Higher prices, fewer hires and reduced services were among the concerns raised during a Durango City Council study session on raising the minimum wage within city limits.
City Council heard from representatives of the Region 9 Economic Development District, Fort Lewis College, the Durango Chamber of Commerce and the Durango Business Improvement District about livable wages and the pros and cons of a potential wage increase.
FLC economics professor Nate Peach said raising the minimum wage could increase incomes, stimulate economic activity, more equitably distribute profits and improve quality of life for workers. But he noted trade-offs that could differ based on how much wages rise and how quickly businesses must adapt.
“One way they might respond by higher costs is by pushing those costs onto consumers. I’m going to raise the price of my product to compensate for the higher costs. We saw this post-pandemic with input costs,” he said. “… Another way I might respond as a company is substituting away from labor and toward capital.”
Durango Chamber of Commerce Executive Director Jeff Dupont said now is not the time to consider raising the minimum wage given labor shortages, inflation and volatile markets that have challenged businesses in recent years.
“It’s a difficult time to be a business owner, and we really just need flexibility,” he said.
He said the city should allow market forces to determine wage rates, as is currently the case.
Dupont read letters to the council from business owners weighing in on the issue.
Mild to Wild Rafting owner Alex Michael said paying a higher wage to seasonal teenage employees still learning basic job skills is financially unsustainable.
Strater Hotel General Manager Tori Ossola said a wage hike would likely lead to staff reductions, service cuts or price increases.
Peak Food & Beverage CEO and co-founder Kris Oyler said a minimum-wage increase would prompt the company to move business operations outside city limits.
Durango City Councilor Kip Koso asked Dupont how business owners could help reduce employees’ cost of living.
Dupont did not have a direct answer. He said he suspects most minimum wage earners are students who aren’t in the market to buy homes. He added that businesses can offer benefits like free meals and access to services.
Koso, who asked most of the questions during the discussion, said in an interview that it doesn’t appear there is support on the council to raise the minimum wage – at least not at this time.
He said some data points – such as only 10% of Durango workers earning the state’s minimum wage – could be interpreted as supporting raising the minimum wage or keeping it the same, depending on one’s perspective.
Koso said he is not excited about raising the minimum wage, describing it as a hammer where scalpels are needed. Still, he said he wants to better understand proponents’ views and plans to meet with members of Durango Forward, a group that urged City Council to raise the minimum wage and facilitate dialogue.
Durango Forward members asked council to raise the minimum wage by 15%, to $17.03.
“There's a lot to be said about the need for us to keep addressing what the living wage is here and how much of our city and county is living below the ability to have that normal American experience of working one job and being able to afford to live in the city that you want to live in,” he said.
He said the city should focus on improving livability through affordable housing, child care and transportation. Business strategies like tip sharing between front- and back-of-house staff, employee ownership programs such as at StoneAge, flexible hours and benefits like health insurance could also help support workers.
cburney@durangoherald.com
