Raising the minimum wage is a hot topic at the state and federal levels.

I agree: Wages are way too low for the cost of survival today. I work two jobs, as do many others today. I like my toys, and if I want extras, I work for them.

Let’s step back and play devil’s advocate. Wages for full-time jobs start off around $10 to $12 per hour, with no benefits. The pay for part-time jobs starts at around $8 to $9 per hour, with no benefits. In both cases, hours and employees’ availability are solely based on profit.

As a part-time worker I joked with my boss, “We’ll be getting a big raise soon.” The response was: “Yup, you will, but you won’t make any more money. The amount of money for payroll, per person, per week is X. The more people are paid per hour, the fewer hours I have available. I’ll have to cut hours and cover the open hours with salaried personnel.”

In southern Maine, most start off around $8 an hour, with a minute shift differential and no benefits. Employee hours available are based on profit.

If the wage for all hourly employees rises by $4, there are only two options: Have salaried employees work the hours, or raise the price of products sold at the facility. Salaried personnel will be required to work extra hours a week to stabilize the profit margin.

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A higher minimum wage will definitely help employees. Or will it?

The reality is, people today work two or more part-time jobs a week. Full-time jobs are fewer and fewer because of health benefit requirements and unfunded mandates.

Employees making more money will be a moot point. Workers will get more money per hour but fewer hours per week, or consumers will pay higher prices at the cash register.

Rick Hannon

Saco


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