Everyone has had a difficult time since the pandemic hit. Mental health struggles are up, families are stressed, uncertainly is everywhere. Across the nation, 140,000 jobs were lost in December, the largest decline since April. The local economy is hurting, too, and when we say “economy,” we mean business owners and our employees. These are tough times, but you know what’s making them worse? Implementation of the emergency wage provision that voters approved last year by referendum on the Portland ballot.
David Turin, chef and owner of David’s Restaurants, filets a fish in the kitchen at his restaurant in Monument Square on Jan. 6. Turin has not cut hours or raised prices, but he said his restaurants are surviving on government grants. Brianna Soukup/Staff Photographer
We simply can’t afford any more financial hardships. It’s easy to think that because someone owns a business, they must be making – and keeping – a lot of money. Well, the goal of any business certainly is to bring in more money than is spent in running it. If that doesn’t happen, the business fails. If we don’t make adjustments for the new emergency wage provision, then we will fail, and many people will be out of work.
As the Press Herald reported Sunday, these adjustments have cost some people their jobs, and thus their benefits. The adjustments are costing others hours, overtime and reduced or lost benefits. They may cost customers or clients in services.
We understand what it means to be an essential business or nonprofit and to be an essential worker. We understand a desire to raise the minimum wage, but raises don’t happen in a vacuum. Without proper policy planning, they don’t happen without unintended consequences.
During a declared state of emergency, such as we’re in now, the referendum demands that Portland employers pay hazard pay, resulting in a minimum hourly wage for all employees of $18 ($27 for overtime). Can Portland afford to have the highest minimum wage in America? This is just not sustainable.
When the minimum wage ramps up to $15, the emergency minimum will be $22.50 ($33.75 for overtime). The emergency minimum wage would apply to all employees who physically report to work in Portland, even if the employees are not in harm’s way during the declared emergency.
Here is a very real scenario that could occur: We know seas are rising and severe weather is becoming more unpredictable because of climate change. Let’s say Commercial Street floods in the future and a state of emergency is called. All employees in Portland who physically go to work would receive the emergency minimum wage of $22.50 ($33.75 for overtime). Every small business in Portland not on Commercial Street and away from the flooding still would have to pay the emergency and overtime minimum wage.
At best, the emergency wage provision is well-meaning activism with extreme unintended consequences that will hurt the very people it’s meant to help. We’re already seeing many small businesses close and lay off workers, because there’s nothing else that can be done. In addition, those business owners and nonprofits who have taken the issue to court are being pilloried on social media. Passage of this provision is a lose-lose situation for all Portland employers and for many employees.
Small-business owners are concerned for our families. We’re concerned for our employees. Our businesses already are teetering on the edge of the economic cliff because of the pandemic. We’re asking people to please understand that many realities are unfolding in the wake of passage of the emergency wage. Yes, some workers will be paid that wage, but at what cost? In some cases, the cost will be their co-worker’s job, or the closure of the businesses next door and across the street, or the services available to clients of social service nonprofits. There will be a cost to the city of Portland as businesses close or move out of town. Not every employer in Portland is Jeff Bezos, and most nonprofits are operating on thin ice in any year, but especially this one.
Our hope is that people will understand that our small-business and nonprofit community is full of good people who want to serve our customers and clients, keep our employees and save the businesses and institutions we’ve spent years building.
Send questions/comments to the editors.
Comments are no longer available on this story