Starting July 1, workers in over a dozen cities received pay bumps, as higher minimum wage laws kicked in across the country. One small business owner who acted ahead of the hikes is Gina Schaefer, owner of A Few Cool Hardware Stores. She raised the baseline pay for her employees to $16.10 per hour at all U.S. locations. Schaefer also continues to advocate for a federal minimum wage increase. "It just makes good sense for the bottom line of a business," she told Cheddar. "The more employees that have more money, the more they shop locally.”


Opening Bell

Hardware Store Owner Calls for Federal Minimum Wage Hike

Alright, starting July one workers at over a dozen cities receive pay bumps as higher minimum wages kicked in across the country. Among the impacted areas include Connecticut, Nevada and Oregon and of course Washington D. C. Our next guest is a small business owner pushing for the federal minimum wage increase as wages continue to fall behind inflation. Gina Shafer, owner of a few cool hardware stores joins us now, first of all, awesome name for your company. But you also have to talk about the fact that you know, you have seven stores in the D. C. Area meaning your workers will start receiving a minimum wage of $16 an hour. Now as a small business owner, why are you on the forefront of fighting for a federal minimum wage increase? While some other small business owners are saying it's gonna hurt too much. I can't right now, you know, how will this help? Well, I mean just a couple of things, so we have 13 locations across a couple of different cities and we will be raising that wage in all of those locations. Whether or not the requirement has gone into effect. And so we're very proud of advocating on behalf of the races for a bunch of reasons, but one of them in particular is that it just makes good sense um for the bottom line of a business, the more employees that have more money, the more they shop locally, I want my employees to be able to, It's just been far too long since the federal minimum wage has been raised. You know, we've been working on getting that race for over a decade now and in 20 states, it's still $7.25. We want to be a part of the movement to make sure that that that goes up and that needs to go up for so many people who can't even afford a full gallon of milk. Because as you mentioned, minimum wage is 7 25 for many areas. How was D. C. Constantly getting this right? I mean in 2021 you all had the highest minimum wage of 15.20 cents. So what what's happening in D. C. That they're getting right? That other states need to follow suit on? Well, you know, it's it's cities across the country are expensive places to live. And I think that the government of the District of Columbia has recognized the fact that if we want people to stay in the city, who to raise their families to live to provide um the workers that the businesses need, we have to take action as a city and make sure that they can afford to live here. And one of the ways that we can do that is to make sure that we continue to increase the federal minimum wage. Sorry, the local minimum wage. So true. Okay, so uh I think this increases the step in the right direction, but other states are falling behind as the US experiences the longest period without a federal minimum wage increase since the baseline wage was created in the thirties. So how critical is it that the U. S. Raised the minimum wage? You know, help out people who are struggling and just people who are maybe not even struggling but you know, it's making it harder for them to keep up with the inflation rate. Sure. I think um I think the cost of living is uh I think nationally you have to make over $16 an hour or I'm sorry, $16,000 a year in order to be considered above the poverty level, which of course seems very low to probably most of your listeners and 20 states is still 725 which is below that six $10,000 threshold. So we have effectively allowed a federal minimum wage to to to to continue that keeps people in poverty. Um It's been since 2000 and nine since the federal minimum wage was increased and that was only increased to the 7 25. So um you think about the past couple of years in particular the issues that we've had with um all of the inequalities that have come really to the forefront in our country. Race, inequality, gender inequality, income inequality in this case. And a lot of those issues stem from poverty levels and um workplace inefficiencies, workplace inequalities that can be increased or fixed. Um if we start talking about raising that minimum wage and a lot of people hear this as you know, just talk to the government is doing. But when do you think we could realistically see a federal minimum wage increase? I mean, I hate to laugh. I've been working on this issue for over a decade. I've, I've given, you know, speeches to congress and, and have been in the news with business for a fair minimum wage and lots of other businesses across the country that believe like I do, you know, people often think that this is gonna be the death of small business and um, all of us are against it when in fact, there are thousands of companies like mine across the country who have been trying to get that federal minimum wage increase for over a decade now and it hasn't happened. Well, you bring up, but you do bring up a good point. You know, there are a lot of small businesses out there that are saying, I can't afford to pay my workers a higher wage and if they do, they're gonna have to increase the prices of their goods that they're selling and they're afraid people won't pay those prices. So what would you say to some of those other small business owners who are out there and are concerned that this may be the detriment of their small business? Well, I think I would go back to the pointing to the fact that one we do not want to create a labor force that has to live in poverty that's a drain on federal resources for things like um food and healthcare, um and other social services. And I truly believe that everyone in our cities, our our customers cities and small towns across the country and if our our customers can't afford to shop with us, it doesn't matter what we're paying, it doesn't matter who we're trying to attract as a customer, It really starts with creating a great workplace. And you know, I I mentioned some of the issues that we've that have really come to light over the last couple of years. But right now, a big thing in the news is a great resignation. And if you think about why people are quitting and all of the rhetoric around that, it really starts with a healthy um safe, productive um resilient workplace and and a good workplace starts with fair wages. And so, you know, small businesses that are afraid they can't raise their wages are um or large businesses are effectively participating in creating those unsafe, Uh, not unsafe, but you know, unhealthy workplaces that we all need to make sure that this country stays strong. We do bring up a good point about the great resignation. We only have about 30 seconds left. So I want to ask you how could the federal minimum wage increase impact? The great resignation because a lot of people are concerned about that too, especially those people out there who have businesses or people that are trying to sustain their communities as a whole. So what do you think? Will it have any impact? Well, yeah, absolutely. I think that I think that people want to stay where they feel appreciated and they feel appreciated first when it starts with a with a good wage. Um and I think that you know people are leaving jobs in droves because they're going to where they can make more. Um I had a friend recently in one of the states that still pays 7 25 and her husband was offered a job, a small business that was going to dollars an hour or a national chain that was gonna pay 7 25. Why would you know it was an easy, it was an easy solution for him. People want to go where they feel appreciated and and pay is a big part of that. Alright, I wish we could talk more. I have more questions but we're gonna go ahead and close this up. Thank you so much Gina Shaffer, owner of a few cool hardware stores, go work for her. She's paying big money