Economic Census Shows Gross Reciepts and Operating Expenses that Can More than Accomodate the Increase in the Minimum Wage
The testimony from many Guam Business Owners in opposition tell a story of struggling businesses on the brink, who cannot afford the personnel costs, and will not remain competitive or in demand if they raise prices. The table below demonstrates a much different reality. The table below demonstrates that the private sector can afford the increase. Don't let greed lie to you, let the information provided by the Economic Census from 2012 tell you the truth.
If you look at the gross sales in comparison to the operating expenses you will find that businesses regardless of establishment size are far from being in the red, and their margins are healthy as a whole.The table below is broken down by establishment size and industry. The top group shows the cumulative amounts for each sector for all establishment sizes, and then is followed by sector breakdowns per establishment size.
In comparison to the last economic census, the margins have increased, and the percentage of payroll costs to gross receipts has dropped. When compared to the average hourly wage for sectors like retail and accommodations & food services (the sectors that employ the majority of impacted employees), the rate of growth for gross sales and profits has not been proportionate to the growth in pay for occupations within the same sectors.
http://bls.guam.gov/sites/default/files/attachments/CES_Historical_Summary_1993-2013.pdf
http://bls.guam.gov/sites/default/files/attachments/OES_2012-05.pdf
http://bls.guam.gov/sites/default/files/attachments/OES_2007-05.pdf
This is all proof that the poor are getting poorer and the rich are definitely getting richer. It is also proof that there is definitely a buffer with in each sector regardless of establishment size to accommodate a 95 cent increase in hourly rate annually over the next three years.
Note: Operating Expenses Definition per Census -
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Operating expenses include payroll, employee benefits, payroll taxes, cost of supplies used for operation, depreciation expenses, fundraising expenses, contracted or purchased services, and other expenses charged to operations during 2012.
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Expenses exclude cost of goods sold, income taxes, and interest for wholesale establishments, outlays for the purchase of real estate, construction and all other capital improvements, funds invested, assessments or dues paid to the parent or other chapters of the same organization and for fundraising organizations, funds transferred to charities, and other organizations.
