Column: Raising Hawaii’s minimum wage not a black-and-white issue

At the July 2016 Democratic National Convention, President Barack Obama said that “most issues are rarely black and white” and that “for progress to happen, we have to listen to each other, see ourselves in each other, fight for our principles but also fight to find common ground, no matter how elusive that may seem.”

Four months later, in his farewell address to the nation, the president reiterated his call for Americans “regardless of our party affiliation or particular interest, (to) help restore the sense of common purpose that we so badly need right now.”

President Obama was absolutely correct and his admonition even applies to a blue state like Hawaii. He understood that it is easy to take a position and advocate for a specific result. The hard work lies in finding solutions that are lasting and take into account the circumstances and concerns of all sides.

Since 2013, the Legislature has not shied away from some of the most heated policy issues confronting our state and nation. Same-sex marriage. Privacy and abortion rights. Renewable energy. Pesticides and chemicals.

The list goes on.

Some are frustrated that the Legislature did not increase the minimum wage on the heels of the last increase in 2018 that brought the minimum wage to $10.10. Their frustration is understandable. As is happening throughout the U.S., financial inequality is deepening. Many simply feel that they cannot make it no matter how hard they work.

This is why in 2017, the Legislature, led by a House initiative, enacted the state Earned Income Tax Credit — a tax change allowing lower-income individuals to keep more of their money by reducing their taxes. This is widely considered one of the most effective methods to reduce income inequality and poverty.

There are other potential legislative avenues to restore equity. In addition to increasing the minimum wage, advocates have asked us to mandate a living wage, paid sick leave, paid family leave, and government-run retirement savings programs. All are intended to improve employees’ financial circumstances. Individually, each proposal is a significant commitment with major economic and social policy implications.

The proposal to increase the minimum wage sparked significant employer concerns with the increasing cost of workers’ fringe benefits. Hawaii is the only state that requires employers to provide nearly 100% subsidized health insurance for employees who work at least 20 hours per week. Hawaii’s insurance commissioner projects that by the year 2026, the annual premium for one employee may double to $14,000.

Increasing the minimum wage may not necessarily improve an employee’s overall finances if an employer responds to a higher minimum wage increase by cutting hours or even jobs. Employees who are then faced with paying for their own health insurance could be worse off financially.

The House’s intent was to preserve the guarantee of employee health care coverage as premiums increase. It would have increased the minimum wage for all workers and preserved health insurance. The proposal upheld two key Democratic values of preserving access to quality health care and reducing income inequality.

As President Obama said, most issues are not black and white. The implications surrounding major policy decisions must be debated in the Legislature. The general public deserves reasoned decisions and we should embrace Obama’s call to find common ground so that Hawaii will advance for all of us.