Posts tagged labor costs
Restaurant Minimum Wage Hurting Businesses and the Workers Proponents Seek to Help
January 10, 2025 // For fast food operators, it’s not just this latest minimum wage increase. Since 2013, their minimum wages have increased from $8 to $20, which is 2.5 times. It’s unsurprising that they’re slashing jobs, cutting hours and raising prices. This also coincides with a major turn towards automation. Of course, automation is driven by many factors, not just increased labor costs – but they certainly don’t help.
California fast food restaurant owners warn that hiking $20 minimum wage will ‘cripple’ them
January 8, 2025 // The council, which consists of 10 members appointed by the governor, is empowered to raise the minimum wage by up to 3.5% — or the annual rate of inflation each year — beginning Jan. 1 of this year. The union representing fast food workers has accused restaurant owners of cutting employee hours in response to the wage increase — all but offsetting the hike in wages.
Opinion: What Buc-ee’s Can Teach Us About the Port Strike
October 12, 2024 // They care most about sheer numbers, from which both union dues and political power—and thus the leaders’ incredibly high salaries—are derived. So, they’ll fight like hell to keep the people they have, even as doing so contradicts not only the economics—and real-world lessons like Buc-ee’s—but also our current labor market reality, in which workers, not jobs, are increasingly scarce. In that world, it makes oodles of sense to embrace automation and other productivity enhancements, whether at the ports or anywhere else, and any other benefits are just the barbecue sauce on top. In the union’s world, however, the system’s working perfectly, and the government-protected sauce already flows.
The long-haul harms of an East Coast port strike and automation ban
October 1, 2024 // But the problem with banning automation is that just as automated tollways enable cars and trucks to move more efficiently across the roadways, automated gates and other port operations enable goods to move more efficiently into, out of, and throughout the U.S. The lack of automation is a primary reason that U.S. ports rank near the bottom of global port efficiency ratings. According to the World Bank’s 2022 Port Performance Index, the average North American port ranking is three times lower than East Asian ports, almost twice as bad as Central American, South American, and Caribbean ports, and not far ahead of sub-Saharan African ports. One of the most efficient ports in the U.S., ranked No. 44 out of 348, is Virginia Beach. It’s likely not a coincidence that the Virginia Beach port is one of the only ones that includes some automation, which Daggett said the ILA was forced to inherit. The Mobile port ranks No. 238, and five other East Coast ports rank No. 300 or worse, with Savannah, Georgia’s port ranked dead last in the world.
Robert Boland: The future of college athlete pay hinges on the presidential election
September 25, 2024 // Most athletes would stand to gain much more from the actions of the NLRB, which could permanently classify collegiate athletes as employees of their universities. This would afford them not only the right to wages but also additional employee benefits such as workers’ compensation, unemployment insurance, and the right to both unionize and collectively bargain with their schools. The Biden-Harris administration — as well as its NLRB appointees — has been very labor-friendly, and we could expect a Harris-Walz administration to maintain the same approach. However, Republican appointees would be more likely to reject unionization and maintain the NCAA’s status quo — however uncertain — without granting student-athletes employee status or benefits.
Diner Chain Waffle House Underpaid Workers, Union Alleges in Federal Complaint
September 24, 2024 // According to the complaint, servers spent on average two to three hours of a seven-hour shift performing non-tipped work. The USSW estimates servers lose as much as $46.8 million in unpaid wages annually due to the alleged violations. These infractions are not uncommon in the industry: a 2012 Labor Department investigation of more than 9,000 restaurants found more than 84% of them violated tip credit rules, resulting in millions in lost wages.
Strikes start at top hotel chains; housekeepers seek higher wages, daily room cleaning
September 2, 2024 // The union hopes to build on its recent success in southern California, where after repeated strikes it won significant wage hikes, increased employer contributions to pensions, and fair workload guarantees in a new contract with 34 hotels. Under the contract, housekeepers at most hotels will earn $35 an hour by July 2027. The American Hotel And Lodging Association says 80% of its member hotels report staffing shortages, and 50% cite housekeeping as their most critical hiring need. Kevin Carey, the association's interim president and CEO, says hotels are doing all they can to attract workers. According to the association's surveys, 86% of hoteliers have increased wages over the past six months, and many have offered more flexibility with hours or expanded benefits. The association says wages for hotel workers have risen 26% since the pandemic.
Commentary: Kamala Harris Is Bad News for Gig Workers
August 8, 2024 // Though framed as an overdue deliverance for besieged workers, AB 5 was a gift to labor bosses who dreamed of organizing California gig workers, especially ride-share drivers, and who lusted after the potential dues they could rake in. It was also one of the most-detested laws passed in California in memory. There was no grassroots movement behind AB 5, no uprising among freelancers. It was a top-down scheme fueled by union agitation and then, like so many other lousy public policies hatched in California, unleashed across the country. AB 5’s impact was immediate — and ugly. Workers’ opportunities were narrowed. Many lost their incomes. Businesses faced higher labor costs, and entrepreneurs felt the chill of the dead hand of activist policy-making. The promise of the gig economy, expected to expand globally by roughly 123 percent over the next five years, turned bleak in California. With their businesses in the balance, Uber, Lyft, and DoorDash generously funded a ballot initiative, Proposition 22, that would classify “drivers for app-based transportation (rideshare) and delivery companies as ‘independent contractors,’ not ‘employees.’” Voters approved it overwhelmingly. App-based drivers favored Prop. 22 — four out of five said they were “happy” that it passed, 76 percent said it “benefits me personally,” and 75 percent recommended that lawmakers pass “similar laws in other states so drivers across the country can benefit.”
Fury as one of America’s oldest companies slashes jobs in the Midwest as it shifts work to Mexico: ‘It’s greed’
June 30, 2024 // The layoffs come after 10,000 unionized John Deere workers went on strike for five weeks in October 2021. The strikes were among the most prominent during 'Striketober', where thousands of workers from Nabisco, Kellogg's, McDonald's and others walked out for weeks or even months to protest low pay in the wake soaring company profits.
The astonishing number of fast food jobs lost – and restaurants shut – because of California’s new $20-an-hour minimum wage
June 11, 2024 // When the Democrat governor signed the law in 2023, Newsom said the state was getting 'one step closer to fairer wages, safer and healthier working conditions, and better training by giving hardworking fast food workers a stronger voice and seat at the table.' But Republican critics claimed the wage hike would simply mean workers are replaced with self-checkouts and 'robot cooks.' Harsh Ghai, a Burger King franchisee with 140 restaurants on the West Coast announced in April how he planned to have digital kiosks installed in all his locations in two months.