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SeaTac businesses stung by $15-an-hour pay


Gunn

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Just thought I'd post this.

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

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

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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.

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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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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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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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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.

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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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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;

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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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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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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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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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.

Ooooooh why did ya haft go and hit the nail on the head like that?! You just had to go and point that out, didn't ya?! You no good pointerouter person, you! :D

But yeah, I've seen people on the news from a number of lost high paying jobs, from ex-computer programmers to ex-factory workers, complaining about the lack of real jobs in this country, while stuck working in places like Wal-Marts, McDonalds or Burger King; and some of these people are in their 40's and 50's.

That's sad, man. Just really sad.

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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.

You are absolutely right. I found myself delivering auto parts in my 50's after my career job vanished. But I still wonder what will happen to those jobs when the majority of other workers are brown bagging it because they can no longer afford to eat lunch at McDonalds. The current minimum wage might look pretty good to someone who is out of work. Working at restaurants pretty much prepares you only to work at other restaurants. When the food service industry goes under due to a loss of customers those workers will have nowhere else to go. We've seen the same thing happen to other industries when the demand for higher wages caused factories to close.

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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.

What a good idea...

We have several big-name manufacturers here in the Tennessee Valley; Volkswagen, Chattem, Shaw, and McKee Foods just to name few.

However, there is a major shortage of skilled industrial workers, and not just here in Tennessee.

Experts say by 2020, the shortage nationwide will grow to more than 13 million.

Larry Denbrock, a West Tennessee manufacturer, says, "I think manufacturing has gotten a bad rap to be honest with you. I think people thought at one time that manufacturing was the dark and dreary dungeon existence."

But manufacturers say the industry has changed dramatically, and now they're left with a lack of young, qualified people wanting these jobs.

Catherine Glover, President of the Tennessee Chamber of Commerce and Industry, says, "Most folks don't necessarily encourage their students into manufacturing."

That's why the Tennessee Chamber of Commerce and Industry created a program called Dream It Do It.

Their goal is get more young people interested manufacturing careers.

Glover adds, "Our focus is our youth, our educators, guidance counselors, the community as a whole that manufacturing is not only alive and well in Tennessee, but it is a very good career."

In fact, there are thousands of job openings right now in Tennessee for skilled industrial workers.

Denbrock adds, "Manufacturing is really the place to be these days. It drives up the prosperity that we see in our region. I think everyone could tell you when we loose a manufacturer, that's bad news for the economy."

http://www.wdef.com/...0A51MzE0vw.cspx

Being in the manufacturing industry I can vouch for fact that we are begging for people with any kind of interest in learning a trade. We even offer on the job training if they show any initiative at all, but it is hard work and they won't stay long.

Edited by Michelle
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Things seem to be picking up right now. According to the latest findings with Bureau of Labor Statistics we've only got 10.9 million unemployed with the unemployment rate at 7 percent, which could be better, but it's a helluva lot better than 6 years ago.

http://www.bls.gov/n.../empsit.nr0.htm

@Michelle - this might interest you:

Establishment Survey Data

Total nonfarm payroll employment increased by 203,000 in November. Job growth averaged

195,000 per month over the prior 12 months. In November, job gains occurred in

transportation and warehousing, health care, and manufacturing. (See table B-1.)

Employment in transportation and warehousing rose by 31,000 in November, with gains

in couriers and messengers (+9,000), truck transportation (+8,000), warehousing and

storage (+5,000), and air transportation (+3,000).

Health care employment continued to increase over the month (+28,000). Job gains occurred

in home healthcare services (+12,000) and offices of physicians (+7,000), while nursing

care facilities lost jobs (-4,000). Job growth in health care has averaged 19,000 per

month thus far this year, compared with an average monthly gain of 27,000 in 2012.

In November, manufacturing added 27,000 jobs. Within the industry, job gains occurred in

food manufacturing (+8,000) and in motor vehicles and parts (+7,000).

In November, employment in professional and business services continued to trend up

(+35,000). Over the prior 12 months, the industry added an average of 55,000 jobs per

month.

Retail trade employment also continued to expand in November (+22,000). Within the

industry, job growth occurred in general merchandise stores (+14,000); in sporting

goods, hobby, book, and music stores (+12,000); and in automobile dealers (+7,000).

Over the prior 12 months, job growth in retail trade averaged 31,000 per month.

Within leisure and hospitality, employment in food services and drinking places continued

to trend up in November (+18,000). Job growth in this industry averaged 28,000 per month

over the prior 12 months.

Employment in construction continued to trend up in November (+17,000). Monthly job

gains in the industry averaged 15,000 over the prior 12 months.

Federal government employment continued to decline (-7,000) in November. Over the past

12 months, federal government employment has decreased by 92,000.

Employment in other major industries, including mining and logging, wholesale trade,

information, and financial activities, showed little or no change in November.

Maybe it was some of those manufacturing jobs in Tennessee you posted about. ;)

BTW, how many manufacturing jobs nationwide are currently available, do you happen know? I can't seem to find the latest statistics on that.

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