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Farmers, business groups in Utica area express concern over proposed minimum wage increase

Ellen Abbott
/
WRVO News
Meghan Fraser McGrogan, president of the Greater Utica Chamber of Commerce speaking about the minimum wage.

The New York State Farm Bureau is among the most vocal groups a proposed $15 dollar minimum wage in the state. They’re asking New Yorkers to put the pressure on state lawmakers who will decide whether to include the increase in the state budget.

 

According to the U.S. Department of Agriculture, 10,000 farms in New York state employ hired hands. Farms would be required to pay them $15 an hour if the proposal to raise the minimum wage is approved by the state legislature. And it would ultimately cost these farmers between $400 to 600 million a year, according to a report from Farm Credit East.

Vernon dairy farmer Steve Adams says one reason it will hit him harder is that dairy prices are determined by the federal government, so he can’t raise the price of milk to offset the increased labor costs.

 

"We get what they give us and deal with it. So it’s a matter of figuring out better business strategies, or cut back where we can,” said Adams.

 

Jake Schieferstine, a dairy farmer and member of the Farm Bureau, says most agricultural commodities are in the same boat. So some farmers are talking about automation as a way to reduce labor costs, although Schieferstine says that can be an expensive endeavor. He says he just hopes lawmakers realize how this could hurt the state’s growing agriculture industry.

"It is still a major economic driver, certainly in upstate New York. I hope they’re listening, and if they’re not, they’re going to drive a lot of business out of New York."

Utica Chamber of Commerce also opposes hike

The Greater Utica Chamber of Commerce is engaging in a new appeal to oppose raising the minimum wage. President Meghan Fraser McGrogan says there’s still time for business to take a stand.

"We are a small voice in a large fight, but we are trying our best. And the biggest thing our members can do, is call legislators and advocate.”

McGrogan says the Utica Chamber is among the biggest such organizations in the state. She says the increase would be catastrophic for upstate business. 

The owner of one such growing business says she may reconsider expansion. Kathleen Rutishauser

owns Daughter for Hire, a company that helps the elderly. She says the business has grown substantially in just two years. And she says there is more need, but plans to grow will stall if she has to pay her employees $15 an hour.

"We’re talking about expanding to the west to Syracuse and Rochester, and to Albany in the east. And we would not be in a position to do that if we weren’t on stable footing with our revenue and our employee base,” she said.

Rutishauser is among several small businesses the Utica Chamber of Commerce is highlighting.
 

Lawmakers in Albany have an April 1 deadline to approve a state budget. Negotiations are underway to determine if the minimum wage increase will be included in that spending plan.

Ellen produces news reports and features related to events that occur in the greater Syracuse area and throughout Onondaga County. Her reports are heard regularly in regional updates in Morning Edition and All Things Considered.