NFIB quotes research that shows $76-billion impact on Michigan economy
LANSING (May 21, 2018) – The state’s leading small business organization, NFIB, responded today to a ballot proposal that would hike Michigan’s minimum wage calling it a “wet blanket” on Michigan’s economic progress.
“As reported in a study of this proposal by the NFIB Research Center, Michigan will lose 183,000 jobs over the next ten years and there will be a cumulative reduction in Michigan real output of over $76 billion,” said NFIB’s Michigan State Director, Charlie Owens. “Sixty-two percent of the forecast job losses are jobs that would have been in the small business sector of the economy.”
A group calling itself “One Fair Wage” submitted signatures today that would put a mandated minimum wage hike before state voters in November 2018. The minimum wage mandate would raise the minimum wage in Michigan to $12 an hour by 2022 and eliminate the tip credit for restaurant workers. Michigan’s current minimum wage was raised to $9.25 an hour in January of this year.
“The group pushing this proposal is financed primarily by out-of-state interests having received the bulk of their funding from labor unions or labor union front groups located outside of Michigan,” said Owens.
Under the Michigan Constitution, any citizen, or group of citizens, can initiate a law by collecting the required number of signatures on a petition for that purpose. If enough signatures are gathered and approved by the Board of State Canvassers, the proposal is introduced into the state legislature as a bill. The legislature has 40 days to act on the proposal. If they pass the proposal it becomes law and does not go on the statewide ballot. If they take no action, or the proposal fails to pass, then it appears on the November 2018 statewide ballot.
Owens said that a survey of small business owners who are members of NFIB showed strong support for intervention by the legislature to keep the proposal off the ballot. “Michigan must act to keep this misguided proposal off the ballot to prevent the state from moving backward into the mess it was in just eight years ago,” said Owens. “If lawmakers allow this proposal to go to the ballot, and it is passed by the voters, a three-fourths super-majority of the Legislature would be required to change the law and Michigan will then be stuck with one of the most stringent minimum wage employer mandates in the country.”
Owens also pointed out that in the state of Maine, restaurant workers were successful in persuading the legislature to repeal a similar proposal because it ended up being a pay cut for most tipped employees in the foodservice industry. “This group wants everyone to believe they are speaking for workers, but their proposal ended up being a pay cut for most tipped food service workers in Maine and the same will happen here”, said Owens.
Owens said NFIB will be working with other job provider groups in Michigan to defeat the ballot proposal.
A copy of the NFIB Research Center study on the proposal can be downloaded HERE.
For more information contact:
Charlie Owens, NFIB’s Michigan State Director
Office: 517-485-3409
Follow Charlie on Twitter @OwensNFIB
