The Baker County press. (Baker City, Ore.) 2014-current, February 26, 2016, Image 3

The Baker County press., February 26, 2016, Page 3, Image 3

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Newspaper Page TextTHE BAKER COUNTY PRESS — 3 FRIDAY, FEBRUARY 26, 2016 Business & Ag Local businesses speak out about minimum wage hike BY TODD ARRIOLA Todd@TheBakerCountyPress.com A sample of local business owners and operators expressed their opinions recently, regard- ing the potential effects of controversial Senate Bill 1532, which declares an emergency, and raises State minimum wages via a three-tiered, statewide/ urban/rural system, begin- ning on July 1 of this year. The bill was passed by the Senate on Thursday, Febru- ary 11, and a week later, by the House, on February 18, and, will take effect, once signed by Governor Kate Brown. The bill, introduced by the Oregon Senate on Feb- ruary 1, amends Oregon Revised Statutes (ORS) 653.025, the minimum wage rate, with language covering each ﬁscal year through 2023, varying also according to inflation rates annually after that. Section 1 of ORS 653.025 was amended to include the following rates statewide: from July 1, 2016, to June 30, 2017, $9.75; from July 1, 2017, to June 30, 2018, $10.25; from July 1, 2018, to June 30, 2019, $10.75; from July 1, 2019, to June 30, 2020, $11.25; from July 1, 2020, to June 30, 2021, $12.00; from July 1, 2021, to June 30, 2022, $12.75; from July 1, 2022, to June 30, 2023, $13.50; and, after June 30, 2023, begin- ning July 1, a rate adjusted annually for inflation. Exceptions to the state- wide rates are included in two categories: metropoli- tan districts, and, nonurban counties. Metropolitan dis- tricts include the following rates: from July 1, 2016, to June 30, 2017, $9.75; from July 1, 2017, to June 30, 2018, 11.25; from July 1, 2018, to June 30, 2019, $12.00; from July 1, 2019, to June 30, 2020, $12.50; from July 1, 2020, to June 30, 2021, $13.25; from July 1, 2021, to June 30, 2022, $14.00; from July 1, 2022, to June 30, 2023, $14.75; and, after June 30, 2023, beginning July 1, no less than $1.25 more than the yearly determined minimum wage, adjusted annually for inflation. Nonurban counties include the following rates: from July 1, 2016, to June 30, 2017, $9.50; from July 1, 2017, to June 30, 2018, $10; from July 1, 2018, to June 30, 2019, $10.50; from July 1, 2019, to June 30, 2020, $11.00; from July 1, 2020, to June 30, 2021, $11.50; from July 1, 2021, to June 30, 2022, $12.00; from July 1, 2022, to June 30, 2023, $12.50; and, after June 30, 2023, beginning July 1, no less than $1.00 per hour less than the yearly determined minimum wage, adjusted annually for inflation. The following are considered “nonurban counties” according to the bill: Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Uma- tilla, Union, Wallowa, and Wheeler counties. Dr. Sheryl Blankenship, co-owner of Baker Vision Clinic, at 2150 3rd Street, with Dr. Leslie Elms, said, “I worry greatly for our State, in that new busi- nesses will not look at our State with this coming in, because it’s going to be very difﬁcult, particularly for a new business to start up, so that is very upset- ting. Existing business- es—I’ve already had some tell me, they don’t know if they will be able to stay in business, with this change. And, certainly, in my busi- ness, we’re not at mini- mum wage, what we pay, but, it certainly will require restructuring. I think it’s going to change for all businesses, and, what they’re able to provide, as a product, and, the end cost of that product, because, for them, the businesses that can continue, are go- ing to have to increase the prices for their products. “My concern is (indi- rectly), looking more at the welfare of our City, our County, our State, and, I don’t see anything positive there. I think we are going to pay for this dearly. I wish our Governor would look further. I understand what they’re trying to do—you know, get people out of poverty—but, what they’re going to do is, make it difﬁcult for every- one.” She said the clinic em- ploys 18 people, with the majority working ﬁve-day work weeks, and a few working four-day work weeks. Marilyn Logsdon, co- owner of York’s Cov- ered Wagon Grocery & Sporting Goods, at 1549 Campbell Street, with her husband, Kevin, said, “I’m not impressed with it. That’s going to make everything more expen- sive, so in fact are people really getting a raise? Not really, because now the cost of living is going to go up. That’s going to really affect us, although most of our (York’s) people are getting paid more than that, other than when they ﬁrst start. But still that’s pretty nuts. It’s going to make it challenging. The other thing that bothers me, is it was never put to a (state- wide) vote.” She said it’s an idea that would possibly work better for the western, larger cit- ies. York’s employs nine people part-time, she said. Tom Kulog, co-owner of Betty’s Books, at 1813 Main Street, with his wife, Carolyn, said, “There is a problem that needs to be dealt with, but, I’m not sure it’s the right way.” The Kulogs employ several people, part-time, he said. Human Resources Manager Sandi Fuller, of Marvin Wood Products, at 3665 17th Street, said, “If it passes as it’s listed, like we’ve been looking at, and watching it—July 1, 2016, it will go to $9.50—it’s in- cremental, which is good. It’s lower in the rural areas, which is also good. Our starting wage here is $13 an hour (currently), for our new hires, so, we’re in good shape, as far as being in compliance, and, not having it be a real shock to us...I believe the majority of companies already pay minimum wage, and better, so, there may not be as much as an impact, as what they may be hoping for ... I’d say it’s fairly neutral for us, at this time.” She said that Marvin Wood Products employs around 150 people, mostly full-time, some part-time, and, temporary workers, during the summer. Jodie Hausotter, who co- owns Natural Structures, at 2005 10th Street, with her husband, Ted, and, his parents, Albert and Grace Hausotter, said, “We start (new hires) higher than that (minimum wage).” Ted said, “As far as direct impact, this isn’t a direct impact for our company. Where it directly impacts us is ... competition ...We have experienced this in the past ... Number two (as an example), the bottled water that gets delivered--the people delivering bottled water. They have to raise their price because of it... The pizzas we have deliv- ered (another example)... It’s putting pressure on all those wage scales...” The Hausotters employ 61 people, Jodie said. Tyler Brown, Manager at Barley Brown’s Brew Pub, at 2190 Main Street, and, Baker City Brewing Com- pany (Barley’s Taphouse), at 2200 Main Street, said, “My thoughts, in general, are more about the Gov- ernor (Kate Brown), and, the legislature in Oregon. I have zero conﬁdence in them, and with the bad de- cisions, in general they’re making.” He cited voter-passed Measure 91, the Control, Regulation, and Taxation of Marijuana and Industrial Hemp Act, as an example. “But, then they gave Coun- ties that didn’t vote for it, the option of backing out of it ... They’re saying, ‘Hey, you guys didn’t vote for it, and, we still want to be friendly with you (the Counties with a majority in opposition),’ so, you don’t have to have it,’ just because their bill says so... They’re kind of going with that same trend, of waffling around, saying, ‘Hey, we’re going to do a minimum wage bill, and, try and head off a voter-mandated minimum wage.’ I don’t understand the rationale behind treat- ing the State as no longer one State, but, as portions of the State (giving an example of a fast-food restaurant, selling items for the same prices here, and, paying workers the same rates, as one would in Portland)...” Brown said that of the 60 employees (between Barley Brown’s Brew Pub, Baker City Brewing Company, and the Sumpter Junction, all managed by the Browns’ company, Windmill Enterprises, Inc.), very few are actu- ally paid solely minimum wage, because tip income, which is taxable, and causes what an employee is paid to be much higher than the base wage, should be taken into account, one of the points Brown stressed time and again, with legislators. “What I’ve told (Repre- sentatives) Cliff Bentz, and Ted Ferrioli in the letter I wrote to the Governor, is looking at that (bill) now, if we weren’t already in the restaurant business in eastern Oregon, there’s absolutely no way we would go into it now. You can go 70 miles. You can cross the Idaho border, and your business plan is going to look entirely different. I guess looking forward, what we’ll see more of, and what’s very popular around Portland, is the restaurants where you walk in the door, you order your food at a counter, and they give you a number, and yell out a number (as opposed to more customer service-oriented, sit-down restaurants, he said). It eliminates server jobs... There’s no chance of (res- taurant) prices ever going down,” he said, stating that an increase in costs is ultimately passed on to the consumer. Stephanie Benson, co- owner of The Little Bagel Shop, at 1780 Main Street, with her husband, Will, said, “I just don’t believe it’s going to help anybody, because, the more money they make, the more taxes they’ll pay, so, it’s actu- ally going to give them no more take-home pay. It’s going to affect small business, more so, than anything, and, that’s the biggest detriment to most people. Some of these businesses are just waiting to see what happens.” She expressed confusion as to why rates would be dif- ferent across the State. “I honestly think that Baker City is the same price as Portland (retail goods, for example), so, I don’t understand why it’s going to get a higher minimum wage than eastern Oregon. I have family that lives in the Pearl District, and, their Safeway flier is the same as ours—exactly. We are paying prices the Pearl District is paying,” she said. The Bensons employ four people part-time, she said. Jacki Adams, owner of The Sycamore Tree, at 2108 Main Street, said, “I realize that the cost of living has gone up, and, it needs to be addressed, but, that’s really drastic. Over- all, I think people will see higher prices. I also know that it’s hard to live on ten dollars an hour. We’ve been established for 28 years, and, it’s not going to be easy for us, but, for somebody who’s already struggling, that could be detrimental.” Adams said she employs four people, part-time cur- rently, and up to eight. “One thing drives another; you might be making more money, but, the cost of goods is going to go up, as well. It’s kind of a balancing act. I know that it will be harder, as a small business person, to make ends meet, or, to try to make money. It might be discouraging for people who are thinking about starting a business,” she said. Josh Decarl, co-owner of the Corner Brick Bar & Grill, at 1840 Main Street, with his wife, Debra Fisher, said, “I think it’s a really good idea, but, I think it’s going to hurt businesses in Baker, unless local consumers are on board, and, agree to pay extra for eating out, and, other things. That’s what it comes down to.” Decarl and Fisher em- ploy from eight to twelve people, part-time, he said. — Weekly Hay Report — Friday, February 19, 2016 — Eastern Oregon Prices trended generally steady compared to week ago prices. Many producers have decided to hold on to their hay for now, in hopes for higher prices. Many hay producers are sold out for the year. Tons Price Range Wtd Avg Alfalfa —Large Square Premium 300 125.00-125.00 125.00 Alfalfa —Large Square Good 40 120.00-120.00 120.00 Alfalfa / Orchard Mix —Small Square Premium 25 190.00-195.00 192.00 Timothy Grass—Small Square Premium 3 195.00-195.00 195.00 Meadow Grass—Small Square Good 2 150.00-150.00 150.00 USDA Market News Service—AMS.USDA.gov — Cattle Market Report — Wednesday, February 17, 2016 Vale, Oregon Cattle sold through the auction: 1160 Steer Calves 300-400# Bulk 199.00 - 226.00 Top 235.00 400-500# Bulk 198.00 - 223.00 Top 231.00 500-600# Bulk 167.00 - 194.00 Top 197.50 Heifer Calves 300-400# Bulk 191.00 - 214.00 Top 220.00 400-500# Bulk 179.00 - 193.00 Top 202.00 500-600# Bulk 147.00 - 168.00 Top 171.50 Yearling Steers 600-700# Bulk 153.00 - 175.00 Top 177.25 700-800# Bulk 127.00 - 150.00 Top 151.75 800-900# Bulk 134.00 - 141.00 Top 142.00 900-1,000# Bulk N/A Top N/A Yearling Heifers 600-700# Bulk 133.00 - 144.00 Top 145.00 700-800# Bulk 129.00 - 139.00 Top 142.00 800-900# Bulk 112.00 - 126.00 Top 127.50 900-1,000# Bulk 97.00 - 111.00 Top 113.00 Thin Shelly Cows 41.00 - 57.00 Butcher Cows 61.00 - 69.00 Butcher Bulls 69.00 - 81.00 Stock Cows Yng. 1275.00 - 1500.00 Younger Hfrts. N/A Stock Cows Older. - 985.00 - 1225.00 ProducersLivestock.com 541-473-3136 — Log Price Report — Price per 1,000 board feet: Northeast Oregon Currently the local log market is flooded with ﬁre salvage logs. The log buyer for Malheur Lumber Co. stated they have all the logs they need under contract and are not accepting any new purchases. BCC/LLC of La Grande has receive so many burned ﬁre salvage logs they are no longer accepting logs at the La Grande log yard. Any additional pine logs have to be delivered to the Elgin Log yard cut in plywood lengths and to a 8 inch top. For these pine logs cut in plywood lengths, BCC is offering $280.00/mbf. They are also paying $410.00/ mbf for Doug Fir & Western Larch. For White Fir they are ofﬁng $310.00/mbf. At the Pilot Rock Saw Mill BCC is ofﬁng $360.00/mbf for a 12 to 15 inch top, for 16 to 19 inch top $400.00/ mbf & ofﬁng $425.00/mbf for 20 inch plus top Courtesy of Arvid Andersen, Andersen Forestry Consulting — Precious Metals Report — Price per ounce, USD Gold: $1,239.10 Silver: $15.29 Platinum: $936.85 Palladium: $488.05 Bloomberg.com — Ag Commodities — Corn: $364.50/bu/USD Wheat: $451.25/bu/USD Soybeans: $872.25/bu/USD Oats: $187.00 bu/USD Rough Rice: $10.66/cwt/USD Canola: $464.70 CAD/mwt Live Cattle: $136.15/lb./USD Feeder Cattle: $157.95/lb./USD Lean Hogs: $71.48/lb./USD Bloomberg.com