Missouri Chamber of Commerce plans to challenge minimum wage increase

(MDN News) -- Missouri's minimum wage will increase by 10 cents in 2013, but the state's top business organization is fighting the change.

The hourly wage is slated to rise from $7.25 to $7.35 next year because of a 2006 ballot measure approved by voters that ties the minimum wage to cost of living.

The Missouri Chamber of Commerce and Industry's spokeswoman, Karen Buschman, said the minimum wage should not be tied to an indicator that automatically increases.

Buschman said the high minimum wage will drive businesses -- and the jobs they create -- to Missouri's neighboring states. Illinois is the only adjacent state with a minimum wage higher than $7.35 an hour.

"The last few years we have pursued legislation to try to disconnect the minimum wage from the mandates it is currently tied to," Buschman said. "We have been unsuccessful, but it will likely be part of our legislative priorities for the upcoming year."

Director of Missouri Jobs With Justice Lara Granich said the fear that businesses will suddenly flock to bordering states is unfounded.

"All the research shows that this does not bear out. That's just a scare tactic in the public today to try to keep the minimum wage down," Granich said.

Senate committee considers tying state minimum wage to federal standard

A proposed change to current minimum wage legislation could affect thousands of Missouri workers. The Missouri Senate bill calls for voters in the 2012 election to decide whether to bind the state minimum wage to the federally mandated wage. The Senate Small Business, Insurance and Industry Committee heard the bill Tuesday [Feb. 22]. Committee Chairman Sen. Scott Rupp, R-St. Charles County, said he sees the change as benefiting Missouri's business community. "If we start to exceed the national minimum wage, then all of a sudden we become even more uncompetitive compared to neighboring states," Rupp said. "(The bill) is something to look at, especially in an era of low employment." While the federal and state wage are both currently set at $7.25, critics worry inflation could eat up the amount that workers would receive in the future. The current law was enacted in 2006, after voters supported an increase in the state's minimum wage levels. Lara Granich, director of the Missouri Jobs with Justice Coalition, helped push for passage of the 2006 increase. She said the amount of support the proposal received around the state proves that lawmakers should keep their hands off the status quo. "76.4 percent of Missourians voted for the increase in minimum wage," Granich said. "Actually, even more powerfully, it passed in every single county by 16 points or more." However, Rupp said the current economic downturn makes it imperative to try to attract employers to the state. "We can kick it back to the people and say is this something that you wanted to do to try to spur economic growth in our small businesses, which hire most of the employees here in the state," Rupp said. Sponsor of the bill, Sen. Jason Crowell, R-Cape Girardeau, could not be reached for comment.