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SeaTac businesses stung by $15-an-hour pay


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#1    Purifier

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Posted 12 December 2013 - 07:44 PM

Just thought I'd post this.


http://money.msn.com...r15-an-hour-pay



Quote

With 40 employees and less than $5 million in annual revenue, the franchise hotel in SeaTac, Wash., could be the typical American small business. But the Holiday Inn Express will soon have to give most of its staff pay raises that are anything but routine.

Officials in SeaTac, which is 10 square miles nestled between Seattle and Tacoma and consists of an airport and its surroundings, confirmed this month that it will raise the minimum wage for many workers to $15 an hour starting in January. That's a 63% increase and the highest municipal minimum wage in the nation.




I think this is just the beginning. What does everybody else here think?

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#2    Sweetpumper

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Posted 12 December 2013 - 08:07 PM

I think I would shut down my businesses in that area.

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#3    SpiritWriter

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Posted 12 December 2013 - 08:14 PM

I say OUCH

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#4    SpiritWriter

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Posted 12 December 2013 - 08:16 PM

Prices are too high and big businesses make too much money. They want to take over what little else they dont monopolize. I say no matter what keep pushing, support small business, support good employee benefits, support programs that support small businesses, support cutting technology that is found outside of big businesses. Put your family first, think of other people's families and stick it to The Man.



Edited by SpiritWriter, 12 December 2013 - 08:19 PM.

The letter kills but The Spirit gives life. 2 Corinthians 3:6

Non-ambiguity and non-contradiction are one sided and thus unsuited to express the incomprehensible. -Jung

#5    SpiritWriter

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Posted 12 December 2013 - 08:20 PM

Figure out a way to pay more AND make more.... take a hit but come back with some punches.

The letter kills but The Spirit gives life. 2 Corinthians 3:6

Non-ambiguity and non-contradiction are one sided and thus unsuited to express the incomprehensible. -Jung

#6    Gromdor

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Posted 12 December 2013 - 09:55 PM

One of the candidates for governor was talking about raising the minimum wage here in Iowa to $15.  One of the big problems Iowa faces is that it's youth leave state for more lucrative jobs.  His idea was that if we raise minimum wage to $15 an hour then it would entice younger people to stay because of the higher entry level pay compared to bordering states.  The down side of course is the increased labor costs for business.


#7    Rafterman

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Posted 13 December 2013 - 12:02 AM

All according to plan my friends.

Now, watch the paradigm shift and we're suddenly talking about rich greedy business owners who don't want to give up their 3 Cadillacs, 2nd homes, and indoor pools in order to pay their poor struggling employees a few more dollars an hour.

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#8    Sir Wearer of Hats

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Posted 13 December 2013 - 01:55 AM

using the local fast food crack dealer (McDonalds) as an example, here in Oz do you know how many Big Mac meals they need to sell in an hour to not only cover the wages of the drones but also make a small profit?
One drone needs to see three meals an hour to not only make a $15 wage but also a small profit for Ronald.
If we assume that there are 8 drones on staff - 24. That's one every two minutes.
I've never driven past a Maccas that doesn't have at least four cars in the car park and two in the drive-thru (sic).

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#9    and then

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Posted 13 December 2013 - 02:09 AM

View PostGromdor, on 12 December 2013 - 09:55 PM, said:

One of the candidates for governor was talking about raising the minimum wage here in Iowa to $15.  One of the big problems Iowa faces is that it's youth leave state for more lucrative jobs.  His idea was that if we raise minimum wage to $15 an hour then it would entice younger people to stay because of the higher entry level pay compared to bordering states.  The down side of course is the increased labor costs for business.
So true but the logic of those who push for such wages (however commendable) stops at the "Robin Hood" mindset.  They do not admit that businesses will NOT just be forced to pay more - they will simply pass it along or go out of business.

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#10    Big Jim

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Posted 13 December 2013 - 02:30 AM

Using McD's as an example and figures off the top of my head, currently the Big Mac Value Meal sells for about 80% of the minimum wage.  If that ratio stays true then the same meal will have to sell for about $12 to accommodate the new labor rates.  How many would still be going there for lunch when the price is so far above the value?  Of course, every restaurant's price would have to increase when the entire labor pool gets a 100% raise.  What happens to the entire restaurant industry when their product becomes unaffordable for most of their customers?  Remember, it is the lowest paid employees that will be getting the raise, not everyone else.  There was a time when McJobs were considered strictly entry level.  That wasn't where you worked when you were trying to raise a family.  When I worked there many years ago an individual store grossing below a certain annual threshold didn't even have to pay minimum wage.  The low wages were enough for HS students and motivated most of them to prepare for something better.  We didn't march to change the business, we changed ourselves.


#11    MiskatonicGrad

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Posted 13 December 2013 - 04:06 AM

Last week the President piped in on this saying these people deserve to make a decent wage...? No Mr. President they deserve an economy where someone who has a family to support can find a decent job at someplace other than McDonalds flipping burgers. It sounds great but does anyone really think a small business can support that kind of pay scale? how can any elected official justify this.

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#12    Purifier

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Posted 13 December 2013 - 05:10 AM

View PostMiskatonicGrad, on 13 December 2013 - 04:06 AM, said:

Last week the President piped in on this saying these people deserve to make a decent wage...? No Mr. President they deserve an economy where someone who has a family to support can find a decent job at someplace other than McDonalds flipping burgers. It sounds great but does anyone really think a small business can support that kind of pay scale? how can any elected official justify this.

Yep! Saw something like that mentioned in the article;


Quote

President Barack Obama has backed raising the federal minimum to $10.10 an hour, from its current $7.25, by 2015. That proposal would raise the wages of about 30 million workers, who would receive more than $51 billion in additional pay over the phase-in period, according to a March report from the Economic Policy Institute.


When that happens (and it will), I don't think they're gonna stop at just $10.10 an hour. Probably the next near after that, they'll go up another dollar or two.

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#13    preacherman76

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Posted 13 December 2013 - 11:06 AM

View PostSir Wearer of Hats, on 13 December 2013 - 01:55 AM, said:

using the local fast food crack dealer (McDonalds) as an example, here in Oz do you know how many Big Mac meals they need to sell in an hour to not only cover the wages of the drones but also make a small profit?
One drone needs to see three meals an hour to not only make a $15 wage but also a small profit for Ronald.
If we assume that there are 8 drones on staff - 24. That's one every two minutes.
I've never driven past a Maccas that doesn't have at least four cars in the car park and two in the drive-thru (sic).

I keep hearing how Mc just cant afford to pay more. Personaly I think the numbers are cooked. I personaly know a guy who now owns 2. I grew up with his daughter. For years he just owned one, and he lives in the most expensive neighborhood in town. Im just an hour outta NYC northbound. Its one of the most expensive places to live in the country, cause NYC retires, and folks who commute to NYC for work have made the cost of living here insane. No kidding, this guy pays at least 20 grand in property tax alone. Thats just on his house, I cant imagine what he is paying for his business's. NTM has the best of everything. Even if he had to pay his workers 15 an hour, he would still live far better then most,

That being said, raising minimum wages is like putting a bandaid on a tumor. It isnt that people need to make more money. Its that our government has damaged the dollars purchasing power 99% since the vipers of the central bank took over.

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#14    third_eye

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Posted 13 December 2013 - 11:15 AM

One of my friends made his case with his boss saying -
"I'm here to work for my salary ... not here to make you wealthy ... If you want to be wealthy make your business better ... not from profits from making my salary low ... "

Got promoted to manager and made a lifelong friend ... that was about ten years ago ... and he's still working for the same guy ... married the boss' daughter but it didn't work out on that end ...

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#15    supervike

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Posted 14 December 2013 - 12:43 AM

View PostBig Jim, on 13 December 2013 - 02:30 AM, said:

Using McD's as an example and figures off the top of my head, currently the Big Mac Value Meal sells for about 80% of the minimum wage.  If that ratio stays true then the same meal will have to sell for about $12 to accommodate the new labor rates.  How many would still be going there for lunch when the price is so far above the value?  Of course, every restaurant's price would have to increase when the entire labor pool gets a 100% raise.  What happens to the entire restaurant industry when their product becomes unaffordable for most of their customers?  Remember, it is the lowest paid employees that will be getting the raise, not everyone else.  There was a time when McJobs were considered strictly entry level.  That wasn't where you worked when you were trying to raise a family.  When I worked there many years ago an individual store grossing below a certain annual threshold didn't even have to pay minimum wage.  The low wages were enough for HS students and motivated most of them to prepare for something better.  We didn't march to change the business, we changed ourselves.


You raise good points, but one problem is that at one time a teen could put in time at a McD's, learn some good work habits and then move out into the larger job force...maybe a manufacturing job.

Nowadays, there isn't those jobs to move onto.  We are quickly becoming a 100% service economy.

Of course, that is not Mc'D's problems, but it's not that people are not motivated to move on, it's that there is nothing to move on to.





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