Raising The Minimum Wage in Oregon

The minimum wage in Oregon has been steadily going up in the past few years. This is because of a bill passed by the Legislature in 2016, Senate Bill 1532. It states that the minimum wage will increase steadily until 2023 (Theen, Andrew. “6 things to know about Oregon’s new minimum wage law.” The Oregonian/OregonLive). The minimum wage in the Metropolitan area is currently $12, and is set to be $14.75 by the end of the bill’s plan. In non-urban counties, the wage is expected to raise to $12.50. In all other counties, it will raise to $13.50. The difference in wages between counties is explained by the differences in cost of living. According to Jo Ann Hardesty, Portland City Council member and activist, “The cost of living is much higher in the Metro area than it is in other parts of the state.” The effects of the minimum wage increase will be felt by many different people, from employees making minimum wage to small business owners paying it.

 

Many employees, especially ones making the minimum wage, are happy with the increase. Esther Mann, a seventeen-year-old Burgerville employee, is very supportive of the bill. “There are so many minimum wage workers who are below the poverty line and who struggle with housing, among other important things,” she said when asked her opinion of the bill. “If the minimum wage were to rise, I think it would be really wise.” According to Jo Ann Hardesty, Portland City Council member, “In order to afford a two-bedroom apartment, you have to make $24 an hour.” Portland is an expensive place to live, and many think the minimum wage should rise to reflect that.

 

Not everyone is on board with the increase, however. Some are worried that business owners, especially smaller businesses, will not be able to keep paying employees. “I think it’s a little dangerous to play this game,” says Marissa Crumbine, a Chase Bank employee making higher than minimum wage, “I think that for the smaller companies it’s going to be an issue just trying to catch up.” She stated that the increase unfortunately harms small businesses and makes it harder for them to compete with large corporations. “I believe a city or a county should support small businesses and not make the field unfair for them.” Lauren Farina, owner of Fatima Bakery on Hawthorne, supports the bill, but is feeling its negative effects. “Forced growth is always really hard,” she said, “I want to pay everyone more…it’s just like, as the employer, you’ve got to be scrappy to grow it.” She specifically mentioned food service and the pressures of keeping food cheap while trying to increase employee pay. “A good example of how we’re offsetting a lot of these things is by raising our prices. The macarons used to be two dollars, now they’re two-fifty. I didn’t want to do that! But now I have to.”

 

The implementation itself of the bill has garnered some criticism from those it affects. The bill was first conceived as a ballot measure back in 2010, attempting to change the minimum wage to $15 an hour. This was considered by many to be a “living wage”, or money that allowed them to afford housing and sustain themselves. The measure was accepted in Washington, but not in Oregon. The Oregon Legislature created a compromise with Senate Bill 1532- the minimum wage would rise over the course of seven years until it reached $14.75. Some believe this compromise strays too far from the original purpose of the ballot. “What the people wanted was fifteen dollars an hour,” Jo Ann Hardesty said, “2023 is a long time…and $14.75, that’s still not fifteen.” On the other hand, some believe the speed is just fine, or too fast, even. Lauren Farina mentioned the struggle for business owners to stay on top of prices. “It puts a lot of pressure on employers to make sure they can give their employees things…for a small business it can be really tricky.” The issue is currently contentious, and neither side is completely happy with the bill.