Mayor Emmanuel announced today that he is forming a task force to discuss raising the minimum wage, which has been a hot button issue nationwide. The Mayor did not announce who would be part of the task force, but did say labor and business leaders will be included in the task force. Findings will be presented to the Mayor later this summer. The Mayor is stuck between a rock and a hard place on this issue, as he is being criticized by union leaders for "giving in" to corporate interests, and is being criticized by corporations for increased costs of doing business in Chicago. It will be interesting if the hospitality industry will be included in the task force.
The National Restaurant Association has weighed in on the issue of increased minimum wage, and has lobbied against a dramatic increase in the minimum wage. The NRA has explained "As businesses struggle to recover from the economic recession, dramatic, mandatory wage increases such as those proposed under the Fair Minimum Wage Act of 2013 would place yet another financial burden on business owners who are already feeling the pressures of a weak economy and additional costs and regulatory complexity associated with the Affordable Care Act." Additionally, the impact would have a dramatic effect on the restaurant industry in particular, as most industry participants only have 3-5% pretax profit margins, and "58 percent of restaurant operators increased menu prices and 41 percent reduced employee hours following the 2007 minimum wage increase."
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