Tuesday, June 21, 2016

Blowback

So much for the claim that California’s raise in the minimum wage would not be accompanied by any negative consequences. The grocery workers union is voting on authorization to strike today and the projection is that the vote will be heavily in favor of the strike.

Grocery stores are trying to “reduce costs in the wake of California's minimum wage increase,”  which seems a bit contradictory until one examines what the contentious issues are. The issues are not wages, but involve fringe benefits and the rate at which wage increases are accrued. Since the beginning wage is increasing, employers want to slow the pace of wage increases and to increase the workers' contribution to the cost of health and pension benefits.

I have no dog in this hunt, but I don’t know why anyone would be surprised by this. Do not be surprised if food prices increase.

1 comment:

bruce said...

Makes me wonder how many of these workers are actually getting minimum wage in the first place. Beginning ones, entry level ones, perhaps. The cashiers and butchers probably not. Health care expenses are rising faster than minimum wage anyway. ACA was supposed to help with that, but oops, guess what? Not so much.

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