Chamber of Commerce, Padres oppose $25 minimum wage proposal
San Diego Regional Chamber of Commerce President and CEO Chris Cate speaking at a press conference Tuesday June at Ingram Plaza in Liberty Station Photo by James Miller Times of San Diego The San Diego Regional Chamber of Commerce and the San Diego Padres on Tuesday denounced a proposal that would increase the minimum wage for hospitality employees to per hour According to the chamber s President and CEO Chris Cate a San Diego city councilmember from to the wage hike for employees at hotels event centers amusement parks and popular attractions such as the San Diego Zoo will hamstring the local market system Here is the harsh reality of this approach layoffs closures lost jobs not just for businesses but across the nonprofits and institution providers who backing our largest part vulnerable residents Cate noted at a press conference This approach contends to help workers but would veritably leave various of them without work at all Not all small businesses would have to raise wages and not all workers would get a raise under the terms of a proposal set to go before a San Diego City Council sub-committee on Wednesday Only workers employed at hospitality venues and employees of businesses that lease space there would would have to pay their employees per hour according to the proposal which if passed would take effect next year City and governing body employees are exempt from the wage increase Padres COO Caroline Perry announced the exemption raises serious concerns about the fairness of the proposal The city is exempting nearly of its own employees including janitorial and event staff who would otherwise be covered Perry revealed If an hour is truly what it takes to afford to live in San Diego why doesn t it apply to the city s own workforce The answer is simple the city knows it can t absorb that cost and businesses can t either The Padres estimated the minimum wage increase would cost them at least million per year Defending proposed minimum wage increase City councilmember Sean Elo-Rivera introduced the proposal in February He is one of three councilmembers on the city s Select Committee on Addressing Cost of Living which will review the proposal Wednesday morning According to a analysis penned by Elo-Rivera s staff the wage bump combats corporate greed by reducing low-income hospitality workers reliance on residents assistance programs Local taxpayers are subsidizing corporations for the low wages they pay San Diegans the review says Consequences unclear for San Diego hotels Hotels with fewer than rooms will not have to raise wages to an hour However the city s independent analysis suggests the minimum wage increase could be substantial for hotels in San Diego which might respond by shrinking their workforces or raising prices While tourists reluctance to pay more for lodging might slow associated tax revenues over time they aren t expected to plummet Contrasting views Raising wages to per hour at the start of next year a jump from the city s minimum wage could trigger immediate disruptions which might be avoided by increasing wages gradually according to the city s independent analysis The impact of the increase on businesses and workers depends on a multitude of factors including how employers choose to address cost increases and broader economic conditions There is no clear consensus on either the positive or negative impacts of implementing a minimum wage for hospitality workers the analysis declared But rather contrasting views
