Issue link: http://winesandvines.uberflip.com/i/670981
16 WINES&VINES May 2016 WINE INDUSTRY NEWS S acramento, Calif.—All businesses in California will be required to in- crease minimum wages, capping out at $15 per hour in 2022. On April 4, Gov. Jerry Brown signed legislation into law that will gradually raise the state's minimum wage during a six-year period; small businesses with fewer than 25 employees may receive postponements. The new structure will apply to all Califor- nia businesses, not just agriculture. Napa Valley Vintners communications director Patsy Mc- Gaughy said that while the association has remained neutral on the issue, most Napa Val- ley wineries already pay workers at the ele- vated level. She added, however, "When you raise the wage floor it has an effect all the way up the ladder. In Napa, most of the work done here for pruning and harvest is done by hand, and we already pay those wages." McGaughy noted that 95% of NVV member wineries are family owned, and fewer than 20% produce more than 10,000 cases annually. Brad Goehring, chairman of the state gov- ernment affairs committee for the California Association of Winegrape Growers (CAWG), was on the Assembly floor March 31, when Senate Bill 3 was passed. The owner of 450 acres and manager for some 10,000 more in the Lodi District, Goehring told Wines & Vines he was texting key assemblymen with talking points during the debate. He was not happy with the outcome of the vote, saying he foresees "destruction." "Grapes can be sourced elsewhere. This re- verberates all the way down," he said, adding that "hurtful" regulatory measures including Cal/ OSHA rules have proliferated in recent years and are increasing pressures on the ag industry. "We're going to mechanize where we can," Goehring said. With vineyard labor availability already short, "We're going to have to swap labor for mechanization. Every commodity has its limits of elasticity." For example, Goehring said, "This winter I bought a berm sweeper for about $6,000. It will replace about 5% of my workforce. I will order leaf remover machines this week; each will replace a crew of 25 in a six-week period. More growers are using machine harvesting." The vineyard owner said he expects Cali- fornia growers to step up funding to fast-track research on vineyard machines. "We've out- grown the burden of labor," the result of cost, productivity and regulation. He added that some wineries buying contracted grapes would have to give and take: Demanding hand har- vesting, for instance, may soon be outdated. TOP STORY Will Wage Hike Affect the Wine Industry? WINE INDUSTRY WAGES Number of Employees Average Annual Salary California 32,220 $52,953 Oregon 2,655 $30,157 Washington 3,263 $30,242 United States 56,690 $41,759 Source: U.S Bureau of Labor and Statistics, 2014.