Some Oregon workers can expect to receive a little more in their paychecks this year. The state’s minimum wage increased from $6.90 to $7.05 starting Jan. 1. This makes it the fourth-highest minimum wage in the country, after Washington’s $7.16 minimum wage, Alaska’s $7.15 and Connecticut’s $7.10.
Many minimum wage earners on campus are student workers.
The University’s Business Affairs Payroll Manager, Judith Duff, said the department increased about 1,800 students’ salaries on Jan. 1. She said there are about 3,500 students who work on-campus each year.
But students had mixed feelings about the new wage.
Senior Paul Manokore said the increase was good news.
“In a good way, it will really improve my budget,” Manokore said.
He was quick to add, however, that the positive effects depend on whether or not there would be increases in the price of commodities.
“If they raise (minimum wage), they have to subsidize it with something,” he said. “If wages go up, prices go up.”
Junior Kimberly Schwarm, who works two part-time jobs, said she is excited to get more money, but feels the increase will not make much of a difference.
“I’m kind of frustrated because tuition is rising,” Schwarm said. “The 15 cents isn’t going to make up for the $200 I have to pay.”
She said the last wage increase hardly made a difference because regular consumer goods seemed to get more expensive.
“It makes me wonder why we have one of the highest minimum wages and we’re one of the poorest states and one of the hungriest,” she said.
Departments around campus had to readjust their payrolls for the new wage and are still trying to determine what the repercussions of the increase might be.
University bookstore Human Resources Manager Natalie Eggert said it is too early to state how much the wage increase would cost them financially.
“The increase this time isn’t going to be as significant as the last time,” Eggert said, referring to the 2003 wage rise to $6.90 after it stayed at $6.50 since 1999.
While the increase comes during a period of challenging economic times in the state, Eggert said she doesn’t believe it will affect the bookstore negatively.
“We’re pretty strong financially, and so I don’t think it will have a big impact,” she said. She added that it is unlikely the store would hire fewer students, but there may be some areas where the business might have to try to cut costs, such as shipping charges.
According to an article on the Oregon Employment Department Web site, http://www.qualityinfo.org, some consequences of higher wages may be decreased employment is some sectors, reductions in raises or workers fringe benefits, or higher consumer prices.
“Minimum wage affects mostly retail and services that compete locally, so costs can be passed on to consumers,” said Brian Rooney, the Oregon Employment Department’s regional economist for Lane County. He added that some agricultural services might hurt more from labor cost increases because they compete internationally.
Economics will determine if minimum wage will increase next year. According to Oregon’s Bureau of Labor and Industries Web site at http://www.boli.state.or.us, starting this year, the commissioner of the Bureau of Labor and Industries must calculate annual adjustments to the wage for the following year, based on any increases to the U.S. City Average Consumer Index for All Urban Consumers for All Items.