Posts tagged labor costs
California’s fast-food minimum wage is super-sizing job losses
July 15, 2025 // The damage for California doesn’t stop at job losses, as CEI has noted previously. The vast majority of California’s fast-food workers, 89 percent, have had their work hours reduced. Another 35 percent have seen their supplemental benefits reduced. Customers suffer as well. Menu prices for Golden State restaurants rose 14.5 percent between September 2023 and December 2024, nearly double the national rate of 8.2 percent for restaurants. Prices jumped 3 percent in the month after the minimum wage hike went into effect. Americans across all income groups eat fast food, but the core consumers are low-income families according to the Morning Consult. Any price increase is going to hit them the hardest.
How the Teamsters Cost 30,000 People Their Jobs
July 10, 2025 // "That's true," says Palagashvili. "[Yellow Corp] was having a lot of financial issues. But if you're on the verge of collapse, the last thing you need is a Teamsters Labor Union contract that says you have to increase labor costs. Yellow is basically covered in gasoline, and Sean O'Brien comes and lights the match." Meanwhile, union leadership help themselves. The Teamsters now brag that it has $1 billion in assets. Sean O'Brien pays himself more than $430,000 per year. The same year Yellow went bankrupt, United Auto Workers went on strike against Stellantis, the company that owns Chrysler. Stellantis gave in, giving the UAW a pay raise and promising to open a new plant. But then Stellantis started laying off workers: 1,340 during the strike and 2,450 more the next year.
How affordable housing in National City became a cash machine for San Diego County labor unions
July 9, 2025 // Public records show these same union leaders, who manage the coalition and the apartments, also direct political action committees that help channel rent and laundry payments into various political causes. Since 2016, about 11 cents of every dollar collected from tenants has been used to influence elections for city councils and school boards across the region, finance ballot initiatives that advance labor interests and pay these same union leaders six-figure salaries.
$30 Minimum Wage Has L.A. Hotel Owners in Revolt
June 24, 2025 // Now, hotel owners have to contend with what local union leaders say will be the highest minimum wage in the country. The city council voted last month to boost the wage for workers in hotels with 60 rooms or more. Hourly pay, currently $20.32, will increase every year until it reaches $30 in 2028. The industry is mounting an effort to roll back the new minimum-wage law. Los Angeles hotel owners are petitioning to suspend the city’s new ordinance, and several hotel owners have also threatened to pull out of agreements to provide blocks of rooms during the Olympic Games. Some hoteliers say they were already eager to exit L.A., if only they could find an offramp. “We would love to sell” our L.A. hotels, said Jon Bortz, chief executive of Pebblebrook Hotel Trust, which owns two hotels in the city and seven more in the L.A. area. “But nobody will buy them.”
LA Passes $30 Minimum Wage for Hotel, Airport Workers
May 15, 2025 // "Hotel employees in Los Angeles are paid the highest wages in the country, but right now their jobs are at risk,'' said Rosanna Maietta, CEO of the American Hotel and Lodging Association, at a press conference last month. "City leaders are considering a damaging proposal that will jeopardize these jobs; it would devastate much needed tourism related tax revenue and lead to the closure of hotels that are desperately needed to successfully host the 2026 World Cup, the 2027 Super Bowl and the 2028 Olympics."
Do More Powerful Unions Generate Better Pro-Worker Outcomes?
May 15, 2025 // Unionization is generally associated with higher wages for lower-skilled unionized workers.[37] However, when unionized sectors set higher wages, excess workers shift to nonunionized sectors, increasing the labor supply and lowering wages for lower-skilled nonunion workers.
LETTER: Congress must reject proposed job-killing labor legislation
April 20, 2025 // However, a new threat to Kansas business owners has emerged in the form of a legislative framework that the Institute for the American Worker has dubbed the “PRO Act Lite,” modeled after the failed policies of Senator Bernie Sanders and other progressive lawmakers. While it may come with a new label, the substance remains the same. This proposal would drive up labor costs, stifle economic opportunity, and make it significantly harder for employers to create jobs.
Blackburn: By reining in federal labor unions, Congress can cut down on government waste | OPINION
March 27, 2025 // That’s why Sen. Mike Lee (R-Utah) and I recently introduced the Federal Workforce Freedom Act, which would put a stop to all collective bargaining agreements between federal agencies and labor unions. Among its provisions, this legislation would prohibit federal employees from participating in labor unions for the purposes of collective bargaining, ban federal agencies from engaging in collective bargaining negotiations, and immediately terminate all collective bargaining agreements.
Lawmakers propose banning all federal labor unions
March 17, 2025 // “This legislation would end federal labor unions and immediately terminate their collective bargaining agreements to ensure the federal government is working on behalf of the American people – not labor unions – by increasing the productivity of its workforce,” Blackburn said in a statement. If passed, the bill would affect 25% of the federal employee workforce who are members of public sector unions, according to the U.S. Bureau of Labor Statistics.
California’s $20 Fast-Food Minimum Wage: Job Losses, Higher Food Prices, Increased Automation
February 19, 2025 // The BRG study found, “California’s fast-food restaurants lost 10,700 jobs between June 2023 and June 2024, making it the worst performing year outside of a recession, and the COVID-19 pandemic. Additionally, food prices at local restaurants have increased by 14.5% since the legislation was signed, nearly double the national average. AB 1228 was signed into law in October 2023 by Governor Gavin Newsom, creating the new $20 minimum wage for fast food employees – a massive 25% increase from the $16 minimum wage.