Posted on 07/30/2015 4:14:55 PM PDT by Oldeconomybuyer
New York's new $15 minimum wage for fast food workers applies to more than 100 brands doing business in the state. The only criteria: They must operate in at least 30 locations nationwide.
Laura Jankowski owns three Tropical Smoothie Cafe franchises on Long Island. The brand has 16 locations in New York and more than 400 nationwide.
Research suggests that most fast food workers in New York are 22 or older. But Jankowski says the vast majority of her employees are high school and college students. Most earn $8.75 an hour but her shift leaders earn $9.75.
The new higher minimum wage -- which will be bumped up every year starting in 2015 until it reaches $15 -- means Jankowski will have to raise prices and likely hire fewer employees.
She said she already has increased prices due to the previous wage hikes plus increases in her food and rent costs.
"There's not much more wiggle room [to increase prices without losing customers]," she said. "I'm going to have to cut crew."
(Excerpt) Read more at money.cnn.com ...
Everyone.
Ok then why not cut now? Are some of you people unproductive now? Or does raising the minimum wage improve productivity? Which is it?
I’d have to question how “well-meaning” those groups really are.
This was TOTALLY predicted beforehand. We said it over and over. It is the natural product of increasing labor costs.
Fake story. No way they report this on CNN.
When wages are lower, the managers can have a larger crew pool, because people don’t have to be peak producers in order to be affordable. A larger crew pool gives the managers and other workers more flexibility and less stress.
When wages go up, either the cost of what they’re selling has to go up, or the employees have to earn more (get more work done in the same amount of time). Usually both — prices go up, and only the most effective and efficient workers stay on.
This is why raising the minimum wage is usually hardest on young black males. When the minimum wage is high, they often don’t have the skills to earn enough to match their wage, and no one can afford to take them on and train them so they can learn those skills.
Minimum wage hikes generally result in fewer “entry level” kind of jobs, both because there are fewer of those jobs to start with, but also because a higher percentage of people who already have the basic skills to move on will stay at entry level, because there’s not enough financial incentive to move up. So the kids who most need those jobs — which, in our culture, is mostly young black men who aren’t getting those basic skills at home — can’t find them.
Now, we all know what the consequences will be, the chains will automate, they cannot bear the profit squeeze and also stay open. The Unions will benefit because they DO NOT CARE about this segment, they want all of their contracts and proportional union dues to be raised by government fiat (no dummy, not the car!) There will be grumbling, but the automation will keep prices low and customers coming. What is a few more on the unemployment line?
He is saying that he will only be able to retain his top performers and will in the future only hire people who come in at the top of their game.
No more trainees. No more being able to cut someone slack because they are having a hard time outside of work. No more being able to take an injured worker back on light duty. No more having more then the bare minimum of people on during the down hours. And this will probably result in short shifts for many. Rather then working an eight hour day you will work six coming in just before the breakfast rush and leaving right after the lunch rush or coming in just before lunch and leaving right after dinner.
Ok then why not cut now? Are some of you people unproductive now? Or does raising the minimum wage improve productivity? Which is it?
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Your logic is correct. What she will expect is fewer people carrying a larger work load but if they are already working at or near capacity there will be very little or no slack to pick up. It’s a lose, lose situation for both employer and employee.
It means NYC will be even more of a city of rich and poor with no middle class other than government employees.
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