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Tuesday, February 13, 2007

Minimum Wage Update #9 - Coming Soon

Coming soon to a fast food joint near you...

From the Arizona Republic last week:

New wage boost puts squeeze on teenage workers across Arizona
...the state's new minimum-wage law that went into effect last month. Some Valley employers, especially those in the food industry, say payroll budgets have risen so much that they're cutting hours, instituting hiring freezes and laying off employees.

And teens are among the first workers to go.

Companies maintain the new wage was raised to $6.75 per hour from $5.15 per hour to help the breadwinners in working-poor families. Teens typically have other means of support.
There's that "breadwinners" word again. I still have yet to hear from one single solitary person who raises a family on the minimum wage. Not one. And I'm offering a reward of up to $300 dollars (more than a week's wages) reward in order to find one. See: $100 Minimum Wage Challenge!!!

By the way...those teens' "other means of support" is usually Mom and Dad. So, although there aren't currently any lawmakers advocating an increase in their allowance, they'll be asking for one to make up the difference.
Mark Messner, owner of Pepi's Pizza in south Phoenix, estimates he has employed more than 2,000 high school students since 1990. But he plans to lay off three teenage workers and decrease hours worked by others. Of his 25-person workforce, roughly 75 percent are in high school.

"I've had to go to some of my kids and say, 'Look, my payroll just increased 13 percent,' " he said. " 'Sorry, I don't have any hours for you.' "

Messner's monthly cost to train an employee has jumped from $440 to $580 as the turnover rate remains high.

"After a wage hike, employers seek to take fewer chances on individuals with little education or experience," one institute researcher told lawmakers in 2004.
I also love it when they find the single sole business owner who "supports the increase" again after they raise the minimum wage...
Tom Kelly, owner of Mary Coyle Ol' Fashion Ice Cream Parlor in Phoenix, voted for the minimum-wage increase. But he said, "The new law has impacted us quite a bit."

It added about $2,000 per month in expenses. The store, which employs mostly teen workers, has cut back on hours and has not replaced a couple of workers who quit.

Kelly raised the wages of workers who already made above minimum wage to ensure pay scales stayed even. As a result, "we have to be a lot more efficient" and must increase menu prices, he said.
Bwahahaha...

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