Pasadena Chamber; Restaurant Owners Reflect on Minimum Wage Increase

(Third from Left)Paul Little, elective director of Pasadena Chamber, was not happy with council’s decision Monday night. – Photo by Terry Miller / Beacon Media News

By Terry Miller

A rather contentious, long-winded, as well as marijuana infused council meeting Monday didn’t stop councilmembers from raising the minimum wage despite huge opposition from the business community. However, many, including POP and the 2019 Rose Queen, vehemently stood their ground for the $15 minimum wage increase.

Expounding the curriculum vitae of the city’s consultants who were handsomely rewarded for their sometimes conflicting studies, City Manager Steve Mermell only seemed to add insult to the already injured restaurant industry in Pasadena.

The two consultants, economists Michael Reich and Edward Leamer, offered opinions of the impact of the city’s 2016 minimum wage ordinance. Both these reports have been on the city’s website for some time; however the regurgitated diatribes did little to appease the average restaurant owner who faces massive operating cuts.

“I think we made it pretty clear there would be employment and opportunity costs to raising the minimum wage at the accelerated Pasadena rate. The city’s own economic consultants’ data showed there have been job losses as a result of the 2016 increase and we risk the loss of more than 1,000 jobs in the next two years and the potential of business closures is real and immediate. Even with these facts before them, and the testimony of leaders in the business community and adversely affected business operators in the home healthcare, hospitality and non-profit sectors, the City Council chose to move ahead. I hope our locally owned small businesses can adapt and survive. Unfortunately, as we heard last night, the only way for them to have a future here is reimage service delivery, which means a dramatic loss of jobs for Pasadena and Pasadena residents,” Paul Little, executive director of Pasadena Chamber of Commerce, told Pasadena Independent.

Robin Salzar, owner of Robins Woodfire Grill in Pasadena, has been deeply committed to helping his fellow restauranteurs battle the minimum wage increase.

In a written statement, Salzar told Pasadena Independent that:

“The discussions were very passionate on both sides. Peter Dreier, Ed Washatka and POP did a very good job in pushing their agenda and I think that Paul Little and the Chamber of Commerce were superb in presenting the real deal numbers that are affecting our small businesses and our employees. Both of these efforts were arguably for nil as I believe that most of the council members already had made their decision long before the meeting.

“Whatever was paid to the two economists was a total waste of Pasadena tax payer money. Same data but different results. Dr. Reich was obnoxious and denigrating towards Dr. Leamer, the other economist, and presented a self-admitted incomplete survey that lacked the number of hours that were reduced in the workforce. Just stating a reduction of jobs without listing the number of hours reduced makes that argument meaningless. Most small businesses have reduced hours more than they have reduced individual employees. Councilmember Hampton was right in asking Dr. Reich to stop criticizing Dr. Leamers survey and to get on with the explanation of his own survey. 

“Councilmember Tyron Hampton demonstrated his strong leadership skills by voting his conscience and not taking the easy way out by voting the ‘safe’ way. His passion was real and heart felt for the youth in his district and admitted to the gallery that ‘you may not like my vote’ but voted his heart. 

“Councilmembers McAustin and Masuda were right in questioning what type of hardships the local small businesses would have to deal with if the timeline stayed the same. 

McAustin’s motion to put the small businesses with 25 or less employees onto the state timeline was a well thought out compromise that would have had an immediate positive impact on the survival of these businesses and the retention of their employees. To be struck down by two quick votes without any form of discussion was a complete disservice to every small business and employee in Pasadena. 

“Councilmember Gordo said that the city was doing well financially and because of that so was the business community. I’m paraphrasing here but how does that relate to the small businesses in Pasadena. The individual testimony from the local restaurant owners who either wrote letters to the council or spoke at the podium said something completely different. The restaurant Victor said that his father worked at for 50 years, Ranchero, shut down last year. 

“Frankly the mayor is clueless to the issues and needs of the small businesses in Pasadena and he and some of the other council members have absolutely no business acumen. I’ve lived in Pasadena for 37 years and I have never seen such a blasé detachment from the reality that every small business deals with on a daily basis.”

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