Cleaning & Maintenance Management Online

Minimum wage hike could be bad for business

February 27, 2012

NEW YORK — Increasing the current minimum wage is raising questions of survival for many smaller cleaning contractors, according to the New York Times.

State Assembly Speaker Sheldon Silver and Mayor Michael Bloomberg have announced the idea of raising that state''s minimum wage from $7.25 an hour to $8.50, the article stated.

According to the article, many owners fear that charging more will cause them to lose customers, a concern that is shared by many other business owners in fiercely competitive, low-skilled businesses like fast-food restaurants and some manufacturing.

"There''s a need to fill positions that don’t require a specific skill," said Charles Cestaro, owner of Servco Industries.

"When the labor rate moves up, what happens to those people who don''t have a skill? When the day comes when the labor rate is $11, where I can buy a more skilled labor force because I was forced to pay that wage, what''s going to happen to those people who don’t have a skill set?" Cestaro added.

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