Minimum wage increase hits businesses where it hurts

Minimum wage increase hits businesses where it hurts

EDITOR:

After reading the main story in last Sunday’s Business Section regarding the effects of the minimum wage increase on small business owners, I am compelled to write to you.  

I, like the other owners that were interviewed, have seen the drastic effects of the minimum wage increase on my business. Starting Jan. 1 of last year, the wage went from $5.15 an hour to $6.85; a 33 percent increase overnight.

One of the largest expenses for my restaurant is labor costs. Only the ability to manage and control it keeps the business running. On average, restaurant labor costs are 28-33 percent of total annual expenses. When you increase 30 percent of your expenses by 33 percent overnight, the ramifications are severe.

Restaurant and other business owners are forced to take several steps, all unsavory:

UReduce labor costs by reducing the number of employees

UAssign remaining employees with additional tasks of the eliminated employees

URaise prices

UPersonally return to doing manual tasks (like dishwashing) instead of managing the business

Moreover, on Jan. 1 the wage went up another 2.2 percent to $7. So, after owning my local restaurant entering into its sixth successful year, I went back to washing dishes. What is more humbling and frankly, embarrassing, is that to offset these costs, as written about in last week’s article, we had to raise our prices. The increase in minimum wage, coupled with the rising cost of meats, cheeses, milk, oil, gas, and even alcohol-related items, can be fatal to a lot of small business owners.

The increase in minimum wage gives an automatic non-merit based raise to employees who are left. The increase in the minimum wage does not affect the employees who were let go. In fact, they are not even making minimum wage now but are now unemployed. The remaining employees must now work harder, doing both their jobs and parts of the eliminated employee’s tasks.

An increase in the minimum wage was overdue, but a gradual increase is something businesses can manage and plan for. A 33 percent overnight increase is not reasonable or manageable.

Today, I apologize to my customers at the Youngstown Sports Grille for two reasons: first, for our price increases resulting from the aforementioned reasons. Secondly, for not coming out as often as I should and thanking them for their business (I have been washing dishes).  

SEAN PREGIBON

Youngstown

Ohio needs uniform rules covering candidate petitions

EDITOR:

When I went to pick up my petitions for the 60th District state representative race to run as an independent candidate, I received the following information regarding signatures from the Mahoning County Board of Elections:

State Representative:  60th District   Democratic and Republican candidates need 50 valid signatures, I need 321 valid signatures.

17th Congressional District: Democrat and Republican candidates need 50 signatures. Independent candidates need 2,200.

Mahoning County commissioner: Democrat and Republican candidates need 50 signatures, Independent candidates need 953. The same goes for county coroner, treasurer, sheriff, engineer, and recorder.

The two major parties can just go to a party meeting and gather signatures from the their county chairman and neighborhood committee leaders. Independent candidates must walk neighborhoods, stand outside shopping centers, libraries and other public places to gather enough signatures to run.

Is this fair? Is this a democracy?

President Bush has spent six years trying to bring democracy to Iraq, which has cost more than 3,900 American lives.

How can we bring democracy to Iraq when we do not have democracy in Ohio? It is time all candidates have the same registration requirements to run for office in Ohio.

Now you know why we have no political races in November. Now you know why there is no forward movement in our economy and Valley because our choices are hand-picked by our party bosses. No party candidate would dare challenge a party incumbent.

DENNIS S. SPISAK

Struthers

X Spisak is an independent Green Party candidate for 60th Distict state representative.

Tired of tough guy politics

EDITOR:

I am writing to address a few issues that I had with Bertram de Souza’s Jan. 13 column regarding the Mahoning County commissioner’s race and the Oak Hill situation.

First, my opponent is not seeking a third term. He is in his first term.

Second, the fact that I have never held public office is a true statement. My opponent, as well as another sitting commissioner, never held an elected office prior to being elected. It is obvious that the public does not mind people without elected office experience making decisions about their tax dollars.

Third, I also have a positive reputation in the teaching field working with special education students, as well as coaching young men on the football field for over 18 years. While maintaining these important responsibilities, as well as raising a family, I have been working hard for a year to reach this goal of becoming a county commissioner.

Finally, to answer Mr. de Souza’s question on, “Why the owners of the McGuffey Plaza did not recruit a challenger for my race,” it is because the owners won the lawsuit. They were paid $1 million to get out of a lease that has not been signed for eight years. Does that sound like it was done in the best interest of the county taxpayers?

While I have the utmost respect for all the writers at the Vindicator, especially Mr. de Souza, I think the county is tired of tough guy politicians who engage in personal wars with taxpayers’ money. As far as a race with substance, the voting public will decide that issue on March 4.

ERIC UNGARO

Poland

Libertarians offer hope

EDITOR:

As the presidential election year develops, among the Republican candidates to lead the nation, Ron Paul of Texas, is drawing a surprising amount of media attention. Although he may not win the nomination because he is viewed by the powers-that-be as too devoted to the Constitution, he may well receive the Libertarian Party endorsement as its candidate.

I believe that more and more Americans are beginning to realize that our nation’s congressmen, of the two major parties, have abandoned the principles of our founding fathers, and adopted the “anything goes” attitude of “statists” throughout the world. The Libertarian attitude can be neatly summed up “leave us alone, we don’t need or want government programs that reward moochers and send the bill to productive citizens.”

Ultimately, more and more voters will realize that Congress is leading us to national bankruptcy, and destruction of jobs and the economy. The only hope is to wake and adopt Libertarian principles.

MILTON R. NORRIS

Canfield