DES MOINES – Iowa Gov. Terry Branstad said this week that he will consider a statewide minimum wage increase to replace the hikes that are being approved county-by-county, reports The Des Moines Register. Iowa’s minimum wage has been $7.25 an hour since 2008.
“I think it would be wise for us to carefully review the workforce and what the needs are out there and look at what neighboring states have done and what is competitive," the governor told reporters this week. He said he plans to meet with state legislators after the November 8 election to discuss the issue. "We know that this is a controversial and difficult issue, but hopefully it is one that we can address," Branstad said, adding, “We have to look at what is fair and what is realistic," regarding whether the minimum wage could be raised to $15 an hour.
Ben Hammes, a spokesperson for the governor, told reporters that although the governor is opposed to individual counties approving minimum wage increases, Branstad is not making specific commitments to raising the minimum wage. “To suggest that he is backing a statewide minimum-wage hike at this point is going way too far," Hammes said.
For example, Polk County will increase its minimum wage to $8.75 an hour in April 2017, $9.75 in January 2018 and $10.75 in January 2019, with future wage hikes tied to the Consumer Price Index, writes the news source. Similar increases have also been approved in Johnson, Linn and Wapello counties.
"We have been hearing from employers all over the state that a patchwork of different wage rates is a deal breaker that makes it harder to conduct business in Iowa. We agree and think that a uniform minimum wage across the state is the proper approach," Iowa House Speaker Linda Upmeyer told the news source. "We’re willing to take a look at the proposals next year, but the last thing that we want to do is pass something that has a negative impact on workers and small business.”
Mike Ralston, president of the Iowa Association of Business and Industry, told the news source that the group supports state preemption to address the growing differences in county and local government proposals to increase the minimum wage. "The current inconsistency inhibits growth and economic development and increases administrative burdens for employers. ABI looks forward to working with the legislature and Governor Branstad to address this issue,” he said.
Read more about how labor pressures coming from local government and special interest groups affect the convenience and fuel retailing industry in the April issue of NACS Magazine.