X

Some good, some bad in St. Lawrence County with minimum wage hike

Posted 3/24/13

By JIMMY LAWTON More than 20 percent of St. Lawrence County’s workforce would receive raises from a minimum wage increase, according to U.S. Sen. Kirsten Gillibrand, but some say it might do more …

This item is available in full to subscribers.

Please log in to continue

Log in

Some good, some bad in St. Lawrence County with minimum wage hike

Posted

By JIMMY LAWTON

More than 20 percent of St. Lawrence County’s workforce would receive raises from a minimum wage increase, according to U.S. Sen. Kirsten Gillibrand, but some say it might do more harm as well as good.

Last week, Gov. Andrew Cuomo and legislative leaders agreed to a state budget deal that would raise the minimum wage from $7.25 to $9 over the next three years. The governor said the current minimum wage “is unfair, unlivable and unsustainable.”

But some in St. Lawrence County are concerned about possible effects of the minimum wage increase.

Although she does not oppose the minimum wage hike, Catherine Mathews who runs the Canton Church and Community program, questions how much the increase will benefit those it pushes “above the poverty line.”

"A lot of the people who come to the food banks are the working poor. If they get more money in their salary that could impact their ability to use the service," she said. "If they get a bit more money in their checks it could bump them out of the level that allows them to receive food, but not enough to offset that loss," she said.

St. Lawrence County Farm Bureau President John Greenwood said the wage increases could cause several problems for farmers.

"We are dealing in a national and international market. We have to keep costs down to be competitive," he said.

Greenwood said if the hike goes through, state legislators need to consider raising the value associated with supplied housing, a common benefit provided by many farmers that he says has not been adjusted for inflation.

"A lot of farm workers on the lower end of the scale are being supplied with housing, but there has been no talk about increasing the value of that compensation," he said.

Raises for 9,600 Workers

Using data from 2011, Gillibrand said 9,600 of the county's 43,000 workers would benefit from an increase in the minimum wage.

However, she believes the state increase is not enough and is backing a federal bill that would raise wages to $10.10 per hour over the next three years.

"This is a commonsense measure that is long overdue," Gillibrand said. "Boosting wages would not only lift poor working families above the poverty line and onto stable ground, but it can also drive economic activity and strengthen local economies."

Meanwhile, Mathews said eligibility requirements are set by the state. Currently an individual can access a food bank if he or she makes less than $1,724 per month. For families of four, the income cap is $4,545 per month.

"I just worry about those borderline people who may be bumped out," she said.

Despite the concerns, Mathews said she was not opposed to the hike.

"I have some minor concerns. There is always good and bad," she said. "I am sure people will be happy to have a little more money in their check."

Mathews, who works with many low-income families said she would rather see the state focus on ensuring benefits, namely healthcare, to the working class.

The proposed minimum wage increase has also raised concerns for farmers, who have already been struggling to keep up with increased operating costs.

Increased Costs for Farmers

Greenwood said the increased wage will also mean an increase in unemployment benefits and worker's compensation. He said the seasonal nature of farm work can often result in workers collecting benefits in the winter months.

"Your unemployment payments are based off wages and as wages go up the benefit costs go up," he said.

Greenwood said farms often hire local teens in the summer months, who use their time on the farm for extra money and for a learning experience, but as wages increase farmers may look for workers with experience.

"If you set the level to high there is a question for the farmer if it is worth hiring and training these kids and losing them the next season, or hiring someone who knows a bit more," he said.

Greenwood said any increase in minimum wage should take in some considerations to offset the costs. He said there has been talks of putting a 2 percent cap agriculture land assessments, that would make the hike easier to swallow.

"If we are going to increase minimum wage, maybe we should have a cap on property assessments. Currently that cap is 10 percent," he said.