Jackson’s minimum wage plan may not add up in budget

The minimum wage proposal was approved last year

The ordinance approved by the council initially raised the minimum wage from $7.25 to $8.75 per hour. The minimum wage is set to increase to $9.70 per hour by October of this year and to $10.65 by October of next year.

Jordan, who is performing a comprehensive pay plan for the city, said when the city increased the minimum wage for its lower tier employees by $1.50 per hour, it began to bump some of them up to near the level of their supervisor pay level.

Jordan said it costs the city roughly $1 million for the initial minimum wage increase from $7.25 to $8.75 with fringe benefits included. He said to give all 1,800 non-exempt employees a $1.50 per hour wage increase would cost the city an additional $6 million-plus a year.

Jackson Mayor Tony Yarber said changes will have to be done in phases.”We will have to look at how we bring salaries in line and get us to the $10.65 set by the council,” Yarber said. “It’s a phase plan and how that looks depends on this body (council).”

Yarber’s Chief Adminstrative Officer Gus McCoy said a question the city has to consider is whether to stick with the plan adopted and whether the city can afford the minimum wage increase.

Clarion Ledger
5/28/15