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The City of Baltimore and the State of Maryland are actively working to increase the minimum wage to $15 per hour. Let's take a moment to discuss the impact so far.

MDMFG (MDMFG.org) is adding it's voice from the manufacturers in and around Baltimore City who have realized first hand the impact of the rising cost of labor.

We respectfully request our legislators to consider the following unintended consequences:

  1. Manufacturers will invest less in employees. Minimum wage is not meant to be sustainable. It is a starting point for unskilled labor to enter the workforce and obtain training. Once training has completed and value has increased, manufacturers must increase hourly wages. Not because the law requires it, rather it is because the employee is worth more. Consider your individual reaction when your restaurant bill increases nearly 40%. Did you receive more on your plate? Are the ingredients higher quality? Has the environment improved? If the answer is no, you are not likely to return to that restaurant. How about your auto insurance or your medical insurance. If the coverage has not improved yet the price increases, what do you do? You look for another provider. So do customers for Maryland manufacturers.
  2. Total manufacturing costs have increased yet value has not. Maryland manufacturers are forced to demand much higher levels of performance from employees and to be less flexible with employees who are not performing well. There simply is no margin for error or investment.
  3. With the passing of the Safe and Sick Leave Act, marginal employees abuse SSL and instead of the intended use, they simply use the time for unplanned vacation. This leaves manufacturers scrambling for labor which is already short due to high cost.