As many cities across the increase their minimum wage in response to growing ‘Fight for $15′ demands, businesses are warning workers about the rarely considered consequences of such efforts.
Citing the disastrous effects seen in Seattle following the left’s incessant bid to increase base pay for unskilled labor such as fast food jobs, businesses from California to Illinois warn that higher minimum wages stand to backfire on employees in a major way.
From higher costs being passed on to the consumer, to layoffs and staffing cuts, Los Angeles Chamber of Commerce President Gary L. Toebben painted a grim picture in terms of the movement’s actual costs.
Explaining that the demand for higher wages effectively limits of the options for businesses, Toebben stated that “We know employers have three options: raise prices, reduce number of employees or cut employee hours.”
In other words, those in support of this movement are fighting their way to the unemployment line because money does not simply grow on trees…
In cities stretching from California to Illinois to Oregon, minimum wages increased up to $15.20 on July 1, the start of their fiscal year.
But following in Seattle’s footsteps in the ‘fight for $15’ could come with complications.
In Pasadena, Calif., the hourly minimum also went from $10.50 to $12. Local Chamber of Commerce President Paul Little said he was already hearing about businesses cutting staff in the run-up to the increase.
“We’ve been hearing from restaurant and retail members that they can’t sustain. Folks at the low end are letting people go,” Little said.
In San Francisco, manager of the Pier Market seafood restaurant Steve Barnes said he’ll have to “paddle out more money or rearrange our staffing” to keep pace.
“Like any other business, we’re going to try to use less hours if we can,” he said.
The jump in pay has faced a mixed reception in Cook County. A day before the new wage took effect, a rally was held outside an Evanston council meeting where protesters decried the increase, saying it would hurt businesses and drive some out of town.
President of the Illinois Chamber of Commerce Todd Maisch said it won’t be the last protest if local governments continue to “exceed their authority.”
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