July 23, 2015 6 Comments
The Actual Minimum Wage is $0.00!
Why? Because that’s what you earn when you do not have a job, or business (with customers, I suppose)
The Wall Street Journal reports that, on Wednesday, as predicted, the panel convened by Governor Cuomo to study fast-food wages will formally recommend paying workers statewide $15 an hour — a substantial raise that’s nearly double the current rate of $8.75. The only step left is an okay from Acting Labor Commissioner Mario Musolino (which he’s expected to give), and then Cuomo can move forward (which there’s every indication he will) regardless of how the Legislature feels about it. So it looks likely that a big raise will come to New York’s fast-food workers.
Briefly. Because the actual minimum wage is zero. Seriously, the franchisees are screwed. So is anybody who gets defined as being ‘fast-food.’ But you know who will benefit? Fast-food restaurants that are directly owned by a corporation or family […]
Yup. Exactly. Why would you hire a surly employee for $15.00/hr, when for say $13.00/hr* you can have a robotic vending machine that will work 24/7 without breaks, complaints, making fewer mistakes, and never not showing up for work? Huh? Why??
My friend Jack Curtis adds this:
This is one more such move in what appears a developing chain, following the initial action in Seattle. All of it appears as a reaction to a rather perfunctory “nation wide” campaign by the Service Employees’ International Union (SEIU) after that body proved unable to organize fast food. Conclusion: If the union can’t do it, the Democrats will.
The move has some interesting aspects. It applies to chains with over 30 locations in state. An obviously prime target: McDonald’s. With so large an increase in labor costs, Big Macs prices must rise significantly.in a time its sales have been dropping. That’ll teach ’em to resist an SEIU organizing drive!
What favors will a significant fast food price rise provide the customers? Last time we read: “How to Stimulate an Economy,” hefty price increases were somehow omitted. We note too that a lot of fast food customers are lower income folk who really can’t afford pricey restaurants. Aren’t these supposed to be the Democrats’ favorite folk to help?
Wasn’t in my copy either, sad to say.
In other economic news, Steven Heyward at the Powerline Blog notes:
Did you happen to catch this little detail in yesterday’s news about the old A & P grocery chain filing bankruptcy:
More than 90% of A&P’s workers are union members, with 35 different collective-bargaining agreements that A&P said require benefit increases that are unsustainable. A&P said it would try to negotiate immediate changes to the contracts to prevent “catastrophic” results on sales, but otherwise will seek court orders to force the contract changes.
Gee: I wonder if those labor agreements have something to do with the chain’s uncompetitive cost structure and declining business prospects.
Meanwhile, from our “Don’t Look Now But. . .” file, the Chinese stock market seems to have stabilized after a significant correction that could be confused for a crash. But then there’s this little detail reported yesterday:
China may have the world’s second-biggest stock market after the U.S., but at one point during a roller-coaster ride for investors this month only 93 of 2,879 listed companies were freely tradable—about the same number as trade in Oman.
As always, read the entire articles, there’s more than what I copied.
* NON-scientific wild a** guess. Likely much too high, really.