Tuesday, November 29, 2022
News for Independent BusinessMcDonald’s Labor Fight Shows Why $15 Minimum Wage Doesn’t...

McDonald’s Labor Fight Shows Why $15 Minimum Wage Doesn’t Work

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Anytime Elizabeth Warren chimes in on an issue I must first start my deep breathing exercises, try not to stare into her fake-Indian eyes, and convince myself that her presence on the political stage is just a dream, or perhaps the proverbial nightmare. In an attempt to make this attack on her non-personal, I just have to say that I was told that women, the kinder and gentler of the sexes, would be a voice of reason and peace as they come to grasp some of the highest political positions in the land.

One would be hard pressed to find an image of this senate woman that depicts a countenance of not having a mean faced, clipped haired appearance of one who wipes lithium-induced spittle from the edge of her mouth before a photo op. Too harsh?

There is a method to this madness. The typical back and forth between management and labor (the word labor brings up connotations of the Communist Manifesto) with one side yelling sabotage and the other wailing about ethical concerns. Who cares? It’s all about minimum wage and in this case a $15 minimum wage for fast food workers.

Don’t get me wrong. I have no beef with fast food workers. I was once one. The difference being mine was a way to get through high school, and today’s worker is attempting to support a family of four. In a Bloomberg piece, Warren was quoted as saying, “It’s the board’s job (National Labor Relations Board) to give workers a fair shake and these two members can’t do that.” Warren, a Democrat from Massachusetts supports “Fight for $15.”

It’s unfortunate that those fighting for a higher minimum wage hold their hopes in increased government regulation, which in a Trump administration is not likely to happen. One must also remember that as survival is the basic tenant of life, it is also the bottom line of a for-profit business. I know profit can be a dirty word for those in the labor camp, but I wonder if they understand that their expense (wages) are deducted from sales before they hit the bottom line.

If a business does not make a profit, there will be no business, hence no minimum wage jobs. But then there is, of course, the welfare safety net. Regardless of all the efforts by the do-gooders, most of whom have never run a hotdog stand, but are somehow experts in entrepreneurship, there appears to be a disconnect in raising wages and actual take-home pay. Take the glorious city of Seattle as an example.

As companies look for ways to cut costs, Seattle’s $15 minimum wage law may be hurting hourly workers instead of helping them, according to a new report. The minimum wage increased from $9.47 to $11 per hour in 2015, and to $13 in 2016, according to the report. Referencing the USA Today, the study, which was funded in part by the city of Seattle, found that workers clocked 9% fewer hours on average, and earned $125 less each month after the most recent increase. That is a significant hit if you are a fast food worker. Government and politicos only care on the surface, while businessmen and woman care wholeheartedly. This is why they will not lose this fight. Despite the survey’s results, the Alice in Wonderland Mayor of Seattle, Ed Murray, said he stands behind the $15 minimum wage law, Reuters reported. Of course he does.

6 COMMENTS

  1. As a small business owner who started with 1 and now has 80+ employees, many who make well over $15 and a few at $10-15, I am fully opposed to $15 an hour. You see, those who come in at $10 have little to no knowledge, very few if any tools and I mentor them, train them and most often give them merit increases as their value increases. This is capitalism at it’s best and works wonders for those who WANT to become better, who want more and who strive to be the best they can be – with that, comes $15 and more….

    • Horst,
      “You can’t fix stupid!” Most who support this movement are the same people who might be book smart but lack street smarts.
      Lead by example with integrity and ethics.

  2. “The difference being mine was a way to get through high school, and today’s worker is attempting to support a family of four. ”

    And like Horst points out, he’s also training people to be more useful employees, who will eventually command a higher wage. Anyone raising a family of four should be well beyond being worth more than $15/hr…

  3. Minimum wage should be tied to age somehow. I have employees that come in and have never had a job before. We have to teach them how to punch in, how to dress and deport themselves. They really aren’t productive employees until they’ve been there 12 months or longer. If they only work summers that could take two years or more. If a person is 21 and trying to support a family they should be able to demand a higher minimum wage. A kid coming in with no work experience is a project not a producer. Either make it an age based system or an experience based system. You can’t believe some of the stupid mistakes my rookies make. After a couple years they are worth more. In the beginning I’m doing them a favor employing them.

  4. What no one seems to talk about is the issue of those already making greater than the new proposed minimum wage (whatever that could become). As a business owner, I already pay our workers much more than $15/hour because they’re highly skilled. I agree that first time job seekers or (yet) unskilled hires are projects rather than producers. A terrific point stated perfectly! In our field I have no need for either, but many companies do. What, then happens to staff making just a bit more then the new minimum wage? It seems to me that employers will then need to increase those wages proportionately. Why should someone work hard only to be paid little more then another just starting out? It stands to reason that wages must then increase across the board because more experienced staff will demand higher pay. The net result will be the same difference between experienced versus inexperienced pay and simply shift payroll numbers higher. In order then to maintain profitability and overhead, companies will be forced into various solutions including staff reduction and higher retail prices. Any way it’s framed, I believe the result will be increased unemployment which will hurt the very people a new minimum wage policy is meant to help.

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