10/02/08 Another Wage Increase

Another Wage Increase. I'm Greg Martin with today's Fruit Grower Report. Good news for employees but not so good news for employers. The Washington State Department of Labor and Industries has announced the largest minimum wage increase ever effective January 1. FAZIO: Washington is a workers paradise but no one has a job. I've heard also in direct testimony that labor union folks have said between having more people working and less people working at higher wages we'd rather have less people working at higher wages and I just don't get that. That's Dan Fazio with the Washington State Department of Agriculture. The increase is scheduled to go up 5.9% to $8.55 and according to Fazio it looks there may be another big increase again next year. FAZIO: It's going to cause less dollars to hire people because what labor costs are, are one of your input costs of doing business. Just like when you turn on the lights, if your electricity rates go up, you try and conserve. You use less electricity. Same way, if the rate you have to pay people goes up then you are going to have less people employed. That will mean less people to do the same job. Fazio says it not the minimum wage that is the problem but the prevailing wages beyond the minimum. FAZIO: Then the piece rate system is really bad and it's really causing economic discrimination by our state really Greg. And what I mean by that is that farmers are going to be forced to fire older workers and younger workers and anyone who's picking skills or productivity don't meet the state mandated wage. And I don't think that is right. That's today's Fruit Grower Report. I'm Greg Martin on the Northwest Ag Information Network.