MARYSVILLE – Initiative 1433 would raise the minimum wage statewide to $13.50 over four years and require sick leave starting in 2018, actions supporters say would bring a more- livable wage for the lowest-paid workers.
Opponents say increasing wages would hit businesses where it hurts the most – their pocketbooks. The minimum wage measure is getting top billing among initiatives on the Nov. 8 general election ballot.
“It’s a straightforward and simple proposal to lift up Washington families, boost our economy and protect our community,” said Carlo Caldirola-Davis, campaign manager for Raise Up Washington, a “yes” coalition supporting I-1433 comprising workers, business owners, doctors, nurses, and faith-based and nonprofit groups, among others.
Not so fast, countered Bob Battles, director of Governmental Affairs on Workers Comp and Unemployment Insurance representing the Association of Washington Businesses.
“This initiative is unprecedented” for the impact it will have on businesses, from mom and pop stores to large corporations, Battles told a business crowd at a recent Greater Marysville Tulalip Chamber of Commerce debate at the Tulalip Resort and Casino.
Battles disagreed with supporters who suggested that there have not been negative impacts from raising minimum wage laws adopted by cities, or as far back as the 1998 bump in Washington’s hourly minimum wage.
He cited a few examples. The cities of Seattle and Seatac have their own minimum-wage laws. In Seatac many restaurants have downgraded to grab-and-go type eateries, resulting in job losses. Also, a Seattle company, Cascade Design, a global manufacturer that mostly does business with Switzerland, has opted to move its operations to Nevada.
Battles also pointed to a survey of Seattle businesses that were asked how they would respond when the city adopted its minimum-wage law. In all, 62 percent said they would raise prices, 30 percent said they would add a service charge or fees, 30 percent said they would reduce the number of employees, and 11 percent said they would leave.
Caldirola-Davis called attention to results from a University of Washington analysis to examine the impact of the minimum-wage increase so far in Seattle.
“They found more jobs created, workers making more, more businesses opened, and workers are getting more hours,” he said. “The sky doesn’t fall.”
Caldirola-Davis said the graduated increases over the next four years would boost the wages of more than 730,000 workers in Washington, and put an average $600 more a month into their pockets. He added that as a result of the increase in purchasing power, the initiative would add $2.5 billion more into local economies.
Battles said from an economic standpoint, it’s a zero net gain. When everybody’s labor costs rise, the products being produced go up, too, and that results in higher prices.
In 2015, the state had 719,856 low-wage jobs that could be affected by the initiative. In terms of hours worked, they were equivalent to 339,729 full-time jobs. More than half of the jobs – 195,886 – were in King, Pierce, Snohomish, Spokane and Yakima counties.
The initiative also mandates paid sick leave for employees, earning one hour off for every 40 hours worked.
“No worker should have to choose between going to work sick, or missing a paycheck,” Caldirola-Davis said. “But in Washington, more than 1 million workers do not have access to a single hour of paid sick leave. They will go in sick, or send a child to school sick.”
Battle said businesses are concerned about the sick leave requirement. The ability for workers to accumulate seven paid sick days in a year and to carry those over into the next would hurt productivity, especially for smaller companies.
Caldirola-Davis pointed out the public health aspect of sick workers, too. He cited a U.S. Centers for Disease Control statistic that one in five food-service workers went to work ill last year.
“When someone sick is handling your food, or a sick day care worker or nursing home worker, that puts people at risk,” he said.
