A4 • HERMISTONHERALD.COM
WEDNESDAY, JANUARY 20, 2016
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Business owners worry about wage hike
By JADE McDOWELL
Staff Writer
If Oregon’s minimum
wage rises to $15 an hour,
more than half of Umatilla
County workers are in for a
raise.
A 2015 report by econo-
mist Dallas Fridley estimat-
ed 52 percent of Umatilla
County’s workforce cur-
rently earns less than that,
as well as 43 percent of
Morrow County workers.
While those workers
might relish the thought of
a jump in pay, many busi-
ness owners are worried
about how they will pay for
it.
Sam Jackson, owner
of Crazy Mike’s Video in
Hermiston, said proposals
to raise minimum wage
from $9.25 an hour to
$13.50 or $15 could mean
she would have to “kiss the
business goodbye.”
“I would probably have
no employees other than
myself,” she said.
Jackson currently has
two employees in addition
to some help from work-
ers in a job training pro-
gram. If minimum wage
skyrocketed, she said, so
would her costs, and she
would have to cut business
hours and raise prices to
compensate, which would
likely result in a decrease
in customers.
According to Fridley’s
report, nearly 90 percent of
workers in the hospitality
industry in Umatilla Coun-
ty make less than $15 an
hour. Vijay Patel, owner of
the A-1 Hospitality Group
that manages several area
hotels, said a minimum
wage hike would mean
increased room prices and
layoffs.
A business paying 25
employees $9.25 an hour
can only afford to pay 16
employees $15 an hour, he
said.
If prices for hotels, gas
and food are cheaper across
the Washington border, Pa-
tel said, it could mean los-
ing business to the Tri-Cit-
ies and Walla Walla.
“If someone is staying in
Hermiston, they might say,
‘We might as well drive
another half hour and get a
better rate,’” he said.
One idea being À oated
by the legislature and Gov.
Kate Brown is to divide the
state into regions.
According to data com-
piled by the National Low
Income Housing Coali-
tion, in Umatilla County a
renter would need to make
$10.67 an hour at 40 hours
a week to afford to live in
a one-bedroom apartment
at the fair market price of
$555 a month. They would
need to make $14.25 an
hour to afford a two-bed-
room apartment at $741 a
month.
The coalition estimates
a worker could afford a
one-bedroom
apartment
in Morrow County mak-
ing $9.13 an hour and a
two-bedroom apartment at
$12.37 an hour.
In Multnomah, Wash-
ington and Clackamas
counties the same worker
would need to make $15.25
an hour to afford a one-bed-
room apartment and $18.15
to afford the average
two-bedroom apartment.
Only 6.9 percent of
Umatilla County workers
made minimum wage, ac-
cording to data from the
Oregon (mployment De-
partment. But even em-
ployers who pay more than
minimum wage expect that
a wage hike will affect their
bottom line.
Joseph Franell, C(O of
(astern Oregon Telecom,
said he pays his employ-
ees — all skilled laborers
earning more than mini-
mum wage — according to
telecommunications indus-
try standards. He said he
didn’t see how an employ-
ee making $16 or $17 an
hour would be content with
their wages if for unskilled
laborers started making $15
an hour.
“Suddenly you’re say-
ing someone 16 years old
with no work experience
is worth $15 an hour,” he
said. “I’m absolutely con¿ -
dent there will be pressure
to raise wages higher.”
To compensate his em-
ployees fairly for their level
of skill and experience, he
would have to invest less in
the company’s future, cut
employees or raise the cost
of service.
“Nothing’s free,” he
said. “If you raise minimum
wage by 50 percent, some-
one has to pay for that.”
Lou Lyons, owner of (l-
mer’s Irrigation & Supplies,
said a wage hike would be
detrimental to farmers, who
are some of his biggest cus-
tomers.
“If things get tight with
the farmers ... they will
spend less money,” he said.
Proponents of the wage
hike argue that it will pay
for itself because workers
who suddenly have a big-
ger paycheck will respond
by spending more money at
local businesses. But Lyons
said many minimum wage
workers won’t run out and
buy irrigation equipment
with their extra cash.
Some businesses that
hire mostly unskilled work-
ers have taken the initiative
to raise wages on their own
in recent years.
Wal-Mart made head-
lines a year ago when it
announced it was raising its
internal minimum wage to
$9 an hour in 2015 and $10
an hour in February 2016.
The move made less of an
impact in Oregon, where
the minimum wage was
already $9.25 an hour, but
workers who weren’t af-
fected by the 2015 increase
will see their pay bumped
up to at least $10 an hour
next month.
the Oregon Health Insurance
Marketplace.
Financial help is available
for many people if they enroll
through HealthCare.gov. De-
pending on their income, they
may qualify for tax credits to
help pay their monthly pre-
mium and help with out-of-
pocket costs such as deduct-
ibles and co-pays.
Oregon has a network of
insurance agents and com-
munity organizations that can
help people enroll.
You can ¿ nd an agent or
community partner in your
area by going to www.ore-
gonhealthcare.gov/get-help.
html or calling the Oregon
Health Insurance Market-
place foll-free at 1-855-268-
3767.
$1.859 reported at the Sin-
clair station on Southgate as
of Tuesday afternoon.
Statewide the average
price for unleaded was re-
ported at $2.17 per gallon,
according to GasBuddy.
com, and trending down-
ward. The current national
average for regular unlead-
ed is $1.87 per gallon.
weeks in January and this is
just a way to say ‘Hey, let’s
keep that going,’” she said.
The contest will kick off
on Jan. 30, which is also the
date of Higher Power Fit-
ness’s anniversary celebra-
tion. Community members
are invited to visit the studio
throughout the day and stay
for a few 15-minute “sam-
ples” of the classes offered by
the studio.
Henderson said the stu-
dio’s goal is to help “real
people” live a healthy life-
style through nutrition and
exercise, offering solutions
like the studio’s 30-minute
express workouts during the
lunch hour. She said Herm-
iston has been “extremely
receptive” to Higher Power
Fitness in its ¿ rst year.
The organization’s Pendleton
facility is located at 71046
Appaloosa Lane.
For more information,
contact
541-278-0215,
lynn@bluemountainwildlife.
org or visit www.bluemoun-
tainwildlife.org.
BRIEFCASE
Health insurance
deadline Jan. 31
Do you have health insur-
ance yet for 2016? If not, time
is running out to enroll and
you may pay a penalty if you
are uninsured this year.
Open enrollment lasts
through Jan. 31. You and
also change your health plan
through the end of the month.
According to the Oregon
Department of Consumer and
Business Services, anyone
who isn’t enrolled in a health
plan by the deadline will have
to pay a penalty when paying
taxes for 2016.
The penalty for not having
insurance in 2016 is either 2.5
percent of your yearly house-
hold income or $695 for ev-
ery adult in your family plus
$347.50 for every child under
18, whichever is higher.
For example it could cost
$2,085 for a family of four,
with two parents and two
children younger than 18,
earning $50,000 a year, as a
penalty.
Oregonians can sign up,
renew, or change their health
insurance plans at Health-
Care.gov. If you were already
re-enrolled in your current
plan, you can change plans
through Jan. 31.
“If the price of your cur-
rent plan has increased for
2016, it may be worth check-
ing HealthCare.gov to see if
you can ¿ nd a less expensive
plan or if you Tualify for ¿ -
nancial help,” said Patrick
Allen, director of the Depart-
ment of Consumer and Busi-
ness Services, which runs
Gas price drops below
$2 per gallon locally
Gas prices have dropped
below $2 a gallon at most
Hermiston area stations.
According to GasBuddy.
com, the price for regular un-
leaded gasoline was $1.999
or lower at most service sta-
tions in the Hermiston area as
of Tuesday afternoon.
The lowest price reported
locally was $1.939 at both the
Space Age and Pilot travel
centers along Interstate 84 at
exits 182 and 188 respective-
ly.
The lowest price in Herm-
iston was reported at the 76
station on Hermiston Avenue
at $1.979.
Prices are even lower in
Pendleton, with a price of
Higher Power Fitness
sponsors contest for
anniversary
Higher Power Fitness is
celebrating its one year an-
niversary by trying to help
Hermiston lose 1,000 pounds.
The ¿ tness studio is spon-
soring a “Biggest Winner:
Ultimate Thinner” contest
from Jan. 30 to March 13.
The weight loss contest is for
teams of ¿ ve people, at least
two of which must not be
Higher Power Fitness mem-
bers.
The cost to enter is $250
for a team of ¿ ve. (very
participant gets a T-shirt and
the team that loses the most
weight over six weeks will
win $750.
Owner Cindee Henderson
said teams are already sign-
ing up, including some work-
place groups.
“New Years resolutions
are real strong in the ¿ rst two
Blue Mountain Wildlife
set annual meeting
The public is invited to the
annual membership meeting
of Blue Mountain Wildlife.
The meeting is Saturday
at 1 p.m. at the First Chris-
tian Church, 215 N. Main St.,
Pendleton. Those attending
should enter at the Bailey
Street door.
Blue Mountain Wildlife is
the largest rescue, rehabilita-
tion and education organiza-
tion serving (astern Oregon
and southeastern Washington.
3rinted on
recycled
newsprint
VOLUME 110 ɿ NUMBER 3
Gary L. West | Editor • gwest@hermistonherald.com • 541-564-4532
Tammy Malgesini | Community Editor • tmalgesini@eastoregonian.com • 541-564-4539
Sam Barbee | Sports Reporter • sbarbee@hermistonherald.com • 541-564-4542
Jade McDowell | Reporter • jmcdowell@eastoregonian.com • 541-564-4536
Jeanne Jewett | Multi-Media consultant • jjewett@hermistonherald.com • 541-564-4531
Shannon Paxton | 2f¿ ce coordinator • spa[ton@hermistonherald.com • 541-564-453
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