What SeaTac tells us about minimum wage hike; causing havoc

[flowers]

http://www.nwasianweekly.com/2014/05/blog-seatac-tells-us-15-minimum-wage/

By Assunta Ng

While attending an event at a SeaTac hotel last week, I met two women who receive the $15/hour minimum wage. SeaTac has implemented the new law on Jan. 1. I met the women while they were working. One was a waitress and the other was cleaning the hallway.

“Are you happy with the $15 wage?” I asked the full-time cleaning lady.

“It sounds good, but it’s not good,” the woman said.

“Why?” I asked.

“I lost my 401k, health insurance, paid holiday, and vacation,” she responded. “No more free food,” she added.

The hotel used to feed her. Now, she has to bring her own food. Also, no overtime, she said. She used to work extra hours and received overtime pay.

What else? I asked.

“I have to pay for parking,” she said.

I then asked the part-time waitress, who was part of the catering staff.

“Yes, I’ve got $15 an hour, but all my tips are now much less,” she said. Before the new wage law was implemented, her hourly wage was $7. But her tips added to more than $15 an hour. Yes, she used to receive free food and parking. Now, she has to bring her own food and pay for parking.

Another staffer did not want to say anything, but he did say the $15 has a huge impact on the hotel.

The wait staff said the hotel across the street is unionized. Therefore, management is not required to pay the $15 wage. (end)

[GourmetDan]

The wait staff said the hotel across the street is unionized. Therefore, management is not required to pay the $15 wage.

Ah... legally punishing business and workers for resisting unionization.

Funny how that slipped in there...

[Oceander]

That's what you get for living in a liberal "paradise" (aka, a hellhole).  I know one thing:  if I ever have to go to seattle, no tips.


The point one of the comments makes about being taxed more highly is definitely true.  Employees generally aren't taxed on the value of most fringe benefits such as free meals and parking so, to the extent that some of that $15 is in lieu of the free meals and parking, the employees are now being taxed on something they weren't taxed on before.  Also, because the federal tax rate is progressive, the employees will end up owing more than twice the tax they owe now.

I, for one, can't wait to see just how quickly fast-food restaurants, for example, roll out the self-help ordering systems that don't require a warm body to take customers' orders.

[GourmetDan]

I, for one, can't wait to see just how quickly fast-food restaurants, for example, roll out the self-help ordering systems that don't require a warm body to take customers' orders.

Raising the cost of labor (through wages, taxes, regulation, etc) shortens the payback period and encourages automation... every... single... time...

[rangerrebew]

Seattle’s New Minimum Wage Hike Already Causing Havoc

By Onan Coca   / 9 June 2014   / 0 Comments   

 
The city of Seattle recently decided to raise the minimum wage within the city to $15 an hour. This move led to cheers from the left and consternation from the right. Fortunately, Seattle is a pretty liberal city so the voters there will have to lie in the bed of their own making… while we conservatives on the outside can learn from their mistake.

There is already evidence that the move to raise the minimum wage is doing exactly what conservatives predicted it would do – drive up prices. Here it is…

receipt

Northwest Watchdog called Masterpark to verify the authenticity of the receipt. Kevin, the attendant on duty Wednesday afternoon, confirmed the charge is real. To deal with the higher wage, enacted on Jan. 1, Masterpark is charging customers an additional 99 cents per parking day, a surcharge that comes on top of all other taxes and fees.

It’s not hard to understand, it simply takes some honest logical thought.

minimum wageIf you raise the minimum wage on businesses, that means the cost to operate rises, in some cases dramatically. If you are a business owner who is used to operating at a certain level of income, what would you be more likely to do: a) accept the new much lower level of income or b) find a way to counter the new higher cost of operating so that you can continue to make something close to what you were making before?

A profitable businessman will choose to try and remain profitable (choice b).

How will he accomplish this? He will either cut employee hours, cut employees, or raise prices… or some combination of those choices.

 

 
The Masterpark receipt shows that they have started by raising prices. The next step may very well be to cut employees or employee hours and mechanize. A parking garage does not necessarily need employees to operate – they could simply go with a computer that dispenses tickets and takes payment. I would bet that Masterpark will use this new rise in the minimum wage to both raise prices and cut employees.

In a sick and twisted socialist way this move to raise the minimum wage could actually help companies like Masterpark make more money, while making low income workers poorer. How? Materpark fires workers and replaces them with machines, but keeps the price increase that the new minimum wage gives them cover to pass on to their customers. In essence making the customer pay for new higher wages that Masterpark doesn’t actually pay…

Do you see what happens when you don’t think before you act, liberals? You make things worse.

Read more at http://eaglerising.com/6658/seattles-new-minimum-wage-hike-already-causing-havoc/#Llm2I2y2sXEbwzgQ.99

[NavyCanDo]

"Seattle is a pretty liberal city"   is a  Huge understatement.  It's a very liberal city. They elected their first socialist city councilmen who is also a leftist activist which the news media celebrated with glee, and give her almost nightly airtime. If she calls a press conference all the cameras and microphones are there. She really has a celebrity status because of her activism. This same socialist was also the driving force behind the $15 min wage movement.    I have never seen a new city councilmen weld so much power.

[flowers]

I remember more than once when I was working at a place when minimum wage was going to go up the day or so before management raised the prices on some of the items.  They always raised the prices.

i just cannot understand the mentality of these people who actually think a forced pay raise will not cause prices to go up.

A article was posted at this site recently......a woman voted for all the parks and school bonds, yet she was upset her taxes had gone up.  I guess she is the same type of person that doesn't think forced pay raises will make all things go up in price.  I just don't understand how these people cannot see that.