Seattle's $15 Minimum Wage Hike Already Shows Some Unintended Consequences
Perks that came with jobs are disappearing, for one, and employees are paying in other ways.
At United Liberty, Matthew Hurtt writes:
Earlier this month, Seattle voted to raise its minimum wage gradually to $15 by the year 2020. Unlike the SeaTac wage hike, Seattle's hike will apply to all businesses.But 15 minutes south near the Seattle-Tacoma International Airport, employees are already seeing the negative effects of such a hike. A February report from the Seattle Times revealed:
At the Clarion Hotel off International Boulevard, a sit-down restaurant has been shuttered, though it might soon be replaced by a less-labor-intensive cafe...Other businesses have adjusted in ways that run the gamut from putting more work in the hands of managers, to instituting a small "living-wage surcharge" for a daily parking space near the airport.
That's not all. According to Assunta Ng, publisher of the Northwest Asian Weekly, some employees are feeling the pinch as employers cut benefits. She recalls a conversation she had with two hotel employees who have been affected by the wage hike:
"Are you happy with the $15 wage?" I asked the full-time cleaning lady."It sounds good, but it's not good," the woman said.
"Why?" I asked.
"I lost my 401k, health insurance, paid holiday, and vacation," she responded. "No more free food," she added.
The hotel used to feed her. Now, she has to bring her own food. Also, no overtime, she said. She used to work extra hours and received overtime pay.
What else? I asked.
"I have to pay for parking," she said.
I then asked the part-time waitress, who was part of the catering staff.
"Yes, I've got $15 an hour, but all my tips are now much less," she said. Before the new wage law was implemented, her hourly wage was $7. But her tips added to more than $15 an hour. Yes, she used to receive free food and parking. Now, she has to bring her own food and pay for parking.
Stop the presses! Money doesn't grow on trees! News at 11:00!
a_random_guy at June 1, 2014 1:43 AM
Don't worry this will mean more jobs.....for illegal immigrants.
Ppen at June 1, 2014 1:49 AM
Minimum wage laws might just be the single biggest STUPIDITY GENERATOR today.
Again, try to make others understand: the unit "one hour of work" cannot be changed for anyone – not individuals, not governments, not dictators.
So the only thing that can happen when the "minimum-wage" is raised is that the dollar is devalued.
THE MARKET WILL NOT PAY YOU MORE THAN YOU ARE WORTH.
Radwaste at June 1, 2014 3:51 AM
As the saying goes - a bad job is better than no job.
Soon so many folks will find that they have NO job - and how's that "minimum" wage going to work for them then?
Charles at June 1, 2014 8:54 AM
I've been saying for months now that nothing good was going to come out of this.
A lot of people are going to be replaced by machines.
Daghain at June 1, 2014 9:38 AM
And self-service.
Get ready to bag more of your own groceries, pump more of your own gas, eat at more fast food or buffet-style restaurants, etc.
And get ready to see a lot more unskilled workers unemployed and pissed off about it. Yeah, that'll be good for society.
Oh, and because some products require a human being to tote that weary load at some point in the manufacturing process, get ready for everything to cost more as the price of the totin' goes up.
Conan the Grammarian at June 1, 2014 9:50 AM
If the $15 minimum is not due to be fully implemented until 2020, why is this happening now? Are businesses just jumping the gun and deciding to be in compliance 6 years before they have to be? I'm not understanding this.
Deb at June 1, 2014 11:25 AM
Seattle itself just voted in the $15/h minimum wage, but one of its suburbs, SeaTac, which surrounds the airport, actually implemented the same last year. That's where the stories of the current effects are coming from.
Chris W at June 1, 2014 12:51 PM
Whenever I see the minimum wage debate, I've always bring out one fact: The real minimum wage is zero. If it cost business too much to hire you, you will not be hired.
BigFire at June 1, 2014 3:01 PM
Yeah, it's going to be fun to watch when the implications kick in. I'm guessing that there are a lot of Microsoft and Boeing employees who voted for it because they figured it was no skin off their nose -- those two companies don't hire many minimum-wage employees, so they probably figured it would have no effect on them. But wait unitl they can't get a morning coffee from Starbuck's anymore, or if they can, it comes from a machine and costs $10.
Cousin Dave at June 2, 2014 7:14 AM
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