Workers Win Fight For Living Wage, Then Lose Jobs

Something strange happened recently in a restaurant.

A union won an arbitration on behalf of 175 workers who wanted a living wage.

These people apparently were getting $5 an hour plus tips.

The settlement got them a raise up to $12 an hour.

So, in response to this, the restaurant raised some prices and then closed because customers apparently fell off.

Hmmm.

Another Community Organizer Non-Victory In New York

“After Winning a Raise, 175 Workers At a Queens Casino Lose Their Jobs.”

That result would never have happened if the workers had won their raises by demonstrating higher levels of productivity to their employer, The Resorts World Casino. Instead, these wage increases were dictated by a labor arbitrator who doubled the base wages for workers in the casino under the living wage arrangement that he imposed on the firm.
No one should be thrilled that restaurant workers have to settle for wages of $5 per hour plus tips. But a steady job at that level is better than no job at the $12 base pay ordered by the arbitrator. The casino sought to raise food prices to compensate for the increased costs, but the law of demand applies to consumers as well. In hard times, they won’t stand for the increased prices, so the casino closed a food operation that could only operate at a loss, leaving 175 union members to scramble for jobs.

Retaliation? or Sour Grapes?

reply to post by xuenchen


175 x 40 hrs = 7000 hrs
$5 ph x 7000 = $35000
$12 x 7000 = $ 84000 all per week

Probably couldn't afford it.

reply to post by EA006


Exactly! And the customers wouldn't pay $8.00 for a hot dog. No one won in this debacle.

Des

And it will not stop at that. The highest costs of business is labor, and if you double that cost without an increase in production....you shut down. In this tecky age, you run a business at a margin of profit, when all you see is red ink, there is no need to continue as it will run you dry, this is why most car parts and in some cases complete vehicles are made in mexico and canada, lower labor costs....be very careful what you ask for...you may just get it.....

IF the rich don't want to pay a living wage. FINE,

don't let THEM make ANY profit..

And next hopefully people will find ways to destroy them. When 10 hungry unemployed people KNOW the rich guy has food. Hopefully they will take the rich out.

If everyone cant be rich then die fighting and making sure NOONE is.

HanzHenry
IF the rich don't want to pay a living wage. FINE,

don't let THEM make ANY profit..

And next hopefully people will find ways to destroy them. When 10 hungry unemployed people KNOW the rich guy has food. Hopefully they will take the rich out.

If everyone cant be rich then die fighting and making sure NOONE is.

Very philosophical sounding.

How's that work anyway?

reply to post by xuenchen


One restaurant alone can not do this. Such rules work well, if these apply to everybody. If in one shop the hot dog costs 8 dollars (12 $ and in the other one next door 4 (5 $ hourly wage), although the cheapness comes on the expense of the employees.Of course the customer buys from the cheaper store. Majority of people either do not know or do not care, which strategies companies use to lower their prices. The general attitude is : "As long as stuff is cheaper, it is okay".

If the hot dog costs roughly 8 in all stores, he would still buy from the first store he goes to.

That is the reason why there must be uniform laws, at least when it comes to lower wages, otherwise there will always be some company who will start lowering the price of their products via exploiting their employees, which eventually leads to gaining signifcant market advantage compared to opponents, who pay their employees fairly. If even one company wants to do the right thing, they can´t because it would give their market share to opponents, who keep their prices lower by paying less to employees.

reply to post by Cabin


Sounds like you are describing "competition".

How would you stop "competition", and what other pitfalls would ensue?

reply to post by xuenchen


Imagine the situation as a sports competition where general fair play rules are set out, a´la steroids and other similar power-enchanching drugs are not legally allowed. Is that killing the competition?

I do not want to stop competition. Competition is necessary when it comes this particular field (diners, restaurants etc). There is nothing bad in winning the market share by having higher quality products, innovative business strategy, great marketing campaigns etc , although all this should not come on the expense of the people working in the company, who make the company even possible.

HanzHenry
IF the rich don't want to pay a living wage. FINE,

don't let THEM make ANY profit..

And next hopefully people will find ways to destroy them. When 10 hungry unemployed people KNOW the rich guy has food. Hopefully they will take the rich out.

If everyone cant be rich then die fighting and making sure NOONE is.

I want to come to your house and sit on your porch for 8 hours per day baby sitting your tree... and I want you to pay me a living wage to do that...ok?

Have you ever thought that there are actually jobs out there that can not be paid a living wage because the actual job doesn't provide enough income to the business to justify it? So in your Utopia world where the rich all die, or should I say anyone who owns a business dies who gets a job?

You sound like a 20 year french fry cook at Burger King that is now frustrated you don't have a 100k a year job....Am I close to the truth?


Screw living wage...tell me of a job that should be paid a living wage (define that too) that isn't...

Cabin
although all this should not come on the expense of the people working in the company, who make the company even possible.

Can you name a real company that does that?


Give me some details too, like the jobs being done what they pay now, what they should be paid instead...

I think if I worked for a company that did this I would look for a different company...do you agree, or are we talking about a person whose greatest moment in life, and what will be their greatest accomplishment, was when they were hired as a shelf stocker at Wal-Mart.

The basic theory is that a poor man cannot employ you, therefore you are left with the business owner...the rich guy. Now matter how he got his money, he, along with other rich guys own businesses that hire people. These people that work for the rich guy took the job at a specified rate at the point of employment. If you chose not to better yourself and stay linear you will live a linear life. It saddens me that some americans say these type things while Pedro crosses the border, takes his job, works his ass off, and betters his life for him and his family while the american cries "evil rich guy". Most people do not care of others view of them, but most border jumpers think you are a lazy spoiled prozak infested child in an adult body, and happy to take your job and everything that goes with it......

Destinyone
No one won in this debacle.

The employer (Genting Group) has billions in assets and employs over 58,000 people globally.

Somehow I suspect that they could care less about the employees or the loss in income.

reply to post by Xtrozero


Generally, I would say majority of companies, especially retail, use somewhat similar strategy for keeping the prices lower due to lower expenses on employee costs, especially when it comes to lower-skilled jobs, who are usually easily replaceable in current economy, where there are not many jobs to choose from. If a person has a choice, either 5 dollars an hour, or my family starves, he chooses the first option.

Also you have to consider the fact, that there are many people out there, whose mental capabilities might top at some burger flipping or very low-skilled field. Every 7th person out there has IQ lower than 85, while 50% of the population has it lower than 100. A person with an IQ of 80, has not much chance for ever being able to do more intellectually demanding jobs, which usually are higher-paying.

Another thing to consider is the fact that somebody has to do the easy things anyways. Somebody has to work in Walmart, somebody has to clean, plumb, whatever the job.

I´m not talking about some 100k yearly salary for a burger flipper, but reasonable enough salary, so the person could get healthcare, basic food and pay the rent/transport, living wage basically. At least in most European countries something similar has been achieved, although the cultures are also very different. US salary system is very broad, for example, when here the lower employees earn 1, middle-level earns 5, specialist 7 and the top 10, then in US it might be 1,7, 12 and 20 (40) . The bottom loses more and the top wins more, here it is more equal. Top still earns well, but bottom gets the living wage.

sad old story.. Look at all the airlines that went out of business because of labor demands in the 80s.. Meet the demand with an affordable product or close your doors unless you want some state run business like Russia and China tried for years... Didn't work to good for them either.

Texas Road House is a steak house who pays their waiters and waitresses about $2.39 an hour if I remember correctly; with tips they average about 17 to $22 an hour in a good location restaurant. New people are always wanting a job according to my manager friends who work there. Supply and demand rules in business in spite how some socialist have been raised to believe; in a bad economy you have people trying to make a career out of jobs that were once the domain of kids going to school and working for some extra money. some feel that since they are alive someone owes them something even though they are just problem children with no money making marketable skills regardless of age. Some of this stuff comes from business 101 and the rest from, everyone gets a trophy even though they came is last !

HanzHenry
IF the rich don't want to pay a living wage. FINE,

don't let THEM make ANY profit..

And next hopefully people will find ways to destroy them. When 10 hungry unemployed people KNOW the rich guy has food. Hopefully they will take the rich out.

If everyone cant be rich then die fighting and making sure NOONE is.

With all due respect.... That is ridiculous and I felt a bit ridiculous reading it.

This line of thinking is becoming more popular by the day, yet most who espouse it never bother to put themselves in the "Rich Man's" shoes.

Imagine being born dirt poor. You work hard, you study hard, fate smiles down on you and gifts you with the ingenious idea of a self wringing cat bikini. You gamble your house, your savings, and the beginnings of your children's college funds to make this prototype in hopes of selling it for ( que Dr. Evil's voice here) 1 Million Dollars.

The panel loves it and agrees to go into production with you. QVC smells a winner and gives you an hour long spot to do your thing. The self wringing cat bikini explodes and they can't keep it on the shelves. You are suddenly living like Scrooge McDuck and swimming in your massive amount of income. You are forever thankful. You remember what it was like to be so poor but you worked hard for what you wanted and IT PAID OFF.

The doorbell rings... Who is that you ask? It's the meth addicted homeless man from down the street who beat his wife to death 15 years prior. He never had a work ethic in his life. He fathered child after child and never paid support. He steals from your neighbors to support his habit since he has no income of his own. Matter of fact he has never had a source of steady income the state did not provide. While you were working your arse off, he was sleeping till noon, knocking up every girl he could find, and sucking the system dry. What on earth could he want?

YOUR MONEY... Now give him half of it and be ok with that.

reply to post by Cabin


Which european countries have no poor working class people? with a wage that has balance and equality???

reply to post by Kangaruex4Ewe


Brilliant...absolutely...Brilliant....



Des

HanzHenry
IF the rich don't want to pay a living wage. FINE,

don't let THEM make ANY profit..

And next hopefully people will find ways to destroy them. When 10 hungry unemployed people KNOW the rich guy has food. Hopefully they will take the rich out.

If everyone cant be rich then die fighting and making sure NOONE is.

That's the Spirit Henry!!!!!! Kill those damm successful people. Then people will have............nothing.

Lets run businesses with No Profit!!!!! Pure Genius.

............are you sure you aren't an Obama Czar????????

The real problem is inflation not the living wage.