Business leaders peppered the state’s top politicians with questions about mandatory paid sick leave and raising the minimum wage Tuesday.
Gov. Peter Shumlin, House Speaker Shap Smith, Senate President Pro Tem John Campbell and Lt. Gov. Phil Scott took turns addressing the concerns of the business community at the Vermont Chamber of Commerce’s annual legislative luncheon.
New labor proposals were added to a list of perennial issues topping the private sector’s agenda for the 2014 legislative session. Vermont’s tax climate and business regulations, as well as health care, tourism funding and workforce training were also discussed.
Shumlin was first on the hot seat. He took questions from the Chamber’s board president, John Valente, and members of the audience at the Capitol Plaza Hotel and Conference Center in Montpelier.
Smith, D-Morristown, and Campbell, D-Windsor, followed in a joint panel. The question-and-answer sessions concluded with Scott.
Their responses to several topics are summarized below and video of all three sessions is attached.
PAID SICK LEAVE AND MINIMUM WAGE
There was widespread agreement that employees should not go to work when they’re sick — especially if they are employed in the food service or health care industries. But all four of the politicians were noncommittal about how to mandate paid sick leave for workers.
H.208, now in the House Committee on General, Housing and Military Affairs, H.208, would require that all employees accrue paid sick leave for each 30-hour week they work.
The paid leave policy discussion was tied to debate over raising the minimum wage. The Legislature recently tied the minimum wage to the Consumer Price Index.
Shumlin: “I am going to wait and let the legislative debate happen before I pass judgement (on earned sick leave),” Shumlin said. “We don’t want to destroy jobs as we try to correct something that we would like to fix,” he said.
As for the minimum wage, Shumlin said the benefits of helping to lift people out of poverty and reduce reliance on government assistance must be weighed against the disadvantage it could pose to businesses in a competitive environment.
Smith: Smith said earned sick time is a fairness issue between employers with different policies. Testimony from some small businesses has been compelling, he said, but it hasn’t swayed his view on the matter. “Even if we do not pass a bill this year, this is probably not an issue that’s going away,” he said. “I would like to see us … move the issue forward.”
Smith said he would prefer to see the minimum wage raised at the national level.
Campbell: Campbell is concerned about the impact of mandatory paid sick leave on the business community. He urged restraint. “Before I would recommend to the Senate to jump on this, I would want to make sure it wouldn’t create an adverse affect on our businesses,” he said. Campbell said he would want to be sure that any new sick leave or minimum wage requirements would not hurt businesses struggling to recover from the recession.
Scott: Any mandate, including paid sick leave, takes away businesses’ flexibility, and flexibility is the most important asset to businesses, Scott said. For businesses that already take good care of their employees, he said, H.208 is counterproductive.
“I just think it’s one more thing that gets in the way of us being able to do what we do best, and to do what we do best for our employees.” Scott predicted any hike in the minimum wage would “ratchet up” payroll expectations across the board.
PAYING FOR UNIVERSAL HEALTH CARE
Shumlin: The governor repeated his mantra that the current health care expenditures are unsustainable and hinder economic growth. “Let’s remember that the bar here in America is exceedingly low,” he said, when comparing American health care outcomes and costs to those of other developed nations. Creating a universal health care system is more a matter of reconfiguring costs, he said, as opposed to taking on new obligations. Reform in that direction will boost the state’s economy, Shumlin said.
Smith: Smith said he will be ready to talk about ways to finance health care reforms after the Legislature has an opportunity to assess cost estimates for a single payer system.
He’s certain of one thing however: “I do not think a single-payer system that is financed solely by a payroll tax is one that could work,” he said.
Campbell: If a single-payer system can save Vermont businesses and individuals money in the long run, Campbell said he’s all for it. “But if it costs far more than what we anticipated, I think we need to be ready to go in a different direction,” he said.
Campbell does not support a proposal by Sen. Peter Galbraith, D-Windham, to institute an across-the-board payroll tax.
Scott: The lieutenant governor said he’s pledged to remain objective about the prospect of statewide single-payer health care, but he’s eager to see Shumlin’s plan. “I would ask the governor to present his plan now as opposed to later, so Vermont can take a look,” Scott said.
He said he hopes the state will not rush to implementation as it did with the troubled rollout of the health care exchange.
INTERSTATE ECONOMIC COMPETITION
Shumlin: “States have been cannibalizing each other … for 20 years,” Shumlin said in reference to tax credit programs other states use to lure businesses. He said in his conversations with businesses considering a move to Vermont, tax credits are one of the last topics of conversation. Business leaders want to know first about Vermont’s workforce, education, electric rates and quality of life, he said. New York’s tax credits can’t compare with the draw Vermont offers, he said. “Their schools aren’t as good, their quality of life is not as good and their locally grown food is not as good,” Shumlin said. “So we’re winning. So cheer up. We’ve got a good thing going here.”
Scott: “What I’m hearing is we have a crisis in Vermont in terms of affordability.” Scott said he doesn’t believe the Legislature has rallied around economic growth to the extent it could. Vermont needs something other than quality of life, he said, to lure growing businesses to the state.
