Some owners back hike

By PRADNYA JOSHI
Staff Writer
December 7, 2005

Richard Klein says he knows that many employees wouldn't be as committed to their jobs if they were only making $5.15 an hour. So despite being a small-business owner, he is actually happy to hear that the State Senate has voted to increase the wage to $6 an hour next year and to $7.15 an hour by 2007.

"It's long overdue," said Klein, co-owner of Book Revue bookstore in Huntington. "The minimum wage is ridiculous; it's not fair."

Surprisingly, that too was the reaction of several other business owners in New York City and Long Island, who say they've long had to pay more than the minimum to keep good workers.

"At the end of the day, it's something that will bring more money into the community, more money into the store, more money into the Web site," said Rob Yeganeh, owner of Love My Shoes, which has six stores in Queens and Long Island.

But others say companies that hire by the thousands will be more reluctant to hire because of the higher costs, and those costs will be passed onto consumers.

Duane Reade, for instance, called the move counterproductive.

"Forcing New York business to absorb a sudden 17 percent increase in minimum wages, while surrounding states competing do not, is unfair and will not do anything other than reduce jobs for those in the New York work force," the retailer said in a statement.

"The more you have to pay your employees, the more you have to charge for your products," said J. Craig Shearman, spokesman for the National Retail Federation, which represents 1.6 million stores and chain restaurants.

With unemployment on Long Island at 3.7 percent, companies simply cannot get workers by paying $5.15 an hour, said Pearl Kamer, chief economist for the Long Island Association.

In the city, the wage increase will help support the low-income workers and their families, experts said.

"Most employers, certainly in New York City, are paying in excess of the minimum wage," said Kathryn Wylde, president of the Partnership for New York City, a business group that supports the increase.

And even though some small businesses say that it takes a bite out of their costs, companies will attract and retain workers in the long run, she said.