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Jennifer Medina reports at the NYT that the the city council of nation’s second-largest city voted by a 14-1 margin to increase its minimum wage to $15 an hour by 2020, in what is perhaps the most significant victory so far in the national push to raise the minimum wage. Several other cities, including San Francisco, Seattle and Oakland, Calif., have already approved increases, and dozens more are considering doing the same.
In 2014, a number of Republican-leaning states like Alaska and South Dakota also raised their state-level minimum wage by referendum. The impact is likely to be particularly strong in Los Angeles, where, according to some estimates, more than 40 percent of the city’s work force earns less than $15 an hour. “The proposal will bring wages up in a way we haven’t seen since the 1960s," says Michael Reich. "There’s a sense spreading that this is the new norm, especially in areas that have high costs of housing.”
It's important to remember that the minimum wage hike comes at a significant direct cost to business — well over a $1 billion a year, according to the mayor's analysis — and it would be foolish to pretend that it won't lead to some job losses and business closures. Critics say the increase will turn the city into a “wage island,” pushing businesses away into nearby places where they can pay employees less. “They are asking businesses to foot the bill on a social experiment that they would never do on their own employees,” says Stuart Waldman, president of the Valley Industry and Commerce Association, a trade group that represents companies and other organizations in Southern California. “A lot of businesses aren’t going to make it. It’s great that this is an increase for some employees, but the sad truth is that a lot of employees are going to lose their jobs.”
(Score: 5, Insightful) by TheGratefulNet on Wednesday May 20 2015, @02:54PM
what we will see is bellyaching by companies who easily can afford to pay workers a living wage but will use this as an EXCUSE to downsize or outsoruce. like the 'papa john' assclown who makes billions from pizza (if you can all what they make 'pizza') and yet threw a hissy fit after obamacare was created as a law. I stopped patronizing places that went public with this poor excuse. the food makes me sick and their attitude (poor little rich boys) make me sick to my stomach.
this is the golden era for business in the US right now. they have everything their little hearts desire: custom laws in their favor, a job market that sucks (to put it mildly), all the world's cheap labor to use as you see fit (naturally letting locals go, since there's no loyalty to your locale anymore if you are an employer; only money counts, now).
any company crying the blues is being an outright liar. things have NEVER been this good for business in the history of mankind. and yet, each time we try to advance rights for actual people and workers, they throw a fit and bring all kinds of illogical noise into the discussion.
there are some businesses that may be impacted; but overall, life for workers is much more hellish than any business - ANY business.
and in the US, the republicans do all they can do widen the income gap (its their platform, afterall) and yet the dems sit there and offer token support, at best; mostly doing nothing but acting like they are the party of the people. they are not and have not been for decades, now. we have the extreme 'right' and the middle 'right'. there is not a single leftest, uhm, left, in the US political system anymore. at least, not one with any power to speak of.
"It is now safe to switch off your computer."
(Score: 3, Insightful) by Grishnakh on Wednesday May 20 2015, @03:36PM
this is the golden era for business in the US right now. they have everything their little hearts desire: custom laws in their favor, a job market that sucks (to put it mildly),
I have to disagree with this. A job market that sucks means less disposable income and less sales. Maybe some companies don't care about this, but a lot of companies, particularly small businesses, are not doing well with this economy. Small businesses generally don't have the resources and sales volume to take full advantage of cheap labor overseas, or they aren't in the business of retail sales, and with the extremely high jobless rate here in the US, their customer base is shrinking and spending less money. Businesses don't survive when they don't have enough paying customers.
Companies at the top probably love it because their competition is drying out, and the paying customers are flocking to them now, but this is a short-term situation; eventually, even they are going to see their sales dry up.