March 31, 2007
Program struggles with minimum wage increase
Jill Kasparie
(OTTUMWA) Sunday is the first day the minimum wage will increase across the state of Iowa after Governor Chet Culver signed it into law shortly after taking office. Wages will go from $5.15 an hour to $6.20 an hour on Sunday.
While it has many employees celebrating pay raises, other businesses and organizations will be struggling to keep up.
One organization that provides training for people with developmental disabilities is working to stay afloat.
For folks who work in the can redemption program at Tenco Industries, Incorporated in Ottumwa, can redemption isn't just a job, it's a means of learning new skills for the future.
The future, however, looks a little dim for Tenco with minimum wage increases leaving their program short on funds.
The minimum wage increase means paying workers more.
"Like if you were in a different business, you could actually maybe raise the price of a product to cover that additional cost and here that's not one of our opportunities to do so," Tenco Executive Director, Pam Williams, said.
Tenco gets one penny of proceeds from the can distributor for each can or bottle redeemed at the center.
"When the minimum wage goes, we're going to be putting out more than we're actually taking in," Developmental Coordinator, Jo Williams, said.
Pam Williams said the one penny return from the distributor is controlled by the government, so only a legislative bill could bring in more money.
Employees are sending out cards to get folks to petition state legislators to get a bottle bill passed.
When KTVO heard this, we talked to State Representative Mary Gaskill of Ottumwa to find out if lawmakers are considering the bill.
She says the so-called bottle bill is on the house calendar, and there's a possibility they will bring it to the floor next week.
"It allow persons who are doing the cans to enter into a contract with the distributor to get their amount of money they need to provide the service," Gaskill said.
Pam Williams said if they don't get a bill to pass soon, they will have to make some cutbacks, such as reducing the number of hourly paid individuals who work at the can redemption site.
"We're not about profit. We're about providing jobs, and this could feasibly put the operation in jeopardy because we can't just absorb those costs," Jo Williams said.
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