Businesses may ask Mo. legislators to remove minimum wage index

KANSAS CITY, Mo. (AP) -- Missouri voters overwhelmingly approved a minimum wage increase just last week, but some business groups already want to tweak the measure.

The groups say they are concerned about language that allows the minimum wage to rise each year with inflation, and are thinking about asking legislators to remove the section known as the inflationary index.

"I think that indexing will be a terrible thing for the Missouri economy in the next few years," said Brad Jones, Missouri state director for the National Federation of Independent Businesses.

Supporters of the index say having yearly increases will keep the minimum wage from staying flat like it has for the past decade. But those opposed to the index believe automatically raising the minimum wage each year will make labor costs prohibitive -- leading to layoffs, price increases in products and even the closure of some businesses.

The minimum wage in Missouri will increase from $5.15 to $6.50 an hour starting Jan. 1.

Sara Howard, spokeswoman for Give Missourians a Raise, doesn't think lawmakers will consider removing the index because nearly 76 percent of voters statewide favored the measure.

"Considering the overwhelming majority by which Missourians approved the minimum wage indexed to the cost of living," Howard said, "it sends a very clear message to Jefferson City that voters are frustrated our elected leaders haven't done something to address the needs of working people who are struggling to make ends meet."

Since the measure isn't a constitutional amendment and only changes state law, lawmakers could alter it in the 2007 session. Minimum wage supporters didn't have enough time to collect the required signatures to present the measure as an amendment.

Sen. John Loudon, a St. Louis County Republican, said he would consider legislation that addresses the index. Loudon, who heads the Senate Small Business Committee, said the index could create problems for businesses in the future.

But Gary Marble, president of Associated Industries of Missouri, which led opposition to the measure, said he doubts legislators will do anything to alienate voters. Instead, he thinks lawmakers will appoint a committee to study the measure.

Gov. Matt Blunt, who opposed the index, also believes the decision of voters will stand.

"The governor believes Missouri voters have spoken," said Blunt spokesman Brian Hauswirth.

The minimum wage in Missouri could rise to around $8.40 an hour in 10 years, if the past decade's average annual increase of 2.6 percent holds true for the consumer price index.

Missouri is one of 10 states that now have minimum wage levels indexed to inflation.

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Information from: The Kansas City Star, http://www.kcstar.com