Folks, you’ve read on Save Jersey about Steve Sweeney’s plan to put a minimum wage into the constitution. You’ve heard from Matt Rooney why its a bad idea. Earlier in the year, when Sheila Oliver tried to raise it, you heard from me why it was a bad idea.
It’s still a bad idea now.
That’s why since 2010 New Jersey’s very own, super-duper committee on the minimum wage has recommended against raising it. But Democrats won’t listen. It hurts businesses, it hurts workers, it hurts customers.
Now, I could throw studies and economics at you to show why this conclusion has been arrived at three separate reports in a row. But I find putting things in everyday terms, to which we can all relate, is a much more effective approach.
Let’s look at things in terms of your local South Jersey Wawa (sorry, North Jerseyans. This is my analogy).
When I grabbed lunch there yesterday, there were 6 people working, which is typical for any Wawa at any given time of day. Let’s assume each of those employees earns $7.25: the current state minimum wage. Now, hours of operation for each Wawa location vary, so let’s assume our “generic” Wawa location is open 16 hours per day (some are 24/7, others aren’t), with 2 shifts of 6 people working 8 hours per shift. So you can expect to see an average of 12 people working 8 hours each at Wawa. So when you do the math, Save Jerseyans, 12 people making $7.25 (plus 17.5% payroll taxes) for 8 hours results in our generic Wawa’s total labor cost for one day totaling $817.80.
Now raise that rate to $8.25 an hour…
Total cost of labor for a a day is now $930.60, a difference of $112.80. So they lose that much in profit For one day. Extrapolate that out to a 360-day year, and it costs just that one Wawa location $40,608 more in labor. Again, all for just that single location.