Posts tagged labor costs
Op-ed: The Bad Teamsters Bargain With UPS
October 30, 2025 // Businesses that lose money and are uncompetitive won’t survive. See trucking company Yellow Corp., which filed for bankruptcy in 2023 in part owing to Mr. O’Brien’s labor militancy. Mr. O’Brien refused concessions and tweeted an image of a tombstone “Yellow: 1924-2023.” UPS doesn’t want to be Mr. O’Brien’s next victim. The Teamsters boss has insisted that its contract requires UPS to create 30,000 jobs. He hasn’t read the fine print—or is misleading his members. UPS merely committed to giving part-time employees a chance to apply for some full-time job openings. If UPS reduces job openings, workers don’t have an opportunity to fill them.
America Doesn’t Have Enough Weapons for a Major Conflict. These Workers Know Why.
October 28, 2025 // Historically, in the fight against their bosses, unions have had only one real weapon to wield: their numbers. The primary goal of a labor strike is to blockade production and inflict pain on the company so that it will negotiate better terms. But in Orlando, it was hard for the union to enlist enough workers for the fight. Florida is a “right to work” state, meaning that union membership is optional. Workers in an organized factory are free to return to their stations and get back to work, leaving everyone else on the picket line to fight for a contract that would eventually apply to everyone.
Lessons from D.C.: Why “$30 by ‘30” Wage Plan Could Leave Servers with Less
October 26, 2025 // Mr. Mamdani’s plan is being aligned with a renewed push by progressive New York legislators to eliminate the tipped-wage system, which would require restaurant workers to be paid the same minimum wage as all other tipped-wage positions. Legislation has been percolating in Albany in recent years that would phase out the tipped wage by 2028, with a prominent “Living Wage for All Coalition” now launching to guide the effort to fruition. Behind the coalition is the group One Fair Wage, which has been spearheading a systematic effort to eliminate the tipped-wage system in progressive jurisdictions across America. One Fair Wage has seen success in large cities such as Chicago and Washington, D.C., but as these policies take hold, the economic reality is starting to bite.
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.