A boost for workers
In a historic legislative session that saw Hawaii lawmakers allocate more than a billion dollars to Native Hawaiian causes, housing and other projects, a highlight for workers was the passage of House Bill 2510.
If signed by Governor David Ige, which is expected, the bill will raise Hawaii’s minimum wage from the current $10.10 an hour to $18 an hour. The increase would be phased in incrementally over the next six years, with the first jump coming on Oct. 1 when the minimum wage will go to $12 an hour. The rate will then increase $2 every two years until reaching $18 an hour on Jan. 1, 2028.
Some Hawaii business leaders have gone on record against the wage hikes, saying they will force them to raise prices and cut staffing. We think they are focused on the wrong number.
Rather than dwell on $18 an hour, let’s shine the light on $10.10 for a minute. Before taxes, a 40-hour work week at $10.10 earns $404 a week, $1,616 a month and $19,392 a year. Some of those business owners will probably have restaurant tabs this weekend that are more than $404.
How is someone in this state supposed to live on $400 a week? After covering firm expenses such as housing, taxes, utilities, car insurance and registration, how much is left to put food on the table and gas in the tank?
To get by, Maui’s low wage earners have traditionally worked overtime and taken on second and even third jobs. They pool resources and share living space. Multigenerational families fill homes to the brim and newcomers are thrilled to find tiny, shared rooms in converted garages they can afford to rent.
Working long hours is a staple of the American way. We have one of the hardest working cultures in the world and it’s driven by the premise that is how you get ahead in life.
At $10.10 an hour there aren’t enough hours in the week to get ahead. Ideally, a second job should be how you pay for your kids’ education or buy a house, not just survive.
By briefly pulling the plug on our economy, the pandemic showed Maui’s overworked and overemployed how much all those extra work hours subtract from family time, exercise, socializing and health maintenance.
Hawaii lawmakers have staggered the increases to give employers time to figure out how to make it work. Lawmakers have said there may be ways the state can help businesses meet the economic burden. And yes, we will probably be paying higher prices for our hamburgers and poke bowls.
Six years is a long time. The way inflation is going, $18 an hour in 2028 may not look any better than $10.10 in 2022, but at least it is a start in helping Maui’s hard workers get ahead in life.