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Unions now want exemption from minimum wage hike they pushed.
Posted: May 28, 2015
wage doesn't cost jobs might want to have a chat with unions in Los Angeles. After pushing for a big hike in that city's minimum wage — which will climb to $15 an hour by 2020 — labor leaders now want an exemption for companies that have unionized workers. Why? Because, according to Rusty Hicks, head of the Los Angeles County Federation of Labor, "with a collective bargaining agreement, a business owner and the employees negotiate an agreement that works for them both. The agreement allows each party to prioritize what is important to them." The union exemption would, Hicks said, give "the parties the option, the freedom, to negotiate that agreement. And that is a good thing." Wait just a minute. Isn't this precisely what happens when anyone applies for a job, whether it's through collective bargaining or one-on-one? An employer and a prospective employee negotiate the terms of employment that suit them both, including the mix of wages, benefits and perks. If either side doesn't like the offer, the deal's off. It's called the free market. And it works just as well when it comes to pricing labor as it does cars, homes, food, stocks, vacation packages and countless other things bought and sold every day. What's more, when the government intervenes in this pricing process — by mandating artificially higher or lower prices — it inevitably creates shortages or surpluses. In the case of a higher minimum wage, it does both: It creates a shortage of entry-level jobs and a surplus of unemployed workers. When restaurants and other businesses in Los Angles tried to explain this to the city council and ask for the "freedom to negotiate" wages with their own workers, labor activists shot them down. Apparently, only union bosses can be trusted with the free market.;
Funny, they wanted an exemption from Obamacare too - Do as I say, not as I do.
[ In Reply To ..]It’s a blatant ploy to force unionization by having union shops cost less. The good old Mafia method.
Union workers rarely operate at minimum wage, but their wages - are tired to it, so they want the
[ In Reply To ..]minimum wage raised so they can indirectly compel companies to raise all union wages. But when the union is the one actually shelling out the money, they’ll want exemptions from minimum wage laws so they don’t have to pay more.
OMG, $15 an hour for skilled labor by the year 2020??? Those dirty thieves! - LOL ~ Julia Sugarbaker
[ In Reply To ..]Does anyone realize that's about 30,000 dollars a year and federal poverty level is currently about 27K a year for two people in 2015?
I'm lucky with my MTSO, but most MTs only dream of $15 an hour as we all used to and they should be paid that for skilled labor and MTSOs know it, they just find excuses (usually devaluing their work or them personally) so they can make more profit.
Yeah, fair market is great until employers find a way to get around paying fair price for labor.
Not a fan of unions in some industries, but others, they may become necessary
Not skilled labor. People like McD's, BK, all of them want the $15 - Truthhurts
[ In Reply To ..]so then you have the backwards domino effect...if unskilled labor gets $15, skilled labor will want at least double that.
As an aside, between 2 of us here, we are under the so-called poverty level.
No one, no matter what they do for work, should....sm - Bernie Sanders
[ In Reply To ..]work 40 hours a week and still live in poverty. Let's stop subsidizing large corporations whose workers are paid so little that they depend on SNAP, Medicaid and other government benefits.
You do know, don't you, that "poverty" is relative. - I double-dog gare-on-tee that if
[ In Reply To ..]Everyone working 40 hours made at least $50,000 a year, THAT IS WHERE THE POVERTY LINE WOULD BE. Liberals would see to it, because they are utterly dependent upon the dependency of large masses of citizens to keep what little power they have.
Respectfully ma'am, you are making too many.....sm - Bernie Sanders
[ In Reply To ..]assumptions, the main one being that everyone of employable age will be working 40 hours a week. Many people will work less and some will be unemployed or disabled, so poverty will still exist.
The OP is in LA, where the cost of living is about 4x higher than everywhere else and there's - nothing "so called" about povertyJS
[ In Reply To ..]I think we can all agree, whomever is to blame, inflation is increasing faster than we can keep up and probably is not slowing down any time soon. In fact, some cuts of meat are worth more than one hour of minimum wage work, these days, and there's something wrong with that.
If some want to pretend that the federal government is lying by saying $27K a year for two people is poverty level, especially in LA, then okay, but that's not reality.
Like I was trying to say below (badly I see, which I'm going to edit), standard minimum wage is really the government just providing objective standardization/validation of already-existing fair market value for a job, which has been determined by the supply and demand needs of a particular area, balanced with cost of living.
A job is determined to be skilled labor if there are less people able/available to do that job in that area than others, most likely because more training or education were required to do the job.
So employers crying "fair market" value are full of BS, they already HAVE fair market value with minimum age - the fed. government is just validating/standardizing it formally it so that no one can tip it off balance, employers OR unions - it is what it is, until such time for re-evaluation due to inflation or changes in supply and demand occur
The roots of minimum wage... - Let's work through an example.sm
[ In Reply To ..]Suppose 100 yards of fence could be built using one of two techniques. You could hire three low-skilled workers for $15 each, or you could hire one high-skilled worker for $40. Either way, you get the same 100 yards of fence built. If you sought maximum profits, which production technique would you employ? I’m guessing that you’d hire one high-skilled worker and pay him $40 rather than hire three low-skilled workers for $15 each. Your labor costs would be $40 rather than $45.
Suppose the high-skilled worker came into your office and demanded $55 a day. What would be your response? You’d probably tell him to go play in the traffic and hire the three low-skilled workers. After all, hiring the three low-skilled workers for $45, to get the same 100 yards of fence, would be cheaper than the $55 a day now demanded by the high-skilled worker.
The high-skilled worker is not stupid and knows that’s exactly what you’d do. He will do a bit of organizing first, convincing decent, caring people that low-skilled workers are being exploited and not earning a living wage and that Congress should enact a minimum wage in the fencing industry of at least $20. After Congress enacts a minimum wage of $20, what then happens to the chances of a high-skilled worker’s successfully demanding $55 a day? They go up because he’s used the coercive powers of Congress to price his competition out of the market. Because of the minimum wage, it would cost you $60 to use the three low-skilled workers.
The minimum wage not only discriminates against low-skilled workers but also is one of the most effective tools of racists everywhere. Our nation’s first minimum wage came in the form of the Davis-Bacon Act of 1931.
During the legislative debate over the Davis-Bacon Act, which sets minimum wages on federally financed or assisted construction projects, racist intents were obvious. Rep. John Cochran, D-Mo., supported the bill, saying he had “received numerous complaints in recent months about Southern contractors employing low-paid colored mechanics getting work and bringing the employees from the South.....”
What was left out of the hypothetical: Had fair market determined if the job was skilled or not? - (edited) ~Julia Sugarbaker
[ In Reply To ..]If I read this correctly, I couldn't help but notice that the beginning hypothetical scenario failed to mention if fair market had determined that fence-building is considered a minimum wage or skilled labor job in the first place, and if so, why the employer AND the skilled laborer took it upon themselves to determine the value of fence building.
And therein lies the problem - the value then isn't really being determined by the market itself, it's being determined by the employers themselves instead (and sometimes by overly demanding union leaders rather than the actual employees).
Fair-market value is SUPPOSED to mean value is objectively determined by the market itself through supply and demand, as evidenced by the number of people available to do the job. If there are less people available to do the job - perhaps because the job needs someone with more education and training to do it - then it is considered "skilled."
If fair market deems fence-building isn't considered skilled labor to begin with, and there are many people available to do it, who WOULD hire someone at a skilled rate unless you're certain they're just a better worker?
As for the lies and accusations you're assuming the "skilled fence builder" would make of exploitation of others for not hiring him, that's a little extreme, don't you think? Perhaps that's the bigwigs of unions, but not all employees or even skilled labors act that way, most don't in fact, just the mouths at the heads of unions.
Even if he did, who cares, if it could be proven that was the going rate for that skill in the area was $15 with many people available - ***IF that truly is the fair market value.
Thus, IMO, this scenario then is actually a good example of why we need a minimum wage standard set - because fair market value needs objective standard set every so often when both employers and employees think they get to control fair market.
And if you hire someone in under that standardized fair-market value of minimum wage in any way (or find ways around it), you ARE exploiting your workers.
Some employers are beginning to replace employees with - machines. Remember, unions
[ In Reply To ..]are run for the benefit of union officials and Democrats, not their membership.
Beginning to replace employees with machines?...sm - Alice
[ In Reply To ..]Machines have steadily replaced employees for over 100 years. It is called innovation and progress.
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