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Reaction mixed to upcoming wage hike


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By Mark Busch
Over the Rainbow ice cream shop owner Tom Stebbins scoops up some ice cream Monday at his shop in Berwyn. Stebbins said the minimum wage hike could affect his business next summer; however, he’s hoping the economy will improve by then.
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By Danya Hooker, dhooker@mysuburbanlife.com
Berwyn Life

Berwyn, IL -

With tens of thousands of Illinois workers set to receive a boost in their hourly wages next month, some local business owners, already decimated by the economic recession, are evaluating their options.

The state’s minimum wage will increase from $7.75 an hour to $8 July 1. It is set to increase another 25 cents in July 2010. While some local businesses may be forced to cut back on hours or employees, many are likely to weather the storm.

A large portion of Berwyn’s small businesses are sole-proprietorships with no employees affected by the wage hike. Upon entering almost any shop in the Depot District, shoppers are almost guaranteed to find the owner stocking inventory, answering customer questions and working the cash register.

Lori Thielen, owner of Serendipity Antiques, 6733 Stanley Ave., said even owners who may have hired help a couple years ago have been forced to cut back.

“A lot of us are working the stores (ourselves),” Thielen said. “Especially in this economy, we’re trying to fill in instead of paying someone else to do it. That’s one way to cut overhead.”

By the numbers
$8 The new state minimum wage that will take effect July 1.
7th At $7.75, Illinois’ current minimum wage is the 7th highest in the nation.
3rd Barring wage hikes in other states, Illinois will rank 3rd in the nation when the pay rate increases to $8.25 on July 1, 2010.
$2.65 The minimum wage in Kansas is the lowest of any state
~SOURCE U.S. Department of Labor

Tom O’Brien, owner of O’Brien the Cleaner Inc., 6915 Stanley Ave., is one of the few Depot District business that has multiple employees. With two part-time workers and one full-time worker, O’Brien said he has been forced to cut back his employees’ hours. All three of his workers currently make more than $8.25, the level the minimum wage rate will increase to in 2010.

A supporter of increased minimum wages, O’Brien said he does what he can to help his employees through this recession.

“I’ve been decimated like everybody else — this business took a hit before the economy did,” O’Brien said. “But I tend to cut hours (not wages). It’s just murder for everybody.”

The pay hike is the latest in a four-step plan to boost wages for nearly 650,000 Illinois workers. In 2006, the legislature approved the plan, which increased the minimum wage from $6.50 to $7.50 per hour, and built in 25-cent increases for the next three years.

Twenty-seven states, including Illinois, have state-mandated minimum wage laws above the federal rate of $6.55. Washington currently tops the list with a minimum wage of $8.55 per hour, while Kansas comes in last in the nation with a minimum wage of $2.65.

One local business owner said he is concerned about the effect of the wage hike. Tom Stebbins, co-owner of Over the Rainbow Ice Cream parlor, 6836 Stanley Ave., said he currently has one employee working Sundays at minimum wage.

“I have a tough time as it is,” Stebbins said. “I’m here six days a week, and I hire someone just so I can have one day off.”

Stebbins said he will likely make it through the end of this year as he needs less help and works fewer hours during the cold weather. But come next summer when the wage rate will jump to $8.25, Stebbins said he could be in more trouble.

“It could be an issue next year,” Stebbins said. “But hopefully the economy will also pick up by then.”

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