Seattle Minimum Wage raised to 15$/hr over the next few years

[Love Mountain]

http://www.reuters.com/article/2014/...A400RD20140501

Mayor Ed Murray announced a plan on Thursday to raise the minimum wage in Seattle to $15 per hour over three to seven years, making it the first major U.S. city to commit to such a high base level of pay.
The plan is the product of a committee convened by the mayor, including labor and business leaders, that spent 16 weeks negotiating a compromise deal. It must still be approved by Seattle's City Council before it becomes binding on employers.
Under the terms of the plan, small businesses with fewer than 500 workers must raise wages to a minimum of $15 per hour over the next seven years. Those with more than 500 workers must meet that level within three years.
Once the $15 level is reached, further rises will be linked to cost of living increases, said Murray, a Democrat who took office in January with a $15 minimum-wage law as one of his administration's objectives.
Speaking at a news conference, Murray said the plan shows how Seattle "can lead the conversation and the nation to address this growing problem of income inequality."

I guess being considered a hippy state just wasn't hippy enough.

[tarvu]

http://www.reuters.com/article/2014/...A400RD20140501




I guess being considered a hippy state just wasn't hippy enough. [/FONT]

Right because you know anything about the cost of living in Seattle.

[Love Mountain]

Right because you know anything about the cost of living in Seattle.

I live there...

[Condottiere 40K]

Could be an interesting experiment; chances are it will be sabotaged.

[RubiconDecision]

Seattle has a tech boom and low unemployment, at least when removing those who have been unemployed for a long time as a way to bolster the statistics. As such, they might be able to do such a thing over that window of time for either group, but won't that lead to inflated hourly wages and adjustments to salaried workers? Not only that, but while some businesses with large profit margins will have less trouble, others that pay minimum wage have very profit slender margins like groceries. I can see a lot of businesses leaving Seattle to cope with this plus paying for Obamacare. It doesn't make much sense.

The only places that are thriving are the ones in fracking zones where there's a boom analogous to the Alaskan oil boom. There's a lot of inflation in wages to draw more and more needed personnel to those areas, but also an inflation in supplies. One cannot wave a magic wand and then inflate wages like this, and not create other problems.
http://www.governing.com/topics/ener...ing-curse.html
http://www.bizjournals.com/seattle/n...ashington.html

The smaller companies have a lot longer to cope with it. I bet you start to see inflation in things like routine supplies as the companies pass along the much higher wage costs, but then ultimately higher rents and real estate prices. See what happened in North Dakota.

[Col. Tartleton]

Minimum wage in Mississippi is 7.25. Minimum wage in Massachusetts is currently 8.00 but is moving to 11.00 in/over the next three years or something.

15 would be appropriate given the costs in New England are like twice what they are in the Gulf.

[Earl Dibbles Jr]

Minimum wage in Mississippi is 7.25. Minimum wage in Massachusetts is currently 8.00 but is moving to 11.00 in/over the next three years or something..

We can enjoy the consequences; companies firing a large number of their staff to save $, increased prices at resteraunts and stores (except Walmart because they use slave labor in Asia), even more manufacturers leaving, etc.

Raising the minimum wage would have a huge impact on our economy is a negative way. At least Joe Blow who dropped out of High School gets to live better while working at Mickey D's

[Col. Tartleton]

We can enjoy the consequences; companies firing a large number of their staff to save $, increased prices at resteraunts and stores (except Walmart because they use slave labor in Asia), even more manufacturers leaving, etc.

Raising the minimum wage would have a huge impact on our economy is a negative way. At least Joe Blow who dropped out of High School gets to live better while working at Mickey D's

It really doesn't matter.

[Earl Dibbles Jr]

It really doesn't matter.

It matters when prices start going up for the middle class.

[Love Mountain]

It matters when prices start going up for the middle class.

It's minimum wage... It's not the middle class. Moreover, the ones who suffer the most from higher prices are not the middle class. It's the demographic with the lowest purchasing power that struggles the most, i.e. the ones who are on minimum wage. I agree though, this raise is retarded. Corporations can easily eat the cost, they just won't an they'll use the higher minimum wage as an excuse to raise prices. Even before the minimum wage raise actually hits. The article says it'll be in effect in a few years, not immediately.

[Sir Winston Churchill]

We can enjoy the consequences; companies firing a large number of their staff to save $, increased prices at resteraunts and stores (except Walmart because they use slave labor in Asia), even more manufacturers leaving, etc.

Raising the minimum wage would have a huge impact on our economy is a negative way. At least Joe Blow who dropped out of High School gets to live better while working at Mickey D's

Or, alternatively, business leaders could just give themselves smaller bonuses instead of finding a way to make themselves even richer than they already were without having to give their employees something extra.

I mean it's not like their employees need that money to buy the very stuff companies produce to produce a profit.

[Earl Dibbles Jr]

Or, alternatively, business leaders could just give themselves smaller bonuses instead of finding a way to make themselves even richer than they already were without having to give their employees something extra.

It's the United States, no chance in hell that's going to happen short of a Revolution.

I mean it's not like their employees need that money to buy the very stuff companies produce to produce a profit.

How could they possibly get by without their Yachts, Ferraris, Estates, Mansions, and luxury vacations? The horror.

[Sir Winston Churchill]

It's the United States, no chance in hell that's going to happen short of a Revolution.

The very fact it's the United States means we don't need a revolution to change things.

How could they possibly get by without their Yachts, Ferraris, Estates, Mansions, and luxury vacations? The horror.

And those are just the bare necessities!

[Love Mountain]

Itll just give them an excuse to raise the prices sone more. You want a living wage? Strengthen the dollar and lower income taxes.

[Ciabhán]

Hope Seattle doesn't rely on tourism at all. Prices will go up. That big an increase will see prices high enough to keep people from taking holiday there.

[Love Mountain]

Hope Seattle doesn't rely on tourism at all. Prices will go up. That big an increase will see prices high enough to keep people from taking holiday there.

We don't. Seattle was experience really, really good economic growth for the last few years. I wouldn't oppose a wage increase to 11-13$ an hour. I'd welcome it even. Increasing it to 15$ will create a lot of uncertainty in the next few years.

[snuggans]

Hope Seattle doesn't rely on tourism at all. Prices will go up. That big an increase will see prices high enough to keep people from taking holiday there.

there will be an increase in marijuana tourism starting early July.

[Admiral Piett]

Packing my bags and moving there. Haha. Well, I've been considering moving to the Pacific Northwest for a while now and this is only greater incentive.

[YuriVII]

Well let's see how it goes. I am skeptical though. 15 an hour? I made that as a jr. party chief in a land surveying company. Had to lead a team through the wilds of Texas and do a lotta trig calculations out in the seering Texas heat. That earning the same as a burger flipper or a walmart greeter in some air conditioned store is kind of an insult to my profession and other professions like it. I suppose skilled labor wages will increase as well as a result. We will see.

[conon394]

Well let's see how it goes. I am skeptical though. 15 an hour? I made that as a jr. party chief in a land surveying company. Had to lead a team through the wilds of Texas and do a lotta trig calculations out in the seering Texas heat. That earning the same as a burger flipper or a walmart greeter in some air conditioned store is kind of an insult to my profession and other professions like it. I suppose skilled labor wages will increase as well as a result. We will see.

Except of course you likely had benefits and a career path vs just a clock to punch.

Its an interesting move. Risky too lacking any coordinated action from surrounding cities and locals. Lots of Cities have done 'living wage' laws with similar jumps but usually those ably to a more narrow in application but did not really cause economic impact in terms of lost jobs or costs.

But State's minimum wage is already close to $10, and importantly the state does not allow a tip reduction against the minimum wage. So what can really happen? The local gas station or burger joint can't really move. Some fancy chef with a high flying restaurant as already picked one the most expensive cities to set up in so meh. That leaves what tech companies biotech etc. Aside from the fact they are likely tied down by a network of local contracts and 'industrial base' its not always that easy to move. The Biotech I worked for tried it as a way to arm twist the state and city for more aid and it failed - mostly because they could not devise a viable (as in affordable) compensation plan to convince most employees moving was something they wanted to do. At the same time this is where Seattle move is most risky since all that is less of a issue if you are just moving across a county line.

Of course the real problem is how important is the quarterly number, the bonus list and golden parachutes for top executives and ignoring what even jerk like Henry Ford realized back in the day with $5 work day

http://www.theguardian.com/technology/2012/apr/23/bad-apple-employ-more-us-workers