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| CRBJ Home > July 2006 | |||||
Good public policy supports job creationJennifer Alexander
We oppose mandatory paid sick leave because sound public policy should support economic development, job creation and our continued quality of life, not jeopardize them. Most Madison-area businesses are small businesses. Small businesses almost always start with passion -- the passion of people who want to do something they love. They run on adrenaline, long hours and dedication -- and usually very thin profit margins. The challenges of running a small business are real, and making them successful is a tremendous endeavor. Compliance and operational costs of a recent mandatory paid sick leave proposal were estimated by proponents to be about 3 percent of payroll costs. For a business with tight cash flow and barely earning a profit, this extra bite could mean the difference between success and failure, retention/expansion in Madison or the relocation of jobs. Many local businesses calculated their cost of compliance to be considerably higher than 3 percent. One small business member determined that compliance would have cost his business $19,000 last year; his profit was $18,500. Another calculated the cost at $25,000. Thankfully, the unfunded mandate was rejected by the Madison Common Council in mid-May; however, the issue has resurfaced as a possible referendum question. While we do not know how a ballot question would be framed, we do know that small businesses value their employees. Opposition to this policy is not anti-worker -- it's anti-mandate. Employers know that they must provide competitive wages and benefits and treat employees with respect and compassion if they hope to retain their workforce. It's just the right thing to do, plus it's in their best interest. Some businesses report that without being mandated to do so, they continue to pay salaries and benefits for employees who are unable to work. GMCC and its members care deeply about this community and our workers. We oppose this ordinance because we want to protect local jobs. Opposition affords employers the opportunity to provide benefits preferred by the majority of employees instead of forced compliance with a city-mandated hierarchy of benefits. When the issue came to a vote on May 16, most Madison Common Council members agreed with informed constituents that guaranteeing paid sick leave to part-time workers could actually force employers to eliminate part-time positions, delay pay raises, or reduce existing benefits for all employees. They understood that the employee compensation pie would be re-sliced, not enlarged, by a mandate. Simply put, it would make it harder for business owners to run their businesses, especially small businesses -- the kind that make Madison Madison. Local political activists need to consider how their actions affect the very people who provide jobs. We need to consider approaches where business owners are not burdened with laws that ultimately hurt the people they are intended to help. Let's create a climate where businesses like your favorite locally owned restaurant, bike shop or salon -- and the business you may be dreaming of starting yourself -- can get a healthy start, flourish and grow. madison.com ©2009 Capital Newspapers. All rights reserved. |
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