04, 2014 7:02 pm
    7.90 per hour is not even close to a livable wage....
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