10/05/05 Minimum wage and the fruit industry, Pt.1

10/05/05 Minimum wage and the fruit industry, Pt.1

The tree fruit industry continues to struggle with the effects increases in minimum wage will have on its profitability. Starting January First, Oregon's minimum wage goes up to $7.50 an hour. But not to be out done, Washington State will retain the highest minimum wage in the nation when, on January First, its hourly wage goes up to $7.63. To Jim Hazen of the Washington State Horticultural Association, the continuing impacts are obvious. HAZEN: For the tree fruit industry which is very labor intensive, this obviously diminishes the profitability for a number of our producers. And the problem according to Hazen is by its very nature, the tree fruit industry is pretty much stuck with the costs of minimum wage. HAZEN: We are not price setters we are price takers. Any increase in costs has to be absorbed. And any more, it's becoming harder and harder to absorb those types of costs. And legislatively, neither Washington State nor Oregon has shown any indication they would at least slow down, if not halt, minimum wage increases. But Hazen says in lieu of that, there are solutions to minimize the impact of minimum wage on growers and producers that could be sent for legislative consideration. HAZEN: Some sort of incentives or exceptions, some type of credit maybe, for minimum wage, that then growers or producers could apply to other purchases. More in our next program.
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