The Minimum Wage Debate
The CT State Legislature finally passed a $15/hour wage after a contentious debate as reported in this article by Mark Pazniokas and Keith M. Phaneuf of the CT Mirror. The debate was contentious, of course, because of the sharp divide between Republicans who put the concerns of business owners at the top of their agendas and majority Democrats who favor the cause of workers. This debate is essentially about what constitutes a “fair Wage” in CT.
A Case Study
I have closely followed this process because of my commitment to basing the pay of the contractors who work with me at a minimum of $15/hr. I have made this commitment because my business, United Sewing and Design, is a social enterprise which focuses on workers first in addition to customers. However, like any business owner, I have to balance the needs of my workers against the opportunities to earn income. l won’t do anyone any good if I don’t stay in business. For example: as a manufacturer, the work we do is often for resale. Therefore, simply put, there is a limit to what our customers can afford to pay us. Often, our customers allow the retail market in which they compete to determine their price and thus, the amount they can afford to pay for manufacturing. This is not anything new.
So far, in order to reach and sustain my pledge to pay a $15 an hour wage, I have had to turn down work from several customers because the retail price of the item being discussed was not high enough. This hasn’t negatively affected our bottom line up to this point. Additionally, I have begun to actively seek out work that sells at a higher retail price and am investigating manufacturing fields where retail price is not a factor. These haven’t been difficult decisions, but I’m making them during the formative stages of business development while I am still scaling up.
Many business leaders are not happy about the gradual increase to a $15 wage. They have legitimate concerns, which I share. But, I feel that the $15/hr wage which approaches a fair wage, is a necessary start to strengthening our entire state economy.
To frame this debate and the action by our legislature, pick up this book by Zeynep Ton, read this about what counts as the “middle class” in CT according to the Census Bureau, and this about what supposedly is a “living wage” in Hartford County. Hint: it will take until fall of 2021 to reach a so called “living wage.” Also, $15 an hour will in no way approach a middle class income in CT.
Mary Ruth, Owner of United Sewing and Design has over 30 years experience in the manufacturing of products by sewing and is author of “Industry Sewing Construction Methods” http://amzn.to/2yMxMmk. Her focus is on design, entrepreneurship; social enterprise; the connections between the environment, the apparel industry, and manufacturing; and how owners can leverage artistic methods to benefit their business.