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Thursday, July 23, 2015

$15 Minimum Wage in NY: Burger Flippers of the World Unite!

     It's only fitting that NYC fast food workers are going to see a $15 MW as they started the national $15 MW movement:

     "The labor protest movement that fast-food workers in New York City began nearly three years ago has led to higher wages for workers all across the country. On Wednesday, it paid off for the people who started it."

    "A panel appointed by Gov. Andrew M. Cuomo recommended on Wednesday that the minimum wage be raised for employees of fast-food chain restaurants throughout the state to $15 an hour over the next few years. Wages would be raised faster in New York City than in the rest of the state to account for the higher cost of living there."

    "The panel’s recommendations, which are expected to be put into effect by an order of the state’s acting commissioner of labor, represent a major triumph for the advocates who have rallied burger-flippers and fry cooks to demand pay that covers their basic needs. They argued that taxpayers were subsidizing the workforces of some multinational corporations, like McDonald’s, that were not paying enough to keep their workers from relying on food stamps and other welfare benefits."

   "The $15 wage would represent a raise of more than 70 percent for workers earning the state’s current minimum wage of $8.75 an hour. Advocates for low-wage workers said they believed the mandate would quickly spur raises for employees in other industries across the state, and a jubilant Mr. Cuomo predicted that other states would follow his lead."

   http://www.nytimes.com/2015/07/23/nyregion/new-york-minimum-wage-fast-food-workers.html?_r=0

   Conservatives won't like it but they are the ones always fulminating about people on food stamps. So if there is a social cost to people on food stamps isn't this a benefit whatever short term distortions you believe would gone on in the labor market?

   Fewer people on 'the welfare rolls?' Yet, we know conservatives won't be buying this.

  However much they may kick and scream clearly a $15 MW is here to stay. The demand for it is only going to grow. The good news is everyone in low paying jobs in NY has gotten a raise-to be sure this will be done in increments. As we saw above, rightfully, NYC will get it faster. Even $15 an hour doesn't go that far in NYC-probably not much more than $7 factoring in the cost of living.

  It's going to be tough for other industries to continue to pay people $9 or $10 an hour. With all the conservative talk about incentives, I'd argue that this will encourage a lot more people to get work. I mean $8 or even $8.75 doesn't get you very far in NY. $15 is a little different.

  Retail already pays employees more-even Wallmart has been raising it's own MW. So this is an idea that is only going to gather momentum.

  "The decision comes on the heels of similar increases in minimum wages in other cities, including Los Angeles, San Francisco and Seattle. On Tuesday, the Los Angeles County Board of Supervisors agreed to raise the county’s minimum wage to $15 an hour by 2020, matching a move the Los Angeles City Council made in June."

  "But a more complicated political terrain in New York forced Mr. Cuomo to take a different route."

  "Mayor Bill de Blasio has demanded a higher minimum wage in the city to account for its higher cost of living. But neither he nor the City Council has the power to set wages citywide."

   "When lawmakers in Albany balked at the idea, Mr. Cuomo convened a board to look at wages in the fast-food industry, which is one of the biggest employers of low-wage workers in the state, with about 180,000 employees."

   "After hearing testimony from dozens of fast-food workers, the board members decided the state should mandate that fast-food chains pay more. Advocates often pointed to the giant pay packages the chains gave to their top executives."

   "The board’s decision removed the last significant hurdle to raising wages, since the acting labor commissioner, Mario Musolino, who must act on the recommendation, is widely expected to accept it."

   "The board said the first wage increase should come by Dec. 31, taking the minimum in the city to $10.50 and in the rest of the state to $9.75. The wage in the city would then rise in increments of $1.50 annually for the next three years, until it reaches $15 at the end of 2018. In the rest of the state, the hourly wage would rise each year, reaching $15 on July 1, 2021."

   "The mandate should apply to all workers in fast-food restaurants that are part of chains with at least 30 outlets, the board said. They defined fast food as food and drinks served at counters where customers pay before eating and can take their food with them if they choose."

   "The restaurant industry has chafed at these decisions. “We continue to say that we think it’s unfair that they singled out a single segment of our industry,” Melissa Fleischut, the executive director of the New York State Restaurant Association, said.

    She doesn't think it's unfair that workers in NYC try to live off $8 an hour of course. I wonder what she makes an hour. Fast food was targeted because they pay the worst.

   There's no question that the 90s warning 'We're becoming a nation of burger flippers' has come to fruition with the decline in the manufacturing sector and the rise of the service dominated economy. Now at least being a burger flipper will pay better.

 

   

    

3 comments:

  1. No comments or No comment. It's a distinction with a difference.

    They also raised the minimum wage in Manila, Philippines from 500 to 530 pesos I believe, which is about 12 $ USD (a day). It caused a hue and cry since many employers rather pay their workers about 200 PHP = $5 a day.

    Pedicab drivers, who take your anywhere in a bicycle with a sidecar (Filipinos are like Los Angeles residents, they hate to walk even 100 meters), make about 100 pesos a day, or $2.50 USD. But the upside is their bodies are lean, rock-hard, from working out all day. They do look a bit malnourished though. They get their protein from rice, which is a poor way of getting protein. Surprisingly, rice is not all carbs, even white rice has like 5 grams protein a cup (you need about 50 grams protein a day, which a lot of shrimp y looking kids and adults here in PH don't get), but you need to eat a lot of rice to get to 50 gr / day, which kids and adults here, some of who eat once a day or not at all, don't get.

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    1. If you lived through the 1980s the US Beef Counsel once ran adverts saying "beef builds strength" and recall Wendy's ad "Where's the beef?". They were right, though chicken is more environmentally friendly, as is tofu. Fish is worse than beef and largely unsustainable. Peace.

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