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Minimum wage initiative moves forward

Published: Apr 21 2008, 5:15 PM · Updated: Apr 22 2008, 12:01 AM
Category: Local News
Topic: Jobs

Signature collection will soon begin for a proposed ballot initiative aimed at raising the minimum wage within the city of Eureka.

Eureka Fair Compensation Act proponent Bill Holmes said about 1,200 signatures are needed by early June in order to qualify the proposed initiative for the November ballot.

In the weeks since Holmes filed a notice of intent to circulate an initiative, which will begin in several days, the idea of raising the minimum wage to $10 per hour has received mixed reactions from the community.

The North Coast Industrial Workers of the World recently enlisted support of the proposal.

“The ballot initiative will help alleviate some of the burdens felt by most of us in the community who work for minimum wage, or just above it,” Angie Hart, a North Coast IWW delegate stated in an e-mail to The Eureka Reporter.

“We live in a society where working people do all that needs to get done, and we don’t have a proportionate say or share of what we help produce and contribute, whether it is at our jobs in the community or country at large,” Hart said. “Reform can’t fix a fundamentally unjust system. Coming together to tangibly improve our situation is a step to real change.”

Holmes said evidence indicates a minimum wage increase would actually benefit local businesses instead of harm them.

“Lower-paid employees shop more locally,” he said, spending whatever they take in. “It tends to circulate in the local economy.”

J Warren Hockaday, executive director of the Eureka Chamber of Commerce, said the Chamber’s board has yet to take a position on the initiative.

While the initiative is well-intended, he said, it would likely have the opposite result for businesses and the economy.

“Any time there’s a structural across-the-board increase in either pay or benefits, that cost naturally is going to get transferred,” Hockaday said, while the costs of goods and services rises.

“Historically, minimum wage positions are entry-level training positions,” he said, with people later moving on to higher paying jobs.

Smaller businesses that typically pay minimum wage operate on a narrow margin, Hockaday said.

“It would force them into raising prices,” he said, and possibly result in fewer customers and clients.

Additionally, limiting the wage increase to Eureka would put businesses at a competitive disadvantage.

“I think a better way to approach increasing wages is to take a look at genuine economic development,” Hockaday said.

Holmes said he proposed the initiative, in part, to help working youth.

“People just aren’t making enough money,” he said. “I think this is something that needs to be done.”

For more information on the Eureka Fair Compensation Act, go to www.fairchance.us or www.eurekaworkers.org.

Comments32 comments   Back to topBack to top
Anonymous — Apr 22 2008, 7:00 AM

“We live in a society where working people do all that needs to get done, and we don’t have a proportionate say or share of what we help produce and contribute, whether it is at our jobs in the community or country at large,” Hart said. “Reform can’t fix a fundamentally unjust system. Coming together to tangibly improve our situation is a step to real change.”

WATT THE HECK DID SHE SAY? BLAH BLAH !!!

Anonymous — Apr 22 2008, 8:30 AM

Thank goodness for Bill Holmes standing up for working people in Eureka. The working poor have been exploited for long enough.

Anonymous — Apr 22 2008, 8:49 AM

I would speculate that many people will change buying habits when in Eureka a oil change will be $50 and elsewhere it'll be $30, Car wash $15 elsewhere $8, burgers $3 elswhere $1.6, the economics of this won't just change minimum pay.

Anonymous — Apr 22 2008, 9:20 AM

Hey 8:49, if the minimum wage goes from $8 to $10 that's only $2 difference, so even if it took one man hour to do an oil change (in reality it takes less), that would be $32 vs $30, not $50 vs. $30. That is unless, the business owner were trying to milk some extra profit out of the situation. Is that what you were thinking?

Anonymous — Apr 22 2008, 9:21 AM

Stupid idea. prices are off the charts and it will impact the small business. Watch how many of them close in the first year. The money won't come back to the city of Eureka, it will go to Arcata and other towns who won't have to raise prices and will offer better prices than the businesses in Eureka. just a dumb-ass idea. period.

Anonymous — Apr 22 2008, 10:05 AM

It will only hurt the economy. The math speaks for itself. Only simplistic idiots think that you can use the heavy hand of government to manipulate prices and get away with it.

Why don't we just print more money if its that easy?

No, we need to provide real economic opportunity not take it away.

$10 min wage will generate high local prices, less jobs, more business will leave Eureka and we will have less tax revenue.

It a great idea if you want more blight and poverty.

Anonymous — Apr 22 2008, 10:41 AM

It will not hurt the economy of Eureka because most people will still spend their money in places like Redding or Ukiah.

Anonymous — Apr 22 2008, 11:31 AM

Sweet! McDonald's employment applications will increase.

Don't waste your time on this nonsense. They'll probably slip a different initiative on you while you are signing this one.

Be cautious on what you sign.

Don't be cattle!

Anonymous — Apr 22 2008, 11:58 AM

The McDonalds on 4th street isn't going anywhere. Don't believe the hype and the lies from the neocons, this will improve Eureka's economy, with the multinational corps like McD's sucking out less money out of the area, the working poor having more money to spend, and the local businesses seeing more of that spending.

Anonymous — Apr 22 2008, 1:09 PM

9:20 has never had to pay the taxes that go into "owning" W2 workers-

be an Adult and start your own gig- don't look to government and beaurocrats to solve anything- it's why our Founders stood for small government.

The more government is out of our daily life, the better the economy and people's lives will be.

If things are expensive- blame the federal reserve, a group of offshore international bankers who in 1913 hijacked our currency and they are printing all of us into a third world country. Before the federal reserve we had currency of gold and silver- those bankers stole it all.

Anonymous — Apr 22 2008, 2:30 PM

Hey 8:49, if the minimum wage goes from $8 to $10 that's only $2 difference, so even if it took one man hour to do an oil change (in reality it takes less), that would be $32 vs $30, not $50 vs. $30. That is unless, the business owner were trying to milk some extra profit out of the situation. Is that what you were thinking?

It's two dollars to the employee, it's more than that to the employer.

Anonymous — Apr 22 2008, 5:16 PM

It's more than that 2:30 PM

More pay does not necessarily mean more spending power. If product and service prices are increased to cover increased personnel costs it's a wash, except for the fact that everybody pays the increase. More than that, the reduced cash flow for those small margin businesses that employ primarily minimum wage employees will be less able to hire new employees or pay raises for existing workers.

And 11:58 your name calling truly illustrates an absence of critical thinking. Minimum wages are not just paid by the franchise McD's. Your neighborhood market, gas stations, local hotels really any small, local business will also be affected adversely resulting in fewer net jobs.

If this is going to be your campaign against the evils of corporate America you are sadly out of your reckoning. I suggest you cut down on the big macs instead and get some job skills and a work ethic and escape that corporate bondage once and for all. Otherwise it might be less strenuous to satisfy your need to achieve meaningful social justice through hateful blogging. Oh wait a minute, you already thought of that.....didn't you?

Anonymous — Apr 22 2008, 5:22 PM

The bosses can afford to pay the workers a living wage, they'd just rather keep it for themselves. Profits continue to be strong for McDonalds, Burger King, Round Table and all these other fast food joints. Just look at their quarterlies.

Anonymous — Apr 22 2008, 5:23 PM

That's right 5:16, denigrate fast food workers as a campaign tactic, that's the kind of slimy class warfare the bosses like to unleash.

Anonymous — Apr 22 2008, 6:30 PM

Wow 5:23!

Do you have any idea how ignorant that sounds?

Read 5:16's post again and point out the specific language that denigrates fast food workers. My son works at a franchise fast food outlet. He doesn't expect to make a career out of it.

If you really want to engage in the rhetoric of class warfare, you should at least grasp a few basic economic concepts. These cheap accusations really make you look rather foolish.

I'm amazed you survived the math question.

Anonymous — Apr 22 2008, 6:53 PM

If first you don't succeed in denigrating minimum wage workers, denigrate some more. So now we're not only unmotivated, but stupid! Now that's what I call bringing people together, which has always been what the City of Eureka's all about, right?

Anonymous — Apr 22 2008, 9:43 PM

Well you have to admit 6:53....you do not bring much to the debate.

Not a denigration just an observation. You wouldn't know the difference though would you?

Enjoy your experiment with the English language, it is amusing.

Anonymous — Apr 22 2008, 9:57 PM

So, my question is: The business is in the limits of the city of Eureka. The employee lives in Arcata. Does the employee get the increase or will the employee, also have to live in the city of Eureka? Silly questions... yes. But needed. What questions concern you?

Anonymous — Apr 23 2008, 6:40 AM

As a small business owner in Eureka, we are not a fast food business. We struggle to make it and provide quality goods, made with quality ingrediants,on a daily basis. I guarentee you that we do not pocket anything!It already costs about $20. an hour for each employee at min. wage because of workmans comp. These positions are not life long positions, but "start up" jobs to gain experience and a good reference to a higher paying job. I am upset about people deamonizing small businesses or lumping fast food establishments all together with us. We as a family put in 15 hour days to provide our services with the hopes of making it in Eureka. We take pride in our business and in Eureka. We simply would have to increase prices which jeapordizes us in succeeding. ...Mity-Nice Bakery, Eureka

Anonymous — Apr 23 2008, 8:25 AM

Yes Mity-Nice, god forbid you pay your workers a living wage while you reap the profits and the long-term benefit from building up your private capitalist enterprise. The peanuts you throw at your employees pale in comparison to that...

Anonymous — Apr 23 2008, 11:51 AM

I thought people moved to Humboldt because they "did'nt care about money". They wanted a " simpler , non-materialistic quality of life". Yeah , then they start growing pot and sponge all social services. Now they want the highest rural minimum wage in the country! What happened to "live simply so that others might simply live"? Why not supplement your income by begging on the plaza? It's tax free! Hippies should be required to take a basic economics class.

Anonymous — Apr 23 2008, 1:32 PM

Santa Fe is $10.50 an hour, so no, this would not be the highest rural minimum wage in the country. Besides, Eureka is not rural, Eureka is a city just like Santa Fe -- except rents in Santa Fe can be more affordable since there's actually some interest in affordable housing in New Mexico, unlike California.

Anonymous — Apr 23 2008, 3:23 PM

mity-nice and fellow small businesses shame on you, expecting a return on your risk, investment and tolerance of pople who only have time for social engineering.

Anonymous — Apr 23 2008, 3:56 PM

Sounds like that Bill doesn't work for a living and got fired from his last job for attacking minors.

Anonymous — Apr 23 2008, 6:35 PM

...Mity-Nice Bakery, Eureka

If these would-be social engineers can't or won't understand the sincerity of your post, I do.

The dull, ignorant or simplistically oriented hold to the broad principles without being troubled by any factual or experiential basis upon which to opine.

I'll be shopping at your bakery.

It's a promise.

Anonymous — Apr 23 2008, 10:26 PM

instead of raising the minimum wage, why not get some industry back into our area that can offer higher paying jobs? It's pretty sad to constantly see good paying jobs leaving the area and nobody lifting a finger to offer incentives or ?? to businesses to stay or to the potential new to come in to replace them. Tourism isn't going to provide it, any service type business isn't either. Good manufacturing jobs are the backbone we need for good wages and tax base.

As they mentioned above, these minimum wage jobs were never meant to have a person remain in that position, but to move up to a better paying job once they received experience.

Anonymous — Apr 23 2008, 11:32 PM

Eureka ,CA population = 28,000 ........Santa Fe, NM population 72,000

Anonymous — Apr 24 2008, 7:39 AM

Industry? in Eureka? In Humboldt county? no no no. let's just do tourism and pay everyone in eureka $20. an hour. and we'll all smell the flowers in the afternoon, and write poetry and...." owhat bull shit. I think I'm getting sick

Anonymous — Apr 26 2008, 7:38 AM

"From Mity Nice" Actually, we do believe in paying a living wage, and when we build our business up enough to hire an employee (or two) we will certainly do so. I think that it boils down to just how much you are willing to pay for your cookie, sandwich, soup or coffee. It is a fine line to provide merchandise or a service to make money to hire employees, support the expenses and take home a living wage for the business owner vs. not having customers choose to spend at an establishment because the prices are too high. There seems to be an assumption that a small business takes home a lot of money.Perhaps the people who say that have never run a small business.

Anonymous — Apr 27 2008, 12:44 PM

To Apr 22 2008, 11:58 AM,
You wrote
"The McDonalds on 4th street isn't going anywhere. Don't believe the hype and the lies from the neocons, this will improve Eureka's economy, with the multinational corps like McD's sucking out less money out of the area, the working poor having more money to spend, and the local businesses seeing more of that spending."

Why do you think McD's multinational corps will suck less money? We can't just tell them we raised minimum wage and so they are going to be getting less each month. They don't care they get there money or they pull your right to use there logo and product.

And if the dumb citizens out number all of us who know the real effects of this increase, and decided we can afford the $2 more then I don’t see why not $30 or more.

Anonymous — Apr 28 2008, 8:10 AM

You Go Bill Holmes, push that through and let other municipalities take a lesson from you. I obviously see the benefit of this increase, since I see so many people working full time and still making below the national average of poverty. Most employee's are little more than personal slaves to the entity that is known as their job.

Anonymous — Apr 28 2008, 8:55 AM

hmmm.....'some' people on here appear to know what they are talking about, or have at least thought about this.

But what I dont see is an answer?

But the jist, as I understand it, is:

'Raise min. wage, everybody has to raise what they charge as well, so it would mean more cost and less bus. to business owners.

SO-

Is that the same as saying:

if we LOWERED wages,
the local economy would be better?

Not trying to be cute- just trying to figure out what the best action would be?

Folks working min. wage jobs would have a few more bucks- offset of course by rising gas, food, rent, etc.

Meanwhile- nothing good comes from this to business?

Again- just want a simple explanation, not trying to start any fights. (I know how 'touchy' people get on these boards....)