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Bad timing for wage hike
2 years ago | 438 views | 0 0 comments | 8 8 recommendations | email to a friend | print
Dear Editor:

After reading the front page article in your fine paper Friday concerning the 16 percent unemployment rate in LaGrange, I was astonished at the double-edged sword that has been created. Friday was also the day that our U.S. government raised the minimum wage.

As a business owner, I can certainly understand that good employees need to be compensated accordingly, sometimes double the minimum wage. However, this creates a double-edged sword as some businesses have already made budget cuts in order to make a profit. Now, they are forced to increase payroll expenses which, in turn, may result in layoffs or hour work reductions which, in turn, will increase unemployment numbers, if done by a large number of businesses.

If you, the employer, have 20 employees, this adds up to an additional $2,240 in monthly expenses, not a huge increase if business is booming and you have to have all 20 employees.

As you can see, the timing could not be worse in this major recession.

To those that need/have jobs, thank God. And to those who do not, get busy and best wishes as those state checks are temporary.

Kenny Cosper

LaGrange
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