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Missouri Chamber of Commerce wants voters to reject minimum wage hike

The Missouri state minimum wage will increase from $7.85 an hour to $8.60, after voters approved Proposition B in November.
Rici Hoffarth
/
St. Louis Public Radio
On Nov. 5, Missouri voters will weigh in on increasing the minimum wage and providing paid sick leave.

In the past 18 years, Missourians have approved two ballot measures boosting the state’s minimum wage beyond the federal minimum.

Interim Missouri Chamber of Commerce President Kara Corches is hoping voters won’t make it three. Her group, one of the largest organizations in the state advocating for businesses, is opposing what’s known as Proposition A.

“Our philosophy has really been driven by the principle of letting business decide in a free enterprise system,” Corches said on the latest episode of Politically Speaking. “We strongly believe that the bedrock of such free enterprise is allowing business owners to make their own decisions on how to run their workplaces.”

Proposition A on the Nov. 5 ballot would raise the state’s minimum wage to $13.75 an hour next year – and gradually move it up to $15 an hour by 2026. Once it reaches $15, the minimum wage will continue to go up based on changes in the Consumer Price Index starting in 2027. Currently, Missouri’s minimum wage is $12.30 an hour.

The initiative would also require employers to provide one hour of paid sick leave for every 30 hours worked.

One of the reasons Proposition A may be in a solid position to pass is that a combination of inflation and a competitive labor market prompted some companies to raise starting salaries well beyond $15 an hour.

While Corches said her group believes that “businesses should pay competitive wages and offer competitive benefits,” she added that the chamber “doesn’t think they should be under a mandate.”

“And as sure as you talk to voters from all over the state, you know what works best in the Bootheel may not work best in the Central West End,” Corches said.

Corches also said that the chamber has serious concerns with how the paid sick leave portion of the initiative is structured. She said that a business may have to spend money on an attorney to make sure it's in compliance.

“We don't want to make a small-business owner, who is really the backbone of our economy, their life any harder,” Corches said.

Previous minimum wage initiatives passed fairly easily, with proponents spending millions of dollars promoting their campaigns. Opponents, usually the Missouri Chamber of Commerce, spoke out against the proposals but didn’t spend much money to defeat them.

Asked if her group would organize a well-funded opposition campaign to defeat Proposition A, Corches said, “We don't have endless resources.”

“What we are doing is trying to use our resources wisely to educate members, educate voters, and also collaborate with other like-minded groups who you know we can align with and hopefully magnify our message by working together,” Corches said.

Unlike other measures on the Nov. 5 ballot, Proposition A is a statutory change. That means the General Assembly can change or completely repeal the proposal if it wishes. That hasn’t happened with previous minimum wage ballot measures.

“Our hope is that this doesn't pass,” Corches said. “But if it does pass, I absolutely think we would explore all options. This can be modified under the Capitol Dome if we could get enough legislative support for it. And that would take the education of our elected officials. But that is something that we will be evaluating essentially on Nov. 6.”

You can listen to a Politically Speaking episode from author Heather McGhee in support of Proposition A by clicking here.

Jason is the politics correspondent for St. Louis Public Radio.