The area’s newest assemblyman has stirred up members of the
local city council by proposing to hike the minimum wage.
Councilman Victor Gomez wants the city to oppose Assemblyman Luis
Alejo’s bill proposing to increase the minimum wage and attach
annual increases to a price index.
The area’s newest assemblyman has stirred up members of the local city council by proposing to hike the minimum wage.
Assemblyman Luis Alejo, D-Salinas, got off to a quick start as he took office as San Benito County’s representative by proposing the increase. Under his bill, it would go from $8 an hour to $8.50 and would adjust with the rate of inflation each year from there.
His idea got one council member particularly distressed at a recent meeting. Councilman Victor Gomez responded to Alejo’s proposal at a late December public gathering by pronouncing that the idea would hurt the Hollister business he owns – Papa Murphy’s Take ‘N’ Bake Pizza – and that he wants the council to oppose the idea for a minimum wage increase.
His concern – and at least two council members appear to support him – is that businesses such as his will be forced to fire workers, causing a negative impact on the economy.
Gomez during the meeting cited that there had been around 45,000 jobs lost statewide the last time California increased the minimum wage, in January 2008.
“This is a time when I want to increase business,” Gomez said from the dais. “When you have your costs down, you’re able to hire more people.
“I’ve been able to hire more people and I’ve been happy about that. If minimum wage goes up, there’s going to be more high school students and more college students with no money, because I will be firing people. Obviously, I’m very passionate about this issue.”
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Gomez went on to point out that the California Chamber of Commerce and San Benito County Chamber of Commerce & Visitors Bureau had planned to consider opposition to the idea. Since then, the state chamber has taken the official stance to oppose the idea.
“I don’t know if it’s too early, but my desire would be for the Hollister City Council to put together a resolution to AB10 [Alejo’s bill] because of the impacts it will have on our small businesses,” he said.
He added how the nation and county face troubling unemployment numbers and remarked, regarding Alejo, “It didn’t really surprise me when I found out who it came from.”
The Pinnacle exchanged voicemails with Gomez but he couldn’t be reached before press time. Alejo also couldn’t be reached before press time.
But Alejo has said he believes it would result in an economic boost because those affected would have more money to spend.
“The majority of minimum wage workers are in the service industry,” he said in a statement. “These are not the jobs shipped overseas. The fact is that higher minimum wages tend to reduce worker turnover which can save the employer money on hiring and training.”
He went on: “They should be ensured a minimum cost of living increase to maintain basic purchasing power.”
Other city council members, however, also have expressed opposition to Alejo’s belief.
Mayor Pauline Valdivia at the same council meeting cited how her Hollister employer, Jovenes de Antano, where she is executive director, could see a negative impact as well. She requested that council members get more information before they make a decision on such a resolution, which has not been officially proposed as of yet.
“I’d rather have people working than not work at all,” she said.
Councilman Ray Friend this week indicated he would support opposition to Alejo’s idea. He said he understands that people on minimum wage could “use the money” but also added how, “Everybody could use a raise.”
“We’re trying to get people to hire people and trying to get small businesses to stay in business,” he said. “I’m concerned. I think the timing is not right.”
Friend noted how it might be a better idea a year from now or “when things are good.”
Another councilman who was reached, Robert Scattini, said he would rather not comment until a resolution comes forward.
“When he does do it, I’ll definitely have a public comment,” he said.
Look back for more on this story.
Sampling of some other states’ minimum wages:
Oregon: $8.50
Oklahoma: $7.25
New York: $7.25
New Mexico: $7.50
Nevada: $8.25
Minnesota: $6.15
Washington, D.C.: $8.25
Georgia: $5.15
