NORWICH – In response to Democrat Assemblyman Sheldon Silver’s proposal to increase New York State minimum wage from $7.25 per hour to $8.50, opinions differ among many city employers and workers regarding the impact it would have locally.

While city area employers said they can see both sides of the argument, opinions of the overall effectiveness that a wage increase will have in stimulating the economy vary. According to the U.S. Census Bureau website, 19.5 percent of the city’s population was at or below poverty level in 2010. This is higher than the 14.2 percent state poverty rate, and the national rate of 13.8 percent – observations that are fueling many legislators to follow up on Silver’s proposition and getting mixed feedback in the area.

Human Resources Director for the City of Norwich Deborah Deforest said raising pay for the 40 minimum wage employees who work for the city would have pros and cons from a business standpoint alone. While on one hand, it would be easier to recruit new employees, she said, there are also concerns about rising costs that are contingent on employee wages, including benefits and retirement. Perhaps the biggest obstacle, she added, would be the diminishing pay gap between experienced workers and newly hired employees.

If minimum wage were to go up, Deforest would be hiring new workers at a pay rate close to that of more experienced city employees. “The difficulty would be that compression,” she said, citing that many city workers are also part of a union and as wages of new laborers go up, there will likely be demand for higher pay of veteran employees. “It will definitely make negotiations with unions more difficult.”

“I’m all for it ... If it improves peoples’ lives and the culture, why not?” said Garf’s Deli owner John Stewart. “People need to make a living and you can’t begrudge them for that.”

Garf’s Deli employs between 8 and 11 people year-round and while Stewart said he pays most employees above the current minimum wage, his concerns regarding compression align with Deforest’s and he admitted that if passed, the new wage legislation would also have an impact on his food prices in order to maintain a profit margin.