Nov 6, 2014
San Francisco raises MINWAGE to $15 an hour for fulltime workers. A Business Case for raising wages.
Posted on Facebook by Roger Lake
John Beck I would think that would be a futile attempt. In my opinion it will simply drive up the cost of living and they will gain nothing.
Also, I have not read the new law but if they are required to work full time to receive the $15 per hr. wage the employers will simply cut their time to less than 32 hr. work weeks so that they wont have to pay the $15 per hr. I hope that's not going to be the case!
Roger Lake The Business Case for Raising the Minimum Wage
Raising wages reduces costly employee turnover and increases productivity. When the minimum wage goes up, employers can enjoy these benefits of paying higher wages without being placed at a competitive disadvantage, since all companies in their field are required to do the same. Raising wages also puts money in the hands of consumers, boosting demand for goods and services.
A 2003 study of the effects of a wage increase for workers at the San Francisco Airport found that annual turnover among security screeners plunged from 95 percent to 19 percent when their hourly wage rose from $6.45 to $10 per hour. After wages increased at the airport under a living wage policy, 35 percent of employers reported improvements in work performance, 47 percent reported better employee morale, 44 percent reported fewer disciplinary issues, and 45 percent reported that customer service had improved.
A 2006 article in the Harvard Business Review finds that wholesale retailer Costco’s higher wage rate than other retailers results in less turnover and employee theft, and greater productivity.
A 2005 study of San Francisco’s 2004 minimum wage increase found workers in fast-food restaurants remained employed for longer periods of time (an average increase of 3.5 months) and were more likely to have full-time jobs.
A 2005 study of a living wage for home care workers in the Bay Area found that turnover fell by 57 percent following an increase in their wages.
And a 2005 study of the effect of a living wage policy for firms that contract with the city of Los Angeles found that staff turnover rates at firms affected by the policy averaged 17 percent lower than at firms that were not affected.
In 2011, The Center for Economic Policy Research and the Center for Law and Social Policy released a turnover calculator that estimates the cost of employee turnover to an individual business.
For these reasons, nearly 1,000 business owners and executives, including Costco CEO Jim Singeal, U.S. Women’s Chamber of Commerce CEO Margot Dorfman, Addus Health Care CEO Mark Heaney, Credo Mobile President Michael Kieschnick, ABC Home CEO Paulette Cole, and small business owners from all 50 states, signed a Business for a Fair Minimum Wage statement supporting the last increase in the federal minimum wage. As their statement explained, “[h]igher wages benefit business by increasing consumer purchasing power, reducing costly employee turnover, raising productivity, and improving product quality, customer satisfaction and company reputation.”
John Beck I agree with this. But when where is the study across the board when everyone is required to pay a living wage? It has got to raise the cost of living.
Beverly Burk John Beck, These people deserve a living wage, Don't be a Scrooge!
John Beck Oh, I agree they do.. but you can't mandate it!
John Beck I guess they did.. We shall see what happens......
Roger Lake America’s low-wage economy is marked by two extremes. On the one hand, workers earning at or near the minimum wage are seeing the real value of their paychecks diminish steadily over time, as the cost of living increases while their wages remain stagnant. After nearly half a century of neglect, today’s federal minimum wage of $7.25 per hour is decades out of date. In terms of purchasing power, its value is 30 percent lower today than it was in 1968.
On the other hand, many corporations are posting record-breaking profits. The Wall Street Journal reported earlier this year that, after sinking from 2007 to 2009, corporate profits had successfully caught up to their pre-recession peak by the beginning of 2010 – and that by the third quarter of 2011, total profits for U.S. corporations reached a new record high of $1.97 trillion.
Roger Lake The central finding of this report is that the majority of America’s lowest-paid workers are employed by large corporations, not small businesses, and that most of the largest low-wage employers have recovered from the recession and are in a strong financial position.
* The majority (66 percent) of low-wage workers are not employed by small businesses, but rather by large corporations with over 100 employees;
* The 50 largest employers of low-wage workers have largely recovered from the recession and most are in strong financial positions: 92 percent were profitable last year; 78 percent have been profitable for the last three years; 75 percent have higher revenues now than before the recession; 73 percent have higher cash holdings; and 63 percent have higher operating margins (a measure of profitability).
* Top executive compensation averaged $9.4 million last year at these firms, and they have returned $174.8 billion to shareholders in dividends or share buybacks over the past five years.
Three years after the official end of the Great Recession, the U.S. continues to face a dual-crisis of stagnant wages and sluggish job growth. Critics argue that a higher minimum wage will discourage companies from hiring, and that most low-wage employers are small businesses that are still struggling in a weak economy. In fact, this report demonstrates that the majority of low-wage workers are employed by large corporations, most of which are enjoying strong profits.
John Beck I don't disagree with any of this data. But, I'm pretty sure it will raise the cost of living for everyone. Do you really think these Corps. won't pass along the cost?
Beverly Burk Workers deserve a piece of the profit pie. I don't follow the theory of 2 extremes, one is either for or against the minimum wage and I happen to be for it, I don't buy in to the GOP theory! I never worked a minimum wage job in my life, but still I see people working 2 to 3 jobs just to put a roof over their heads and food on the table. That is wrong! I don't care if I am called a liberal, socialist or what ever, this is the ethics I live by.
John Beck Maybe what should really happen is put a cap on what a corp. can earn and not pass along to their employees.
Beverly Burk You guys don't get .it! No more response from me
Roger Lake In a true free market John......
Competition works to keep prices down.
John Beck But, we don't have that in the USA anymore! (Free Market) too many regulations on everything. The Us can't compete.
Roger Lake It's simple math......
Higher Wages = Tax Revenue for schools, roads, etc.
John Beck All I can say to that is it looks good on paper. But the costs gets passed along.
Roger Lake The price of goods and services have been going up for 40 years John, without wages going up. Where is all that profit going too?
John Beck Very true, but it is also just passed along..... We gain nothing.
John Beck I could probably work at McDonald's full time and make more money than I do know working 50+ hrs. per week with 0 benefits. So, I'm not disagreeing on behalf of myself.
at 5:14 PM