Los Angeles $15 Minimum Wage

[arch stanton]

It really does give me great joy to see how much this eats away at the soul of people worrying that someone might get a raise they don't approve of.

[Tank]

that's not it at all, arch.

 

this whole $15 an hour movement is a false flag. if labor costs go up, then product costs will also go up. and if product costs go up, all of us are affected, and those wanting the wage increase are not going to gain much of anything. this is like spinning tires in the mud - they're not really making any progress.

[arch stanton]

Not really my point. I just enjoy the frenzy. The top of the food chain is devouring the country but it's the fast food workers who draw the fury of the masses.

[wopphil]

that's not it at all, arch.

this whole $15 an hour movement is a false flag. if labor costs go up, then product costs will also go up. and if product costs go up, all of us are affected, and those wanting the wage increase are not going to gain much of anything. this is like spinning tires in the mud - they're not really making any progress.

Very well said Tank. My feelings exactly.

[NrM]

 

The misconception that military personnel only make "x amount" bugs me.

It just isn't true when you factor in the benefits and other ways you can make money.

Edited June 2, 2015 by Poozy

[Stradling]

Yikes, if that chick knew what our store managers get paid she would move to Canada.

[Adam]

Strad is ball'n

[Jay]

It's true that the E1 also gets free room and board in addition to that salary.  And they eat pretty well in the military I can attest to that.

 

E1 in the military is an unskilled position.  After about a year they become E2.

[gotbeer]

Yikes, if that chick knew what our store managers get paid she would move to Canada.

 

I heard what they were paid 25 years ago.  They must be north of 6 by now.  

[halobob]

behold.. the future of every fastfood chain in Los Angeles.

 

 

No machine will **** up my order that's for sure.

We will now be seeing these not only in LA but in all of California.  California approves min wage increase to $13/hr by 2017:

http://abcnews.go.com/US/wireStory/california-senate-approves-minimum-wage-hike-31456941

[AngelsLongBall]

We will now be seeing these not only in LA but in all of California.  California approves min wage increase to $13/hr by 2017:

http://abcnews.go.com/US/wireStory/california-senate-approves-minimum-wage-hike-31456941

Wow.  Our company has always paid 100% of employees healthcare, plus provided 2 weeks vacation and other benefits (401k matching, life insurance, etc). 

I don't think we have too many people under $13/hr (mostly first or second year warehouse guys), but if this trend increases, we will have some hard decisions to make about continuing to pay health benefits that apparently don't count overall compensation.  Not to mention mandatory accrued sick time that will come to pass as law in July

[Glen]

behold.. the future of every fastfood chain in Los Angeles.

No machine will **** up my order that's for sure.

Yeah, I know. We never have problems with computers.

With or without a minimum wage increase we'll still be seeing more of these. Even at the current minimum wage they're cheaper than a human employee.

Edited June 2, 2015 by Glen

[Stradling]

I heard what they were paid 25 years ago. They must be north of 6 by now.

yes

[gotbeer]

So Stradling.  How is a company like In N Out going to handle this situation?  It probably will not affect In N Out as much, since they pay better.  But it's still going to affect them.

 

I was more thinking about the disparity that may come out of it instead of the bottom line.  Say a person in Brea starting out at whatever price.  Then you have the Hollywood location, which is within L.A., and they will eventually have to start at $15.

 

Or do you make it so that new hires never start in L.A., and only transfers that make that amount can go to the Hollywood location?

 

Human nature, if person A makes so much, and person B needs to work 2 years to get to what person A started at, there is bound to be issues.  

[NrM]

We will now be seeing these not only in LA but in all of California.  California approves min wage increase to $13/hr by 2017:

http://abcnews.go.com/US/wireStory/california-senate-approves-minimum-wage-hike-31456941

 

Yikes. So quick question then.

What happens to the promoted employees, like assistant managers and above?

 

For example. Walmart pays their floor managers around 13-15 dollars a hour. Obviously they're not going to work for the same wages as the lower level employees.

 

Or what about the person with a college degree working a specialized position making 15 bucks a hour with his 40 thousand dollar student loan debt. How is that going to fly when some dude working at mcdonalds that can barely speak english is making as much as him? 

 

This is just going to create some crazy domino effect.

 

 

A co-worker of mine is a Navy vet that has a BA in computer science. Very smart dude. Told me the only field related jobs he can find are in Northern California.

 

Maybe these corrupt ****s should be trying to add jobs and not driving them away.

Edited June 3, 2015 by Poozy

[Stradling]

Well if I read it correctly the $15 is a gradual increase over the next four years. We will probably go company or at least California wide increase similar to the minimum wage increase. So if minimum wage goes up by $1 a year we would do something similar. We will always pay better than minimum wage. What I can also assume is the cost will ultimately fall on our customers. Our profit margin, because of the quality of our product and the pay of our associates aren't as crazy as you might imagine. So if the average store sells 100 burgers a week and that same store uses 100 man hours a week, it's safe to say that the price of a meal will go up $1.

Edited June 3, 2015 by Stradling

[Stradling]

Yikes. So quick question then.

What happens to the promoted employees, like assistant managers and above?

For example. Walmart pays their floor managers around 13-15 dollars a hour. Obviously they're not going to work for the same wages as the lower level employees.

Or what about the person with a college degree working a specialized position making 15 bucks a hour with his 40 thousand dollar student loans debt. How is that going to fly when some dude working at mcdonalds that can barely speak english is making as much as him?

This is just going to create some crazy domino effect.

Just sent you a PM

[gotbeer]

Well if I read it correctly the $15 is a gradual increase over the next four years. We will probably go company or at least California wide increase similar to the minimum wage increase. So if minimum wage goes up by $1 a year we would do something similar. We will always pay better than minimum wage. What I can also assume is the cost will ultimately fall on our customers. Our profit margin, because of the quality of our product and the pay of our associates aren't as crazy as you might imagine. So if the average store sells 100 burgers a week and that same store uses 100 man hours a week, it's safe to say that the price of a meal will go up $1.

 

Sounds fair.  I think that will be the biggest domino effect everyone will see.  Prices of everything going up.  

[Stradling]

Sounds fair. I think that will be the biggest domino effect everyone will see. Prices of everything going up.

Of course. So in reality the wage increase won't really do much. In my opinion the people it helps are people who will get their wages increased and already have an affordable mortgage.

[wopphil]

We will now be seeing these not only in LA but in all of California. California approves min wage increase to $13/hr by 2017:

http://abcnews.go.com/US/wireStory/california-senate-approves-minimum-wage-hike-31456941

This isn't correct. The bill still has to get passed by the Assembly and then signed by Brown. Although both may happen, it isn't a given.

[Spirit]

That's true.  The Assembly and Brown may say $13 is too low and kick it back to be reworked at a higher amount. 

[HaloMagic]

We should just reduce the minimum wage. Since its going to for sure create a domino effect and all.

[arch stanton]

Yeah maybe that will reduce prices.

[Stradling]

We should just reduce the minimum wage. Since its going to for sure create a domino effect and all.

Hey HM, I believe there will be a domino effect, I logically can't see how it wouldn't be the case. Are you suggesting there doesn't have to be, if so how? This isn't a smart ass question I'm literally curious how it's possible. I've always assumed if you raise the floor then naturally the ceiling will raise. I've also assumed that if you raise operating costs then prices will raise. Now I've only been in leadership in one company so I get a lot of my opinions and values from growing up in that company, but is there another way.

Here's a scenario, let's say my company pays much more than minimum wage already so our labor costs don't have to go up. However because of the wage increase goes into affect in other places the cost to produce our product goes up, we would then have to raise prices to cover that. Granted if it was short term then a company could weather the storm, but this won't be. Also if your company already pays more than minimum wage to set itself apart, then if you raise minimum wage then more than likely that company will want to continue to set itself apart and increase wages.

[halobob]

Hey HM, I believe there will be a domino effect, I logically can't see how it wouldn't be the case. Are you suggesting there doesn't have to be, if so how? This isn't a smart ass question I'm literally curious how it's possible. I've always assumed if you raise the floor then naturally the ceiling will raise. I've also assumed that if you raise operating costs then prices will raise. Now I've only been in leadership in one company so I get a lot of my opinions and values from growing up in that company, but is there another way.

Here's a scenario, let's say my company pays much more than minimum wage already so our labor costs don't have to go up. However because of the wage increase goes into affect in other places the cost to produce our product goes up, we would then have to raise prices to cover that. Granted if it was short term then a company could weather the storm, but this won't be. Also if your company already pays more than minimum wage to set itself apart, then if you raise minimum wage then more than likely that company will want to continue to set itself apart and increase wages.

This exactly, my cousin used to run a tutoring company.  It was easy for him to get college students to work for him for $15 per hour because that is much better than the $9 minimum wage.  With the min wage increase he would have to pay $20 per hour to those employees now to get them hired.