Maine people, through a citizens-initiated question, will have a chance to decide whether to raise the minimum wage in this state in November. The issue before the Legislature right now is, is the question headed to the voters the right question to be asking?
Given the stakes at hand for many small businesses and restaurants across this state, we think the answer is no. And we think legislators should and can ask a better one — one that may result in a higher minimum wage in Maine without the economic consequences for so many of our small, local businesses.
Because of Maine’s Constitution, lawmakers are allowed to include a “competing measure” on any citizens referendum question. Let’s be clear here: We think it is critical they choose to do so with this question.
The business community is looking for a more reasonable option for increasing entry-level wages at a sustainable level — a proposal our members find more realistic, given the broad impact escalating wages have in the face of our still-recovering economy. To be clear, our coalition is committed to promoting it in November and ensuring its passage.
It is true that an increase in the minimum wage is long overdue, and it is true the business community has opposed most efforts to increase the minimum wage in the past. But that is also convenient revisionist history — and only part of the story. The last time the minimum wage increased here was in 2009, in the midst of one of the worst economic recessions in our country’s history. Maine had double-digit unemployment, lost tens of thousands of jobs and businesses shut their doors. Yes, there were minimum wage bills considered during this time, but Democrats, who controlled all three branches of government, killed their own efforts in 2010. Why? Because they knew higher costs of doing business would only exacerbate our economic doldrums.
This session, the business community made it clear to legislators that while we didn’t like the choices presented to lawmakers in terms of the eight bills to increase the minimum wage, we did support an increase and stood ready to work with them on a reasonable and viable proposal. That didn’t happen, but contrary to the memory of some in the State House, it was not because of the business community. It was because the Maine House and Senate couldn’t agree on the same proposal. To be clear, we were OK with either proposal, and we told legislators this. It didn’t happen.
By the way, this same Legislature also rejected outright the very elements of the Maine People’s Alliance proposal headed for the ballot. You read that correctly: Last session’s Democratic version of increasing the minimum wage flatly said no to eliminating the tip credit, no to indexing and no to a minimum wage higher than $10. In fact, they only proposed an increase to $9.50 per hour.
It’s somewhat surprising to see pushback from Democratic leadership on our proposed competing measure that adopts the same philosophy, but includes a 50-cent higher wage.
The fact is the proposal from the business community is sincere — one we are committed to seeing through to passage. While some may be content to take an ostrich-like approach to the impact on small businesses should the MPA proposal pass, our respective members tell us that the impact on them will be significant. Make no mistake, some restaurants will close their doors, hiring will be impacted, costs will go up. And while Portland may be closer to Seattle economically, Mars Hill isn’t. People will lose their jobs.
That is why we are advocating for the Legislature to provide voters with a more reasonable alternative. We are content to let the people choose. And should our competing measure be included, our coalition will not sit on the sidelines, content to be a bystander. We will push for the increase to $10 per hour.
If the Legislature offers no competing measure, the business community will have no choice but to oppose the MPA question. That’s unfortunate and not where we want to be.
We agree it is time entry-level wages increase, but it must be done in a way that’s sustainable. We are not looking to disrupt the referendum process; we are looking to improve upon it, to give voters a chance to increase wages without hurting the businesses they frequent. Our Constitution envisions the very process we are seeking. We can work together and accomplish a common goal. We hope the Legislature will agree.
Greg Dugal is president and CEO of the Maine Restaurant Association and the Maine Innkeepers Association. Peter Gore is vice president of government relations at the Maine State Chamber of Commerce.