The Conservative Cave
Current Events => Economics => Topic started by: thundley4 on July 07, 2009, 10:08:40 AM
-
NEW YORK (CNNMoney.com) -- The federal minimum wage is set to increase later this month as the job market shows signs of further decay.
The federal minimum wage will go to $7.25 an hour on July 24 from its current level of $6.55, according to the U.S. Department of Labor.
The impact will be felt in 29 states, and many of them plan to match the federal minimum when it goes through.
Seven states already have laws mandating $7.25 minimum pay, while 14 states and Washington, D.C., exceed the new minimum. Employers are required to pay whichever is the highest: Federal or state.
Last July, the wage floor was raised from $5.85 per hour. The increases were mandated by a bill passed by Congress in 2007, when the minimum was $5.15 an hour, where it had stayed for years.
Link (http://money.cnn.com/2009/07/06/news/economy/minimum_wage/index.htm?postversion=2009070614)
At least my state won't be affected by this since Illinois already has a higher minimum wage. This can't be good for the states that will be affected by it.
-
Already $7.25 here.
-
I've talked to the former owners of three former restaurants around here.
All said they couldn't afford to pay their employees the new minimum wage, so they just shut down.
-
I've talked to the former owners of three former restaurants around here.
All said they couldn't afford to pay their employees the new minimum wage, so they just shut down.
This will be repeated many times over. Those who choose to stay open will do so with less employees.
KC
-
Being unemployed is better than working for low wages. [/dumode]
-
Being unemployed is better than working for low wages. [/dumode]
And they'll keep repeating that right up until the point the state gives them an "IOU" welfare check.
-
Does this mean people will be getting more for unemployment?
-
I've talked to the former owners of three former restaurants around here.
All said they couldn't afford to pay their employees the new minimum wage, so they just shut down.
If their margins were so low, that a seventy cent increase an operation costs per hour for the lowest earning employees would shutter them. It's good that they closed down now, as even without an approximately dollar an hour bump when payroll taxes are factored in... they'd likely be forced to close before too long.
-
Who else is projecting higher unemployment numbers for August, after this goes into effect?
-
Gee, this burger & fries used to cost $5, but now it costs $6.50. I blame McBushWalmartCheneyHaliburtonCo. [/DUmp mode]
:whatever:
-
Who else is projecting higher unemployment numbers for August, after this goes into effect?
I think so. Then there is the fact that GM will be laying off more people per their bankruptcy agreement. I heard on the radio this weekend, that as many as 20% may be laid off.
-
Does this mean people will be getting more for unemployment?
Not it California as what you get for unemployment is based on your wages for the previous year.
-
If their margins were so low, that a seventy cent increase an operation costs per hour for the lowest earning employees would shutter them. It's good that they closed down now, as even without an approximately dollar an hour bump when payroll taxes are factored in... they'd likely be forced to close before too long.
The issue is that it doesn't just effect the employees making minimum wage. Salary adjustments would probably need to be made up the wage scale for most hourly employees, otherwise they would be getting an effective reduction in salary.
-
The issue is that it doesn't just effect the employees making minimum wage. Salary adjustments would probably need to be made up the wage scale for most hourly employees, otherwise they would be getting an effective reduction in salary.
Companies don't adjust for those already making more...at least none that I ever worked for did. Worked for one company for 9 years...effectively double my pay during that time, due to promotions and raises. Company changed "new hire" policies to bring them in at a certain level...which was what i was making at the time. Didn't raise my pay, though, since I was at their minimum already. I left the companyt shortly thereafter.
-
The issue is that it doesn't just effect the employees making minimum wage. Salary adjustments would probably need to be made up the wage scale for most hourly employees, otherwise they would be getting an effective reduction in salary.
Most, if not all union contracts are indexed to the minimum wage......when it goes up, all contract workers receive an automatic increase......in this economic environment, this is definitely a job killer......look for layoffs across the board, not just in the lower income brackets......
doc
-
Most, if not all union contracts are indexed to the minimum wage......when it goes up, all contract workers receive an automatic increase......in this economic environment, this is definitely a job killer......look for layoffs across the board, not just in the lower income brackets......
doc
Not this union worker.
-
Not this union worker.
You might want to check the fine print in your contract.....all public employees unions, the UAW, Teamsters, and the CWA have that clause, unless it has been eliminated in contracts signed over the past couple of years......it used to be "boilerplate"....
I assume that you are in IBEW, and I'm not familiar with them.....
doc
-
You might want to check the fine print in your contract.....all public employees unions, the UAW, Teamsters, and the CWA have that clause, unless it has been eliminated in contracts signed over the past couple of years......it used to be "boilerplate"....
I assume that you are in IBEW, and I'm not familiar with them.....
doc
I'm in the IBEW, and we don't have that in our contract, but then every contract is different from business to business.
-
You might want to check the fine print in your contract.....all public employees unions, the UAW, Teamsters, and the CWA have that clause, unless it has been eliminated in contracts signed over the past couple of years......it used to be "boilerplate"....
I assume that you are in IBEW, and I'm not familiar with them.....
doc
I'm not IBEW. And no, it's not in our contract. Our wages were set in the last contract negotiation. If inflation goes up 30 percent under Obumble, tough noogies. Same with minimum wage increases.
-
If their margins were so low, that a seventy cent increase an operation costs per hour for the lowest earning employees would shutter them. It's good that they closed down now, as even without an approximately dollar an hour bump when payroll taxes are factored in... they'd likely be forced to close before too long.
Aren't you just a humanitarian!
You do realize that many small businesses operate on extremely small checks and balances.
It's not only the hourly wage but also the increase in EVERYTHING else that goes with it.
Just the paperwork involved can put them in a bind. Many Small Businesses try to do their own accounting. What an employer pays in an hourly wage is damn near doubled to the employer, or didn't you know that? Especially if they have a health insurance program for their employees.
There is much more to advancing minimum wage than just saying we're going to require employers to pay additional money to their employees.
You do realize we're in a recession, right? This is NOT the time to be ****ing with the American minimum wage! Why not postpone it until our economy is in better shape? For cryin' out loud, many businesses are on the edge right now, they are laying off workers, NOT PAYING THEM MORE MONEY! What a good idea to lay another burden on them during this crisis!
You voted for the messiah didn't you?
edited 'cause I'm pissed off and hitting too many keys
-
If their margins were so low, that a seventy cent increase an operation costs per hour for the lowest earning employees would shutter them. It's good that they closed down now, as even without an approximately dollar an hour bump when payroll taxes are factored in... they'd likely be forced to close before too long.
It is estimated that 300k will lose their jobs because the increase in min. wage. If these workers can not find a job, the result is that they lose the earned income tax credit. Have you factored that in dumb ass.
-
Most, if not all union contracts are indexed to the minimum wage......when it goes up, all contract workers receive an automatic increase......in this economic environment, this is definitely a job killer......look for layoffs across the board, not just in the lower income brackets......
You might want to check the fine print in your contract.....all public employees unions, the UAW, Teamsters, and the CWA have that clause, unless it has been eliminated in contracts signed over the past couple of years......it used to be "boilerplate"....
I would assume the latter, to be the case. As I'm familiar with several Local contracts, of the aforementioned Unions, and have never seen that contractual clause. Actually, I have heard of that clause with a UFCW contract, but that was only in relation to unskilled part-time workers whom made just pennies more than the prevailing minimum wage.
-
It is estimated that 300k will lose their jobs because the increase in min. wage. If these workers can not find a job, the result is that they lose the earned income tax credit. Have you factored that in dumb ass.
Estimating the effect on employment or employment opportunities stemming from minimum wage adjustments is hotly contested, even at the academic level by economists. Which leads to news outlets, among others, selectively choosing the case study which supports their argument. Rather than the merits and faults of a particular case study.
As for the loss of the EITC, you're absolutely right that I did not factor that in. Although my original statement, was just that a business operating on such a slim margin wouldn't likely last regardless of whether this minimum wage increase passed or not. So I'm really not seeing how it relates to that statement.
I'll ignore the snide comments, and wish you well.
-
Aren't you just a humanitarian!
You do realize that many small businesses operate on extremely small checks and balances.
It's not only the hourly wage but also the increase in EVERYTHING else that goes with it.
Just the paperwork involved can put them in a bind. Many Small Businesses try to do their own accounting. What an employer pays in an hourly wage is damn near doubled to the employer, or didn't you know that? Especially if they have a health insurance program for their employees.
There is much more to advancing minimum wage than just saying we're going to require employers to pay additional money to their employees.
You do realize we're in a recession, right? This is NOT the time to be ******* with the American minimum wage! Why not postpone it until our economy is in better shape? For cryin' out loud, many businesses are on the edge right now, they are laying off workers, NOT PAYING THEM MORE MONEY! What a good idea to lay another burden on them during this crisis!
You voted for the messiah didn't you?
edited 'cause I'm pissed off and hitting too many keys
You're right, I apologize for not placing in bold, aspect of my original statement. My lack of using italics, bold, colors, or slightly funky fonts surely was intentionally misleading. :whatever:
I also apologize for not remembering that workers who earn minimum wage have health insurance. :whatever:
I also apologize that some companies haven't heard of the likes of Quicken or similar software packages. Perhaps I should bold that? Quicken