BANGOR, Maine — A group of 500 small businesses organized by the Maine Small Business Coalition came out Tuesday in support of a proposed statewide minimum wage increase.
In November, Mainers will be asked at the polls whether they want to increase the state’s current $7.50 minimum wage in increments to $12 by 2020. For tipped workers, the sub-minimum wage would increase from $3.75 to $5 in 2017, and then increase by a dollar each year until it reaches $12 in 2024.
Small business coalition leaders, joined by a handful of business owners and employees who support the referendum, gathered at Fork and Spoon, a downtown Bangor eatery, to campaign for the wage hike. Fork and Spoon is among the supporters.
“I support raising the minimum wage because it’s the right thing to do, it’s good for my business, and will be a boost for the next generation of Maine entrepreneurs,” said Patrick Kelley, who owns Clockwork Baking Co. and the Coastal Cafe and Bakery in Searsport. “I truly believe that this referendum will not only help those 160,000 Mainers who will get a raise but help all of our communities thrive.”
The coalition has collaborated closely with the Maine People’s Alliance, a progressive advocacy group, on the minimum wage referendum push.
Kirsten Costedio, a college student from Corinna who said she works at a Newport restaurant making $8 per hour, said her parents were able to pay for their college educations by working minimum wage jobs during their high school and college years.
“I can’t do that today,” said Costedio, who also is a Maine People’s Alliance member. “That means it’ll be harder for me to buy a house or start a business when I graduate. I may even have to leave Maine to find a higher-paying job.”
The coalition also announced plans to launch a Fair Wage Restaurant Week June 13-19. During that week, the coalition is urging supporters of the referendum to eat at some of the 50 restaurants across the state that have endorsed the campaign, according to Maine Small Business Coalition Director Will Ikard.
While eating, Ikard said people should share a photo of their meal with the hashtag “#FairWageME” to show their support. For a full list of participating businesses, visit www.mainesmallbusiness.org.
The wage increase proposal has been controversial within the business community, with supporters and opponents of the effort competing with alternative ideas on how the wage should increase and by how much. The debate largely hasn’t been over whether the minimum wage should stay where it is.
“I don’t think anyone has argued that the minimum wage shouldn’t go up,” said Peter Gore, vice president of government relations for the Maine State Chamber of Commerce, during an interview Tuesday. What they have argued, is that this referendum is the wrong way of achieving that goal.
Gore said the chamber wanted to see the minimum wage increase, but that the step should have been taken by the Legislature. The chamber pushed a $10 minimum wage alternative, but it fell short of support in the Legislature.
The chamber, Maine Restaurant Association, Maine Innkeepers Association and other business groups have come out in opposition of the Maine People’s Alliance-led minimum wage referendum for two major reasons.
First, the referendum would eliminate the tip credit in Maine. That credit allows owners to pay workers who earn tips a lesser amount than the minimum wage.
Gore said owners, bartenders and servers alike are roundly opposed to the elimination of the credit, arguing it would “change the dynamic of our gratuity-based system,” and lead to less business for the restaurants and higher food prices.
Second, the groups don’t support the indexing proposed under the referendum. After the minimum wage reaches its new cap in 2020, it would increase each year after that as the Consumer Price Index increases. However, if CPI were to fall, the minimum wage would not fall, it would stay flat.
“It’s taking the control of the cost of doing business out of the hand of the businessperson,” Gore said.
Follow Nick McCrea on Twitter at @nmccrea213.