MINIMUM WAGE INCREASE IMPACTS
As you know, the Oregon legislature passed a stepped increase to the minimum wage that took effect July 1st and runs through 2022. Previously the minimum wage was indexed to the consumer price index and will again after the 6 year stepped increase.  For perspective, the minimum wage increased by $2.75 per hour over the past 15 years or an average 2.8% per year. Over the next 6 years it will increase by $5.50 per hour or an average of 10% per year. 

Although the minimum wage rate does not directly impact us, it does indirectly. We have always paid above minimum wage for our entry labor position, with our skilled staff making significantly more. Our work is harder and requires more effort than most traditional minimum wage jobs. Our current entry level wage is at $14.00 and has increased significantly over the past 2 years due to the low unemployment levels and the great economy. While the minimum wage wouldn't directly, the wage pressure it will place on us due to the great economy and low unemployment unfortunately will.

Setting all political opinions aside as to whether it was "the right thing to do", we all must understand that it will impact the cost of products and services we all use. We at Pacific have always worked hard to offset inflationary impacts to our pricing through efficiency improvements and innovation. With an historical annual 2.8% labor cost increase it has been possible to offset some or all with efficiency and innovation, especially in a slower economy. With the pending 10% annual increases, combined with a hot economy, our industry, as will most service industries, see prices increase greater than in recent history. Say goodbye to the five dollar foot-long and dollar menu.  

 
OREGONIAN: 6 things to know about Oregon's new minimum wage law
 
ASSOCIATED PRESS: Small businesses wary of impact of increased minimum wage
 

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