Social Minimum Wage now at $20 an hour in California

[Helden]

maybe not dominos but according to this article, pizza hut laid off 2000 drivers. https://abc7.com/pizza-hut-layoffs-california-delivery-drivers-fast-food-minimum-wage/14229041/
Also a couple round table pizza places said they would do the same although it was just handful of locations so much smaller numbers.

In california, being in the bottom 25% of uber eats delivery drivers still nets you $1 more per hour than being a $16 per hour delivery driver for a pizza chain

 

[llperez22]

In california, being in the bottom 25% of uber eats delivery drivers still nets you $1 more per hour than being a $16 per hour delivery driver for a pizza chain

we'll see if uber eats employment off sets the jobs lost at the companies. Also because uber eats delivery costs customers more than traditional delivery from the stores directly, its possible we dont see customers ordering delivery at the same rate resulting in a net loss of jobs.

 

[Helden]

we'll see if uber eats employment off sets the jobs lost at the companies. Also because uber eats delivery costs customers more than traditional delivery from the stores directly, its possible we dont see customers ordering delivery at the same rate resulting in a net loss of jobs.

I guess we'll see, personally im all for minimum wage workers earning more. The insane profits massive chains like Dominos or Pizza Hut rake in a year will not be impacted by a minimum wage of $4 on a massive scale. Their CEOs will still be able to buy their mansion cruiseships and custom bred sex slaves.. or whatever people with that kind of money do

 

[maximus__]

If they have a job that is included in this, then of course they will. Although not sure if going from 16 dollars to 20 dollars will necessarily remove you from the paycheck to paycheck demographic. Also we will need to see what happens with job layoffs or reduction in hours. For example a couple major pizza chains have already said they will discontinue delivery services in California due to the wage hike. Customers will have to rely on third party delivery apps which cost quite a bit more than traditional delivery fees. All I’m saying is I’m curious to see how this plays out in the long run as I don’t think just saying wage hike automatically equals good results on the whole.

Like every other developed country in the world that has been doing this for years?

The world exists outside the US. We all have the same inflation issues, mostly free healthcare and pay people liveable wages.

Bigger businesses won't implode. Just go buy your coffee from a smaller store and visit restaurants instead of buying cheap bulk takeaway occasionally.
Go pick your pizza up instead of getting it delivered or go out for a meal.

 

[llperez22]

Like every other developed country in the world that has been doing this for years?

The world exists outside the US. We all have the same inflation issues, mostly free healthcare and pay people liveable wages.

Bigger businesses won't implode. Just go buy your coffee from a smaller store and visit restaurants instead of buying cheap bulk takeaway occasionally.
Go pick your pizza up instead of getting it delivered or go out for a meal.

i dont know what the minimum wage is other countries. Im all for livable wages and healthcare assuming the negatives dont outweigh the positives. I also realize major business wont suddenly collapse. All Ive said is that we will see how this effects the people here in california as I think there is potential for unintended issues arising. We are literally seeing people lose their jobs already. Simply saying "pick your pizza up instead of having it delivered" doesnt help the thousands who were just laid off from their delivery jobs all over the state.

edit: I just googled minimum wages around the world and it does not appear that the rest of the western world already has an equivalent of 20$ american so Im not sure what you mean? https://en.wikipedia.org/wiki/List_of_countries_by_minimum_wage

How do minimum wages compare across Europe in 2024?

The EU's new directive aims to set an international level such as 60% of the gross median wage for the minimum wage. It also call for regular revisions to ensure pay levels remain up to date.

www.euronews.com

 

[maximus__]

i dont know what the minimum wage is other countries. Im all for livable wages and healthcare assuming the negatives dont outweigh the positives. I also realize major business wont suddenly collapse. All Ive said is that we will see how this effects the people here in california as I think there is potential for unintended issues arising. We are literally seeing people lose their jobs already. Simply saying "pick your pizza up instead of having it delivered" doesnt help the thousands who were just laid off from their delivery jobs all over the state.

They were laid off because people have been buying shitty bulk takeaway/goods for years to save a couple bucks. People created this problem.
It's the same with the tipping culture in the US to subsidize shitty wages.

Pay people for quality products, foods and goods instead of buying starbucks and pizza hut because it's cheap.
Same with deliveries. Pay the local pizza shops a bit more and they will fill the niche that pizza hut left by delivering a good quality pizza.

 

[Mr Holmes]

Bring that energy to 2024 election please, I'm sure right winger hatred for middle and lower class citizens is going to do wonders for their already plummeting popularity

Another one

 

[BreatheSherBro]

People who say this don't think things through.

If it's supposed to just be work experience, how are the employees supposed to live while earning it?

I know, I know...no adult should be working there since it's a job for college kids or some other claptrap. Because every coffee shop is conveniently located for college students to get to work. No coffee shop would ever need employees at times that might not be convenient for the college student crowd.

And those non-college student employees don't need a livable wage because "coffee shop barista" is a jumping off point to some unknown high wage career that will magically become available within 6 months of landing a job at the coffee shop. (I head Goldman Sachs and Tesla regularly recruit from Dunkin Donuts because of the massive experience they get. )

People really should think beyond the superficial throwaway phrases.

I get the point that you are making, but is "living wage" itself not a superficial throwaway phrase?

These people were still living before the minimum wage increase. They still qualify for government benefits since they are still below the poverty line.

What's changed and why was the change necessary? They momentarily have a little more money for non-essential things, but most of that will be eroded by inflation. They are benefiting short term, at the expense of everyone.

Is that something that government should promote? It's going to really hurt those who were making just above minimum wage. They are now effectively poorer and are close to slipping back down into minimum wage status. Their wage might increase some but it won't be equal to the minimum wage hike that those below them just recieved because there is no real incentive for buisness owners to give them an equal increase.

 

[ColemanwastheGOAT]

Another one

If you don't want them to lose their jobs, you hate them lol

 

[PBAC]

these things can be balanced out with other incentives like introducing cash for recycling services. If society worked so everything we have or throw out can be exchanged we'd have much more without always relying on wage.

 

[jimjamjammer]

If you don't want them to lose their jobs, you hate them lol

 

[Sinister]

I get the point that you are making, but is "living wage" itself not a superficial throwaway phrase?

These people were still living before the minimum wage increase. They still qualify for government benefits since they are still below the poverty line.

What's changed and why was the change necessary? They momentarily have a little more money for non-essential things, but most of that will be eroded by inflation. They are benefiting short term, at the expense of everyone.

Is that something that government should promote? It's going to really hurt those who were making just above minimum wage. They are now effectively poorer and are close to slipping back down into minimum wage status. Their wage might increase some but it won't be equal to the minimum wage hike that those below them just recieved because there is no real incentive for buisness owners to give them an equal increase.

This wouldn't be an argument if we didnt live on a system that favored corporations so much that them chasing unlimited growth and profitability came at the expense of the working class. I mean just look at all the fear-mongering going on on in here that the corporations will pay the wage, increase the prices (like they didnt do that anyway), crush the small businesses (like they didn't do that anyway), etc. And like I said earlier this spiel usually comes from those who vote for politicians who espouse deregulation, which is something these exact corporations want. Unless of course we're talking about them appealing to the markets of gay, trans, or minorities, then regulate the f*ck out of them.

We acknowledge the imbalanced power and influence corporations have, and yet behave as if there is NO viable answer. Getting paid more at your job? Corporation will just charge more. Got more money for your house? You'll just get charged more. Refusal to address this through legislation brings about the kind of wealth gap width we see in developing Nations where working people are already constantly uncomfortable because the non-working class wants them uncomfortable and afraid of not ever having anything...while lobbying for policies that assure they will never have anything despite their hard work, we should be beyond this. Sean Fain knows what's up:

 

[panamaican]

I get the point that you are making, but is "living wage" itself not a superficial throwaway phrase?

These people were still living before the minimum wage increase. They still qualify for government benefits since they are still below the poverty line.

What's changed and why was the change necessary? They momentarily have a little more money for non-essential things, but most of that will be eroded by inflation. They are benefiting short term, at the expense of everyone.

Is that something that government should promote? It's going to really hurt those who were making just above minimum wage. They are now effectively poorer and are close to slipping back down into minimum wage status. Their wage might increase some but it won't be equal to the minimum wage hike that those below them just recieved because there is no real incentive for buisness owners to give them an equal increase.

First, it's not going to hurt anyone making just above minimum wage. They are not poorer. Their wages have not changed. It sounds like a status argument, not an economic one. It's like saying that if your subordinate gets a raise, you're now poorer because the difference between your incomes isn't a big as before.

That fits within the theme that people's gripe is about relative wealth, the "I make more than you so I'm better than you" school of economic thought that tends to pervade discussions about the poor. But it's not an economically sound reason against raising the minimum wage.

Additionally, most of their increased wages will not be eroded by inflation. Raising the minimum wage for fast food workers doesn't affect the cost of anything except buying fast food. If the cost of meat or bread or utilities were going up via inflation, it would happen regardless of what you pay fast food workers. The fed isn't raising interest rates because of this.

As for the actual wage recipients -- This probably allows them to afford essential things that they might have been foregoing because of the cost. The general minimum in California is $16.00. An extra $4.00 per hour is $8k a year. That's a significant difference for people who are paying rent or need to manage a car note.

Why was the change necessary? Probably because the state legislature recognized that a sizeable portion of their workforce was working in this industry and was incapable of meeting their economic needs. This failure resulted in those people hitting the welfare rolls at a rate high enough to make the state look twice at the industry. Considering all of the other health and social risk factors attached to fast food, the legislature decided to shift a greater percentage of the economic burden of the industry on to the corporations that profit from said industry.

The idea of a livable wage isn't a throwaway phrase and I don't have a problem with throwaway phrases. I have a problem with people who don't think beyond the phrase and can't address the actual reasoning why said phrases exist. A livable wage, while undefined, is generally meant to be a wage that an individual can successfully live on. Not get rich or anything like that. Just a wage where if they're putting in a legit 40 hour work week, they shouldn't have to struggle to make ends meet at the basic level and they shouldn't be shifting an unreasonable amount of their needs onto the state.

The comment that people working in fast food don't need a livable wage shows a lack of thought because, as I mentioned, nothing about fast food means that the people working in it shouldn't able to meet their basic economic needs. And attaching it to "work experience" is even less well thought out because it's not work experience for any job other than more fast food work.

 

[DiddlyDoodly]

Well, I see that workers are already being laid off, hours are being cut, franchises are closing, and menu prices are increasing.

So who is actually benefitting from this?

 

[Jar of Flies]

Isn’t this the same story every single time minimum wage is raised? When I first started working minimum wage in my state was $5.15/hour. Shortly after I started they raised the state minimum wage to $5.50 and all the same “get ready for prices to skyrocket and mass layoffs” arguments poured in. Nothing changed then, and nothing will change now. Not even sure what minimum wage is now but it’s probably not far off from what it is in California.

 

[Killer Whale]

Anybody defending the price increase is a naive fool.

 

[Spounman]

https://www.zerohedge.com/economics...-food-chains-20-minimum-wage-law-takes-effect

Mass Layoffs Begin At California Fast Food Chains As $20 Minimum Wage Law Takes Effect​

This result shouldn't surprise anyone. Inflation has driven up operational costs for businesses across the US and shrunk profit margins for major food chains in the past few years. This has led to higher menu prices (like the "$18 Big Mac") and slowing sales for every major fast food company. Another anchor dragging on the restaurant business in many regions was at least two years of covid stimulus coupled with rent moratoriums, creating aggressive labor shortages and raising wages in upwards of $16 per hour for brand new no-skill employees.

Small chains and mom-and-pop businesses simply can't compete. Larger chains raised prices but have also been forced to reduce employees and labor costs through automation, but the layoffs are just getting started.

Enter California's "FAST Recovery Act" passed into law in 2022 and going into effect in April of this year - The legislation requires a particular set of food chains dealing in certain kinds of products outlined in the law to raise their minimum wages (already at $16 an hour on average) to $20 an hour. The income increase is limited to chains that have 60 or more locations in the state of California (meaning, the combined number of locations regardless of who owns them must be higher than 60) Keep in mind that while many of these chains are associated with international corporations, they are owned and run by franchisees; they are still family run businesses.

 

[Spounman]

Well, I see that workers are already being laid off, hours are being cut, franchises are closing, and menu prices are increasing.

So who is actually benefitting from this?

Typical libs (many examples in this thread) think it's a huge W for the minimum wage worker

 

[spamking]

Coffee is like the dumbest thing to waist money on. It's crazy how many people I see sipping on a $6.75 cup of ice and brown sugar water. I can make a better cup of drip than any Starbucks in the comfort of home.

Waist? Because it goes straight to your waste?

And I agree . . . my coffee pot does just fine and makes a mean cupa joe.

 

[ColemanwastheGOAT]

Anybody defending the price increase is a naive fool.

These are the same people sahing Joe Biden is doing a good job. They're just rooting for the home team. That's all it is. They don't give two shits about the people impacted.