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US lawmakers introduce bill to raise minimum wage, restaurant groups raise opposition

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XiaNaphryz

LATIN, MATRIPEDICABUS, DO YOU SPEAK IT
Lawmakers introduce bill to raise federal minimum wage

Two lawmakers, flanked by a restaurant owner and two quick-service employees, held a press conference Tuesday to jointly introduce a bill seeking to raise the federal minimum wage by nearly 40 percent.

The measure would increase the minimum wage from the current $7.25 per hour to $10.10 by 2016. After that, it would be indexed to inflation, which would provide for automatic adjustments every year, according to Sen. Tom Harkin, D-Iowa, and Rep. George Miller, D-Calif., the lawmakers who introduced the bill.

In his State of the Union address three weeks ago, President Barack Obama called for the minimum wage to be increased to $9 an hour. Rob Green, president of the National Council of Chain Restaurants, said Harkin and Miller told President Obama, “We’ll see you and we’ll raise you.”

Congress last raised the minimum wage in 2007, when it boosted it to its current level from $5.15.

Speaking at the press conference in Washington, D.C., Harkin disputed arguments that a hike in the hourly federal wage would damage the country’s fragile economy and force businesses to lay off workers. He said it was “a myth that every time we raise the minimum wage people get put out of work. There’s no empirical data to support that.” Instead, he added, “Every time we raise the minimum wage, the economy gets stronger.”

Also speaking at the press conference, Anas “Andy” Shallal, owner of the Busboys and Poets restaurants in the Washington, D.C., area, agreed with Harkin, noting that Washington’s minimum hourly wage is higher than the national rate, yet restaurants are opening all the time. However, he said, he has watched as industry wages have remained stagnant.

"I want our business to provide career opportunities. This is not working for anybody — it’s not good for workers or society. I would love to see [this bill pass],” Shallal said.

Amy Crawford, who works for an unidentified quick-service restaurant in Chicago, also joined Harkin and Miller to support the measure, saying that even though she was hired at the Illinois hourly minimum wage of $8.25, “that is not enough to live on. I worry about paying the rent, having enough food…buying clothes for my kids.”

She added that she has received only one 50-cent raise since taking the job and has found almost no opportunities to move into a management position.

The authors of the bill also say indexing the minimum wage to inflation will help protect workers in the future. “It’s a significant change,” Miller said. “Without indexing we fall behind.”

Harkin said the measure would also enable workers who rely on tipped income to make 70 percent of the full minimum wage per hour.

Industry associations, however, insist that a hike of this size would indeed damage the foodservice industry. Scott DeFife, the National Restaurant Association's executive vice president for policy and government affairs, said the NRA was opposed to the measure.

“It’s the wrong bill at the wrong time,” he said, adding that not only are the mechanics of the bill flawed from the standpoint of its “dramatic” increase in the minimum wage, but in its effort to peg future hikes to inflation. “Indexing has been shown, in most states, to have decreased job creation in certain sectors of the industry,” he said.

DeFife said the legislation would have a major impact on the restaurant business, which is still struggling to rebound from the recession and is facing significant cost concerns as it works to implement health care reform. “Minimum wage is just a proposal,” he said. “The regulatory changes in health care are very real. A minimum wage hike of this magnitude [as] proposed today on top of very real health care costs that will need to be absorbed is very troubling.”

Judith Thorman, the International Franchise Association’s senior vice president of government relations and public policy, said in a statement, “Franchise small businesses have been hit hard with constant incremental cost increases that make it more difficult for them to expand and create new jobs, such as [healthcare] compliance costs, tax increases, hikes in commodity prices and the lack of available capital. Raising the minimum wage by nearly 40 percent will pile on additional costs on the backs of these job creators.

“Franchises provide many Americans their first job — these jobs are many times at the minimum wage, but provide workers their first step on the employment ladder,” she added. “Increasing the minimum wage will not increase opportunities for these younger entry-level workers, but rather will make it harder for employers to offer these positions by driving up payroll and labor costs — in effect hurting the people proponents of raising the minimum wage want to help.”

The NCCR’s Green said he hopes Congress would “focus on other important issues like immigration reform, tax reform and the effective implementation of the healthcare law. I would rather see them focus on those key economic issues.”

According to the U.S. Bureau of Labor Statistics, an estimated 3.6 million people were paid hourly rates at or beneath the federal minimum wage in 2012, down from 3.8 million in 2011.

Eighteen states, including the District of Columbia, currently set their minimum hourly rates above that of the federal government. San Francisco has the highest local rate, at $10.55 an hour.
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Grinchy

Grinchy

Banned
I guess we need to start tipping 30% if this doesn't pass.

Really though, I like the idea of the minimum wage going up every year based on inflation. That is a pretty fair way to do it. Though, that's coming from a guy who doesn't own a business...
 
A

awm8604

Banned
So they're admitting the official inflation rate* of 2% is bogus. ~40% (2.85/7.25) over the next 4 years sounds about on target.

*Which conveniently excludes food and energy.
 
K

KHarvey16

Member
awm8604 said:
So they're admitting the official inflation rate* of 2% is bogus. ~40% (2.85/7.25) over the next 4 years sounds about on target.

*Which conveniently excludes food and energy.
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What are you talking about? The rise to $10.10 isn't supposed to keep up with inflation, it's supposed to make up for all the time it didn't move.

And why would you ever want to include volatile commodities in a measure of the value of money?
 
K

Kad5

Member
We wouldn't have to raise the minimum wage if it weren't for inflation. Just saying. The monetary policy in this country is garbage.
 
Maximus.

Maximus.

Member
It's only seen as being wrong because of the greedy owners in the industry. Fuck all this greed and allow people to make a better wage, whether they need it to get through school or don't have the skills to be doing anything else.
 
C

ClassyPenguin

Banned
Kad5 said:
We wouldn't have to raise the minimum wage if it weren't for inflation. Just saying. The monetary policy in this country is garbage.
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oh boy here it starts.

Inflation has helped create wealth and grows the economy. It's controllable and we are not not in any over inflation situation.
Monetary policy has little to do with wages being stagnated or why our minimum wage and labor laws are so backwards.
 
S

Spongebob

Banned
It can only go up so much...

The real solution is for people to who work low skilled jobs to get skills and try to get jobs that pay more. Raising the minimum wage can only do so much (not a lot). It's not as if they're going to double minimum wage.

Also, since when were minimum wage jobs supposed to provide enough income to live on?
 
Z

ZaCH3000

Member
KHarvey16 said:
What are you talking about? The rise to $10.10 isn't supposed to keep up with inflation, it's supposed to make up for all the time it didn't move.

And why would you ever want to include volatile commodities in a measure of the value of money?
Click to expand...

Okay, that is the impression I got from reading the article. This bill is good for the labor force.
 
F

Ferrio

Banned
Spongebob said:
It can only go up so much...

The real solution is for people to who work low skilled jobs is to get skills and try to get jobs that pay more. Raising the minimum wage can only do so much (not a lot). It's not as if they're going to double minimum wage.
Click to expand...



Then who's going to do those jobs? You need people in those jobs, our society is dependent on it. Why punish them for doing something we need?

Also, since when were minimum wage jobs supposed to provide enough income to live on?
Click to expand...
WHAT??!
 
S

speculawyer

Member
HermanCainGrin.gif


He was responsible for blocking it for years.
 
P

perfectchaos007

Member
Well someone has to feel the brunt of this wage hike and it won't be the CEO's. More than likely the consumer will pay higher prices for the food or store managers would drop down to a salary more comparable to the employees they manage.
 
D

Dead Man

Member
Spongebob said:
It can only go up so much...

The real solution is for people to who work low skilled jobs to get skills and try to get jobs that pay more. Raising the minimum wage can only do so much (not a lot). It's not as if they're going to double minimum wage.

Also, since when were minimum wage jobs supposed to provide enough income to live on?
Click to expand...

Holy shit. Outlandish troll or utter moron?
 
G

giga

Member
Kad5 said:
We wouldn't have to raise the minimum wage if it weren't for inflation. Just saying. The monetary policy in this country is garbage.
Click to expand...
Surely you're not talking about the past few years, where inflation has been generally low and in control.
 
U

ultim8p00

Banned
Spongebob said:
It can only go up so much...

The real solution is for people to who work low skilled jobs to get skills and try to get jobs that pay more. Raising the minimum wage can only do so much (not a lot). It's not as if they're going to double minimum wage.

Also, since when were minimum wage jobs supposed to provide enough income to live on?
Click to expand...

This is the dumbest post I have ever read in the history of Gaf. You really think people shouldn't be able to live on minimum wage?
 
S

Spongebob

Banned
ultim8p00 said:
This is the dumbest post I have ever read in the history of Gaf. You really think people shouldn't be able to live on minimum wage?
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Yes, that's what I think. If my thinking isn't inline with reality then please tell me how I'm wrong.

Dead Man said:
I like the insinuation that you ARE adding something to the discussion. Hey, have fun, I'll just watch.
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I don't see how my post wasn't adding anything to this discussion. I posted what I thought about a possible increase to minimum wage and what I think would be a better long term solution. Once again, If my thinking is wrong I'd seriously like to know why it is.
 
B

Bombadil

Banned
This would be asking the wealthiest business owners to reduce their profit forecasts.

Guise, that's not what capitalism is about.

Yes, that's what I think. If my thinking isn't inline with reality then please tell me how I'm wrong.
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It is in line with reality. There are many douches in real life.
 
D

demon

I don't mean to alarm you but you have dogs on your face
Fuck restaurants. What are they the only industry that has been immune to what rise there's been in minimum wage for a while now, thanks to Herman Cain and his lobbying? It's time they start paying their employees like a normal fucking business. I say if they can't then good riddance.

Yes, that's what I think. If my thinking isn't inline with reality then please tell me how I'm wrong.
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If a business can survive off of your labor then you should be able to survive off if their pay.
 
K

KHarvey16

Member
demon said:
Fuck restaurants. What are they the only industry that has been immune to what rise there's been in minimum wage for a while now, thanks to Herman Cain and his lobbying? It's time they start paying their employees like a normal fucking business. I say if they can't then good riddance.
Click to expand...

On average tipped waiters and waitresses make more than minimum wage.
 
K

Kad5

Member
Some posters called into question my blame on monetary inflation. I will concede that it may not be the primary factor in the need to raise the minimum wage right now (although I can argue it plays a part.). But people also have to keep in mind that when you have a federal increase in the minimum wage something has to give. These kinds of policies can have unintended consequences.

It can either increase the cost of goods and services overall or raise the youth unemployment of this country. Perhaps this won't affect big conglomerates nearly as much (like wal-mart) but it will definitely hurt small businesses the most.


An increase in the federal minimum wage may affect California differently than say West Virginia or Mississippi.


Also, did you guys know that in Germany, Sweden, and Denmark they don't even have a minimum wage? They have something called collective bargaining where wages are handled mutually between the employer and employees.
 
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