Outten & Golden: Empowering Employees in the Workplace

Posts Tagged ‘employment growth’

Seattle's $15 minimum wage raised pay with zero effect on restaurant jobs, new study shows

Thursday, June 22nd, 2017

Raising the minimum wage does not kill jobs, no matter what Republicans tell you—and a new study of the Seattle restaurant industry, where some businesses are already paying a $15 minimum wage, provides another data point showing just that. According to the University of California, Berkeley, study, the increased minimum wage had employment effects that were “not statistically distinguishable from zero,” which is a fancy way of saying “we looked and we could not find a damn thing.” The Seattle Times reports:

Indeed, employment in food service from 2015 to 2016 was not affected, “even among the limited-service restaurants, many of them franchisees, for whom the policy was most binding,” according to the study, led by Berkeley economics professor Michael Reich. […]

It can be hard to separate what impact the wage law had on employment in Seattle versus the effect of the city’s white-hot economy and tight labor market, but “we do our best,” Reich said.

The study compares the wage and employment growth rates in Seattle to a control group of counties, in Washington state and across the U.S., that had similar growth rates as Seattle in the years shortly before the minimum-wage law took effect.

A report issued last year found indications that the increased minimum wage did slightly restrict job growth, but we don’t know if the difference comes from differing methodologies or from the studies covering different time frames. Both studies have to contend with Seattle’s booming economy, which could conceivably mask lowered growth of the job rate for low-wage workers … but which itself refutes the Republican talking points against raising the minimum wage. Because “it’s hard to tell if even more low-wage workers would otherwise be employed because the economy is so darn good” does not exactly back up claims that having the minimum wage be a living wage will destroy the economy.

Working People (and the Facts) Stand Up to Right to Work Push in West Virginia

Tuesday, January 19th, 2016

Kenneth Quinnell

That didn’t take long. As the West Virginia Legislature opened Wednesday, the first bill out of the gates was “right to work” legislation that does nothing more than attack the rights of working people. As the video above shows, workers weren’t happy about the proposal and flooded the Capitol to express their opposition to the dangerous bill.

We’ve already seen what right to work does elsewhere, like Oklahoma, which became a right to work state in 2001. In 2006, Jesse Isbell from Oklahoma City lost his job of 36 years. While in West Virginia to speak out against right to work on Wednesday, Isbell said: “In my case, and in the case of 1,400 brothers and sisters at that facility, the law did not work as advertised. There’s absolutely no anecdotal or empirical evidence that right to work has benefited the Oklahoma state economy in any way. The truth is that it has driven down wages.”

A better approach, Isbell said, is to focus on education and workforce development: “If Oklahoma would have taken this approach 10 years ago instead of the disastrous right to work route, I wouldn’t be talking to you here today. I’d be working at the Bridgestone–Firestone plant in Oklahoma City.”

Proponents of right to work in West Virginia point to a deeply flawed study from West Virginia University but, as the Economic Policy Institute notes, that study gets basic facts wrong, doesn’t follow standard economic models and really only includes one state from which to come to its conclusions. EPI analyst Elise Gould explains:

In a WVU study about the effect of right to work on employment growth, the authors mismeasured both right to work status and employment growth….The point of so-called right to work laws is to hamstring unions, thereby lessening workers’ bargaining power and driving down their wages. This law has the potential to hurt all workers in West Virginia, union and nonunion alike.

EPI makes the case against right to work in West Virginia:

  • Right to work is associated with lower wages and benefits for both union and nonunion workers. In a right to work state, the average worker makes 3.2% less than a similar worker in a non right to work state.
  • Through cutting wages, right to work may undermine West Virginia’s small businesses, which depend on the state’s residents having wages to spend.
  • Many of the arguments made by advocates of right to work ignore that under federal law it is already illegal to force anyone to be a member of a union, and it is already illegal to force workers to pay even one cent to political causes.
  • Companies that are primarily interested in cheap labor are going to China or Mexico, not to right to work states like South Carolina or Arizona.

This blog originally appeared in aflcio.org on January 15, 2016. Reprinted with permission.

Kenneth Quinnell is a long time blogger, campaign staffer, and political activist.  Prior to joining AFL-CIO in 2012, he worked as a labor reporter for the blog Crooks and Liars.  He was the past Communications Director for Darcy Burner and New Media Director for Kendrick Meek.  He has over ten years as a college instructor teaching political science and American history.

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