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May 2016 WINES&VINES 17 WINE INDUSTRY NEWS CAWG doesn't make recommendations, he said. "We look for solutions and educate" mem- bers. "Today on the floor, three assemblymen referred to ag wages as 'slave labor.'" But this increase is not just about minimum wage. "It will raise prices for everyone and drive some business out of state. It will more than double the federal minimum wage." Earlier, CAWG president John Aguirre com- mented that skilled vineyard laborers already earn more than California's current $10 per hour minimum. In the Lodi District, vineyard labor typically gets $11 to $12 per hour. The new measure is, he said, "A very, very big deal. It affects all companies. There is a delay in the start date for smaller companies, but no blanket exemption." Representing a 50% increase in minimum wage, the law will not just affect entry-level workers but will go all the way up the chain, he said. If a different proposal, Assembly Bill 2757, should pass and be signed into law, it would eliminate the current agriculture over- time exemption, requiring ag business to con- form with the prevailing overtime requirements that apply for most hourly paid jobs (i.e., the eight-hour day and 40-hour week thresholds would apply). Aguirre compared California to Europe, where labor costs are high. "With less ability to lay off workers, companies are resistant to hir- ing, and there are stubbornly high unemploy- ment rates," he reported. "I'm fearful of where we're going. If this goes into effect, we'll see big changes. There needs to be continual advances in mechanization, but only businesses of a certain size can afford it. Equipment can be too expensive. We'll see small growers stay small while larger companies get larger. There will also be more reliance on farm labor companies," he predicted. "It's clear that $15 per hour will compel change." In an industry that prides itself on sustain- ability, "There are issues of social equity. No- body knows where to draw a precise line between an exploitive starting wage and one that is appropriate for workers and employers," Aguirre said. "When establishing a floor, it seems to us that $15 is too high. "Potentially, this could do serious damage to the California economy and agriculture." Nat DiBuduo, president of Allied Grape Growers, also predicted an overall negative effect on agriculture. "Labor's hard to come by, and the economic impact will make it more challenging for farmers. There will be (wage) increases all the way up the line," he said, in a sort of reverse domino effect. Of course, grape prices vary by growing area. DiBuduo pointed out that San Joaquin Valley growers may get $300 to $400 per ton vs. thousands per ton for North Coast or Central Coast grapes. In the San Joaquin Valey, 99% of vineyards are machine harvested, he said. "If you already pay more than minimum wage to the entry-level employees, their su- pervisors will also expect more," DiBuduo emphasized. Moving the minimum wage won't improve the labor supply, DiBuduo said. "When cherry harvest starts, there's not enough labor for grapes. We see competing crops for the same labor force. What you've got is what you've got." —Jane Firstenfeld AVERAGE WINERY SALARIES Average Annual Salary CEO $288,719 Winemaker $98,756 Vineyard manager $91,103 Sales representative $66,660 Lab technician $41,713 Cellar worker $39,510 Tasting room staff $33,488 Source: Wine Business Monthly 2015 Salary Survey StaVın Inc, P.O.Box 1693, Sausalito,CA 94966 (415) 331-7849 f (415) 331-0516 stavin.com Is a barrel the only way to age a fne wine? Barrel makers would like you to believe that. They'd also prefer you not know that we've fne-tuned the art of oak infusion so deftly that in many blind tastings, experts chose our favors over wines aged in French oak barrels. Surprising, but true. If you make a special wine and are willing to think outside the barrel, now would be a good time to give us a call. ® © 2016 StaVin Inc.