Is minimum wage costing businesses state contracts? [Illinois]

The Daily Herald ^ | July 01, 2007 | JOHN PATTERSON

[endthematrix]

SPRINGFIELD - Illinois' minimum wage shoots up to $7.50 an hour today, a move heralded as helping working men and women by the Democrats who pushed it, but which ironically may have cost a suburban company two state contracts and eliminated dozens of downstate jobs.

Hoffman Estates-based Rely Services has a data-entry center in downstate Carlinville, which for years held state contracts to manually input tax and vehicle data.

But in bidding to keep those contracts, the company was undercut, in part, its officials say, because out-of-state firms can pay their employees a lower minimum wage. As a result, the center that at its peak employs 134 will see its workforce plummet to 14 on Monday.

[festus]

Illinois' minimum wage shoots up to $7.50 an hour today,

Hot dog I'm going to be rich !!!

[denydenydeny]

The invisible hand is giving Illinois the finger.

[Sir Hailstone]

Unintended Consequences PING

[endthematrix]

[packrat35]

Anyone could have told them this would happen and probably did. When government interferes with business, it will cost YOU in the end. What do you want to bet that most of the employees there were FOR this law. Unintended consequences

[peggybac]

“We’re definitely one of the more progressive states in this regard,” said Illinois Department of Labor spokeswoman Anjali Julka.

I wasn’t aware that being progressive meant the elimination of jobs. Heck, what am I thinking. No jobs = welfare and more reliance on government.

Never mind.

[Graybeard58]

I live in Illinois and all I ever wanted was a free pony but I found out the hard way that I'm just the guy who pays for other people to have free ponies.

[FormerACLUmember]

Illinois democrats are the elite of the elite: Penultimate morons of morons! Idiots extraordinaire! Empty suits so vacant that they create a deep space vacuum!

[AzaleaCity5691]

I think Chicagoland and the rest of the state need to come to an understanding, and to me, understanding means separation. I think the same is in order for New York State and Upstate New York, and other areas where one area of a state can dominate the rest of a state. It is theoretically permitted in the U.S. Constitution.

[ChicagoConservative27]

Yes, yes, and yes.

[thebigmachine]

companies may cut down and workers may lose jobs due to regulated wage increases, but the sad truth is, that minimum wage STILL barely pays the rent/mortage for most people.

[TC Rider]

companies may cut down and workers may lose jobs due to regulated wage increases, but the sad truth is, that minimum wage STILL barely pays the rent/mortage for most people.

Minimum wage is not intended to make a mortgage payment. It is an ENTRY level wage, people are expected to do better, improve their resume, their work ethic and climb the ladder to success.

Welcome to FreeRepublic (I hope you're not a troll)

[kabar]

...that minimum wage STILL barely pays the rent/mortage for most people.

These are entry level wages. The minimum wage can't pay for the rent/mortgage of most people. The minimum wage is an artificial intervention by government into the marketplace. Are you suggesting that the minimum wage be raised even further? Have you ever run a business? Someone has to pay for these mandated increases. The employer has to reduce his profit margin and/or increase the price of goods sold making him less competitive and/or decreasing the market for his goods.