Steven Wallace

Steven Wallace

PRESIDENT’S MESSAGE: There is a big debate broiling in Maine. I hear it being talked about in pubs, grocery stores, and at the water cooler in offices all over. The topic? Minimum wage, and, more specifically, should it be increased as proposed by the Maine Legislature and LD 611? First, a little background on minimum wage, and then on to pending legislation.

According to Wikipedia, an online resource, the first attempt at establishing a national minimum wage came in 1933, when a $0.25 per hour standard was set as part of the National Industrial Recovery Act. However, in the 1935 court case Schechter Poultry Corp. v. United States, the United States Supreme Court declared the act unconstitutional, and the minimum wage was abolished. Such laws, said the court, were unconstitutional for interfering with the ability of employers to freely negotiate appropriate wage contracts with employees.

 

 

The minimum wage was re-established in the United States in 1938 (pursuant to the Fair Labor Standards Act), once again at $0.25 per hour ($4.10 in 2012 dollars). The minimum wage had its highest purchasing value ever in 1968, when it was $1.60 per hour ($10.64 in 2012 dollars). From January 1981 to April 1990, the minimum wage was frozen at $3.35 per hour, then a record-setting wage freeze. From Sept. 1, 1997 through July 23, 2007, the federal minimum wage remained constant at $5.15 per hour, breaking the old record. Since it was last re-set on July 24, 2009, the federal minimum wage in the United States has been $7.25 per hour.

The federal law exempts certain types of labor: Employers may pay tipped labor a minimum of $2.13 per hour, as long as the hourly wage plus tipped income result in a minimum of $7.25 per hour.

Several states, including Maine, have minimum wage laws that are higher than the federal mandate. Currently, Maine’s current minimum wage is $7.50 per hour.

Fast forward to today and minimum wage is again on the front burner in Augusta. LD 611, “An Act to Adjust Maine’s Minimum Wage Annually Based on Cost of Living Changes,” seeks to raise Maine’s $7.50 minimum to $9 per hour in three increments ending July 1, 2016. The minimum after that would be adjusted annually for inflation.

I am one of those folks who wrestles with the minimum wage debate. I get the reason for cost-of-living raises. We all know retirees and folks on fixed incomes who are negatively affected when they don’t get cost of living raises. The cost of everything from milk to gasoline is going up on an annual basis, so why shouldn’t Social Security and other benefits be indexed to current cost of living standards? Or this is one opinion, at least.

What I fight with is minimum wage being dictated on jobs that are and were always meant to be at the bottom of the wage scale. Minimum wage is not supposed to be a living wage, and folks are not meant to spend careers in minimum wage jobs. Minimum wage jobs are meant to be transitional jobs that teach workers how to navigate the work force ladder. And this is another opinion.

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So how does one reconcile this debate?

Well, it starts by smart people sitting down and hearing both sides of the issue. That is why it is my pleasure to tell you about our upcoming Chamber Regional Luncheon on May 15, from 11:30 a.m. to 1 p.m., at the Inn At Brunswick Station, 4 Noble St., Brunswick. I have invited subject matter experts from the left and right — Maine Center for Economic Policy and Maine Heritage Policy Center, respectively — to talk about the minimum wage/living wage debate. The cost is $18 for members and $25 for non-members (includes lunch). Seating for this event is capped at 100 members/guests. You can register online at www.midcoastmaine.com.

Our goal for this event is to educate you, allow for debate, and at the end of the day, let you decide your opinion. So come on out to this great event; I guarantee you will get your mind expanded on this very important issue.

UPCOMING EVENTS: “Read ’em and Smile — Making Sense of Financial Statements” Part 3 of Business Success Seminars is April 18, 6:30 to to 9 p.m., in the Village Room, Priority Business Center, 2 Main St., Topsham. Maine Small Business Development Center (SBDC) Certified Master Business Counselor Bradshaw Swanson will explain how financial reports are generated, what they mean and how they can be used. Sponsored by SBDC, Southern Midcoast Maine Chamber and Brunswick Downtown Association. Fee and registration required.

April’s Chamber After Hours is the best networking event in the region. The April 24 event will be hosted by Wild Duck Pub at Highland Green, Topsham, from 5 to 7 p.m. Refreshments included. Meet new members. Catch up on what’s happening in our 16-town region. Chamber members, their employees and guests are invited and it is free. Please register for this event no later than Tuesday, April 23 in order to ensure maximum enjoyment and for proper planning by our hosts.

“Blogging for Business: Answering the 5 Ws” is the second in a series for growing your business through social media and online marketing. Presenter is Jennifer Barbour, a professional copywriter, blogger and new media consultant. The event is May 1 , 11:30 a.m. to 1 p.m., at the Village Room, Priority Business Center, 2 Main St., Topsham.

Please go to the chamber’s website (www.midcoastmaine.com), scrolling calendar to register for all of these events.

MEMBERS IN THE NEWS: To discover more about chamber members, go to www.midcoastmaine.com or download MyChamberApp for use on your mobile phone or tablet.

The chamber proudly serves 740 businesses and organizations in the following communities: Arrowsic, Bath, Bowdoin, Bowdoinham, Brunswick, Dresden, Edgecomb, Georgetown, Harpswell, Phippsburg, Richmond, Topsham, West Bath, Westport Island, Wiscasset and Woolwich.


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