Failor warns against minimum wage hike
Des Moines (January 14, 2014) – Kristin Failor, State Director for the National Federation of Independent Business (NFIB) issued the following statement this morning in reaction to Governor Terry Branstad’s annual State of the State Address:
“The Governor and lawmakers have worked well together and the tax reform that they set in motion last year should provide some relief. We like the Governor’s emphasis this year on work force development because despite the slow economy it’s difficult for small many small businesses to find qualified job candidates.
“We expect a push this year from the labor unions to raise the minimum wage, and that would undermine our position. Raising the cost of labor when profits are flat and other costs are rising is a blueprint for disaster.
“Less than 3 percent of Iowans currently earn the minimum wage, according to the federal government, and they are typically kids and young people who need those entry-level jobs to gain experience and build their skills for the workforce. Raising the minimum wage would cause small businesses – a majority of the employers in Iowa – to pull back. They’ll automatic lower level functions, cut positions and reduce hours for employees. The people on the lowest rungs of the ladder will be hit hardest.”
To learn more about NFIB, please visit www.nfib.com.