STORY by STEVE TRAIMAN
Representatives of the Florida Chamber of Commerce (FCOC), Florida Restaurant & Lodging Assn. (FRLA) and Slyce Pizza for small business highlighted the impact of a $15 minimum wage on the state’s economy.
The November 7 panel discussion was co-sponsored by the Tampa Bay Beaches Chamber of Commerce (TBBC) and Amplify Clearwater, the new Chamber formed by the merger of two area groups. Doug Izzo, TBBC Director of Government Affairs, played a key role in setting up the program.
Moderated by Amanda Payne, Amplify president & CEO, the panel included Jerry Parrish, chief economist and research director, FCOC Foundation; Slyce operations manager Suzanne Brown; and Richard Turner, FRLA senior VP, local & legislative affairs.
Introducing the panel, Izzo noted the issue has come front and center since the US House recently passed HR 582, a proposal to raise the minimum wage to $15/hour by 2025. A state Constitutional Ballot Initiative, proposed for the 2020 election with more than 766,000 petition signatures and supported by businessman and philanthropist John Morgan, would increase Florida’s minimum wage to $15/hour by 2026.
At $8.46/hour, Florida’s minimum wage is already about 17% higher than the federal total of $7.25, that has not been increased since 2009. Under the new House proposal, it would increase to $10 in 2021, and reach $15 by 2026. Seven states have gradual $15 minimum wage hikes: Connecticut, California, Illinois, Maryland, Massachusetts, New Jersey and New York, as well as Washington D.C
Examples & Comments
Turner led off with a short video featuring the owner of a small “mom & pop” Jacksonville restaurant who noted that an increase to $15 would mean less annual income to most of his workers with a shift from employee to independent contractor; less on-site help; and higher menu prices.
Brown, a partner in Slyce locations in Madeira Beach and Indian Rocks Beach, with a third soon in St. Pete Beach, noted that such an increase would likely lead them to cut staff and hours, raise menu prices and actually mean lower wages for most staff – who all are like family.
Parrish, long-time economist for the FCOC Foundation, had graduate students do an impact study that showed raising the Florida minimum wage to $15 would make it almost impossible for those at or near the poverty level to get such a job without losing significant government benefits.
“This is a job killer, not a job creator,” said attendee Sheri Heilman. Her family business, the Bob Heilman Beachcomber, is a 71-year staple on Clearwater Beach. Her employees are like family, she says. That’s why she can’t imagine cutting jobs or hours. “They will be sent home early, their hours will be cut,” she said. Her other option is to increase menu prices. “That’s not something we want to do. We have great online reviews for excellent services and prices and we think this would have a big impact,” Dustin and Renee O’Neal opened Sunshine Scenic Tours at John’s Pass five months ago. “The expense that it requires to run a business is more than I ever expected,” Dustin said. “We would be forced to increase tour prices from $39 to $50 for adults, a move that could run the risk of putting us out of business. I just don’t see how that’s going to work.”
Local ABC News also covered the meeting, noting that just across the street from the Holiday Inn Harbourside meeting site, a group of workers taking part in the “Fight for $15” movement made their voices heard. “15 and a union! 15 and a union!” They chanted. “What do we want? $15. When do we want it? Now!” Alex Harris says a minimum wage hike is essential: “We just want to make enough money to be able to live. That’s it.” He works 15 hours a day at two low-wage jobs just to make ends meet. He continued, “I work from 7:30 in the morning until 4 p.m. doing landscaping and I only have enough time to take a shower before I have to be to work at Checkers from 5 p.m. until midnight. Even if you are in a better situation, I hope people will look at those who are not.” Asked by the audience what they felt would be a reasonable increase to a “living” minimum wage, Turner from FRLA said “about $11 or $12.” Parrish of the FCOC declined to answer, explaining that in his position, he could only talk about the economics of a minimum wage. He said, “only about 2.1% are now earning the US minimum wage, and an increase would exclude many from subsidized health care and other key benefits. We should be talking about “How do we help people get the skills they need to make more money?”
Summing up, Robin Miller, TBBC president & CEO, thanked the panel and audience for the excellent discussion, and emphasized that the Chamber had come out against the increase to a $15 minimum wage in Florida, and was encouraging all its 800-plus members to support this position. The Chamber program suggests that members take action: Have a discussion at your next staff meeting with Izzo willing to speak at any of your meetings … Educate individuals in the service industry when you go out to eat, stay at a hotel, etc.
Talk to your friends and family as we all know someone that could be affected … Join in on dialogue on social media … and sign up for text updates: tampabaybeacheschamberofcommerce.emobileplatform.com/k/tYAB3s
For more information, and to download a PDF of business card-sized handouts, go online to: tampabaybeaches.com/minimum-wage.html
[Editor’s Note: Special thanks to Amanda Payne, Amplify Clearwater; Jerry Parrish, FCOC Foundation; Suzanne Brown, Slyce; Richard Turner, FRLA; Robin Miller and Doug Izzo, TBBC, for their excellent input.]
Steve Traiman is President of Creative Copy by Steve Traiman, St. Pete Beach, providing business writing services at traimancreativecopy@gmail.com or by phone to 727-363-7531.]