Congress to raise minimum wage

Anne Heuer

Recent nods of approval from both houses of Congress suggest the bill proposing a $1 increase in the national minimum wage soon will be implemented, but some Ames area business owners do not think it will have much effect on the community.

Two identical bills suggested by Sen. Ted Kennedy (D-Mass.), and House Minority Whip David Bonior, (D-Mich.), are expected to add 50 cents by Sept. 1 and an additional 50 cents by Jan. 1. The current national minimum wage is $5.15 per hour, which means the proposal could eventually increase it to $6.15 per hour.

Because of low unemployment rates in Iowa and Ames, David Maahs, executive director of the chamber of commerce, said area businesses are not concerned with the effect on the business community.

“Most businesses are paying more than minimum currently to attract labor,” he said. “It shouldn’t impact their businesses.”

Maahs said the state of Iowa has seen unemployment rates as low as three percent in the last few years.

Nick Vanevery, manager of Jimmy John’s, 108 Hayward Ave., said he pays his employees $5.50 to $6 an hour, and he would “most definitely” pay above minimum wage regardless of the increase.

Lynette Seymour, general manager of the University Book Store, ISU Memorial Union, also supports the increase.

“In the economic situation that the United States is in right now, it may be something that could be handled by businesses,” she said.

Seymour said most positions at the bookstore receive above minimum wage, and wages increase as skills develop.

However, Anna Johnson, manager of Taco Time, 511 Lincoln Way, has a different opinion of the increase.

“I think it’s horrible,” she said. “[It will result in] poorer service for our customers because there would be fewer people on a shift.”

Beginning pay at Taco Time depends on the employee’s age. Minimum wage is paid to 15-year-olds; high school students are paid $5.50 an hour; and college students receive $6 an hour.

Johnson believes employees should earn more as they gain experience, and if minimum wage increases, employees won’t see as much gain in their pay.

“If we had to make everybody make $6.15, it would be like paying them more than they’re worth,” she said.