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NewsJanuary 5, 2011

Measures to improve Missouri's business climate were announced Tuesday by the Missouri Chamber of Commerce and Industry in hopes the 2011 legislature will adopt the proposed reforms.

Measures to improve Missouri's business climate were announced Tuesday by the Missouri Chamber of Commerce and Industry in hopes the 2011 legislature will adopt the proposed reforms.

The "Fix the Six" agenda outlines policy changes to promote economic growth and create jobs, according to Daniel P. Mehan, president of the Missouri Chamber.

The six priorities identified are employment law reform, workers' compensation reform, tort reform, capping corporate franchise taxes, eliminating the minimum wage escalator and unemployment insurance reform.

"These are all business climate issues," said John Mehner, president and CEO of the Cape Girardeau Area Chamber of Commerce. "They looked at what could we agree with that will not affect the budget, because we know we're under water big time in the budget, but could make us more business friendly so we have a chance of recruiting additional jobs to this state."

Missouri chamber officials say these measures will not have a fiscal effect on state revenue and that they could be the most important economic development efforts lawmakers make this year.

"These are things that companies will look at and say: these are things that if they fix, will make us more likely to do business there," Mehner said.

Proposed reforms in the areas of employment law, workers' compensation and torts are a result of a series of what Mehner called "bad court decisions."

Those likely to be opposed are trial lawyers and some union representatives because their wage contracts are tied to minimum wage escalators, said Mitch Robinson, executive director of Magnet.

Missouri's minimum-wage law allows an automatic inflation adjustment based on increases in the cost of living measured by the Consumer Price Index.

"I don't know of a business organization or a business that's not opposed to the escalator. Until about the last two years, it's been going up," Mehner said.

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Missouri's 2011 minimum wage is $7.25 per hour, unchanged from 2010.

"Our position has always been we are comfortable with the state of Missouri having the same minimum wage as the federal government," Mehner said. "We feel like anything higher than that could be a potential disadvantage for businesses in the state of Missouri. It could force them into not hiring as many minimum-wage people or keeping the workforce they have and requiring more hours out of those people."

Mehner said most area jobs aren't minimum wage, but the ones that pay minimum wage do so because that's what businesses can afford to pay for that type of work.

"They are usually entry-level, low-skill, service-type positions, usually filled by people who are willing to work for less money because they're just doing it on a part-time basis," Mehner said.

The Cape Girardeau Area Chamber board of directors is reviewing the "Fix the Six" agenda and is expected to take action on whether or not to endorse the agenda at its next meeting.

Statewide organizations supporting the measures include the Missouri National Federation of Independent Businesses, Associated Industries of Missouri, Missouri Merchants and Manufacturers Association, Missouri Grocers Association, Missouri Restaurant Association and Associated General Contractors of Missouri.

mmiller@semissourian.com

388-3646

Pertinent address:

1276 N. Mount Auburn Rd., Cape Girardeau, Mo

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