Steve Balich Editor note: Companies will eliminate positions be automation or raise prices if government forces wages up instead of merit and profits.
Illinois manufacturer stands against federal minimum wage proposal
WAUCONDA – A Chicago suburban manufacturer says the Democrat proposal in Congress requiring a federal minimum wage of $15 per hour would reverse the progress her company and her employees have made in the past couple of years.
HM Manufacturing President Nicole Wolter says in an op-ed published in the Daily Herald Wednesday that “as a small business owner, I have to point out the truth — this bill will bring ruin, not prosperity, to the country.”
Thanks to sound economic policy — namely the Tax Cuts and Jobs Act — my manufacturing business was able to give bonuses, raises and comprehensive healthcare coverage to all our employees. We were also able to use the tax savings to purchase more equipment and hire more people.
These gains have helped my business, my employees and their families — not to mention the ripple effect it’s had on the local economy. Similar stories have played out at small businesses around the country. All because businesses have more money in their pockets.
But much of this progress can be undone if the federal government dictates a far-reaching $15 minimum wage. I already pay my employees good wages that surpass the minimum wage level being considered because of their skill and experience. The problem becomes when wages are no longer pegged to merit. In this case, that means businesses are forced to pay unskilled, less-experienced workers $15 an hour — an issue that is exacerbated for the manufacturing sector, where it’s already challenging to stay competitive in the global market.
More about Ms. Wolter’s manufacturing business and her challenges to maintain an Illinois business can be found at Technology & Manufacturing Association’s website. Ms. Wolter also serves on TMA’s Board of Directors.
