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Should minimum wage be increased?

By Rosa Duarte, Reporter, RDuarte@wfmz.com
Published On: Dec 06 2013 03:43:43 PM CST

Business experts say higher minumum wage may not help

While fast food workers make their own demands for $15 an hour, lawmakers in both Harrisburg and Washington D.C. agree that it's time for a change and are considering legislation that would increase the minimum wage to $10.10 an hour.

However not everyone agrees, especially small business owners.

“Business owners, especially small business owners, need to worry about every penny. So when you're telling them 'I'm going to raise your labor costs by three dollars an hour' regardless of what the good intention is behind that...you're basically mandating a losing proposition,” said Joseph Facciano, a small business owner and business coach in the Lehigh Valley.

Facciano adds the increase in wages would be paid for in either one of three ways; Lowering hours or laying people off, decreasing value to customers like providing smaller portions, or by raising costs.

As for the demands from fast food workers for companies like McDonald's to raise its wages, “McDonald's are franchises, it's not big McDonald's multi-billion dollar corporation we're dealing with here, it's small business owners who own McDonald's franchises,” said Facciano.

If passed, the minimum wage would be increased incrementally over the next three years.

The last time the minimum wage was raised was in 2009 when it rose from 6.55 to 7.25 an hour.