By Cathy Spaulding
An 70-cent per hour increase in the state minimum wage, which takes effect today, could boost worker’s purchasing power, a state official says.
Others see upsides and downsides to the increase.
The state minimum wage rises from $6.55 to $7.25 per hour today, the third increase in two years.
Oklahoma State Labor Commissioner Lloyd Fields says the increase “will improve the purchasing power and quality of life for a large number of Oklahomans.”
“That will not feed a family of two,” said David Archibald, executive director of Muskogee County Community Action. “It doesn’t cover much of anything. That’s why we’re giving away school supplies this year.”
Arrowhead Mall Marketing Director Penny Kampf said the minimum wage increase is “for some a blessing and others a hindrance.”
“We have seen two increases over the past two years, and for small businesses, we can see how that big of a jump can hurt.”
“We are mindful that for some of our mom and pop stores, that’s an added operational cost,” she said. “And in this economy, that’s a hard pill to take. If this would have happened in a stronger economy, people would say it’s a good thing.”
Richard Funk, owner of Pizza Inn at 1107 N. York St., said he has had to raise prices to make up for past wage increases. The minimum wage rose 70 cents to $5.85 in 2007 and another 70 cents to $6.55 in 2008.
“You have to pass the price of your product onto customers,” Funk said. “It’s a circle.”
Funk said does not plan to raise prices with this increase.
“We’ll just cut corners, watch our hours,” he said.”
“The minimum wage increase will typically affect food service and retail sectors,” said Marie Seabolt, director of marketing and research for Muskogee Development, “Luckily for us Okies, Muskogee is the 15th least expensive city in the nation, according to the latest ACCRA cost of living survey. The increase in minimum wage means employees in these sectors can afford to purchase more, increasing sales tax collections for the city. About 5,500 Muskogee area residents work in the food services and retail sectors, averaging about $7.17 an hour.”
Funk said he has not seen the reported increased purchasing power affect his business.
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