Linda Doherty, President and CEO of the New Jersey Food Council (NJFC) released the following statement after the Senate Labor Committee passed along party lines S-15, legislation which would increase the minimum wage in New Jersey by 79 percent to $15 an hour:
“New Jersey’s food retail and distribution industry employs almost 200,000 workers annually. This proposed 79 percent minimum wage increase is a drastic rise in labor costs that will result in the loss of food industry jobs and hours worked, and higher prices for New Jersey consumers.
New Jersey’s food industry is shrinking and facing unprecedented competition from online retailers. Some food retailers have been unable to survive these industry challenges.
Economists John Dunham & Associates have conducted a comprehensive economic analysis of New Jersey’s food retail and distribution industry. The data shows that New Jersey has lagged behind national job growth, both in lower-skilled jobs and in total jobs, in almost every year the minimum wage was increased. Following the 2014 minimum wage increase, low wage job growth fell from 2.79 percent to 1.48 percent, a loss of -1.31 percent.
The data reveals a significant increase in the price of groceries and other essentials. The price tag of a $15 minimum wage in increased costs to consumers is nearly $280 million per year. Even more troubling is that seniors age 55 and above, many of whom are on fixed incomes, would bear 40 percent of these increased costs to the tune of nearly $124 million. Basic necessities would cost more, such as toilet paper, which would increase by 19 percent.
Our stores are the anchor of almost every New Jersey community, and our industry has an impact on the health and wellness of every New Jersey resident. This forced increase will jeopardize new food retail investment and job growth, and will drastically raise prices for food and groceries for all New Jersey families.”