bbcuk--2019-04-18--Teachers Unions criticise minimum wage internship

Teachers: Unions criticise minimum wage internship

Two teaching unions have strongly criticised a minimum wage internship for teachers run by Stranmillis University College.  The college is currently offering two "graduate internships" at Dundonald Primary School in Belfast.  They are paid at a rate of £7.70 per hour.  The posts are for recently qualified teachers only and involve five days work in the school per week throughout the 2019-20 school year.  The NASUWT said the scheme should be suspended immediately, while the Ulster Teachers Union (UTU) called it "ludicrous".  Stranmillis told BBC News NI that the internships were primarily support roles under the guidance of senior staff, and not teaching posts.  The two jobs in Dundonald Primary School are currently being advertised by Stranmillis for teachers who graduate from the college between July 2018 and July 2019.  One is for a literacy teacher and one is for a numeracy teacher.  They will work full-time alongside school staff to teach small groups of pupils who need help with literacy and numeracy.  According to the job description, the posts are for: "college students who have recently graduated and are preparing to enter the labour market".  "The primary aim of the programme is to provide interns with meaningful experiences which enhance their employability and skills through their involvement in projects which meet the business needs of the college."  The salary for each post is £7.70 per hour, which is the national minimum wage for 21-24 year-olds.  The NASUWT Northern Ireland official, Justin McCamphill, said he was "incredulous" that qualified teachers were being recruited at the minimum wage.  "Teaching should not be a minimum wage job," he said.  "The job description for these posts requires the applicants to be qualified teachers and registered with the General Teaching Council of Northern Ireland.  "It is our view that they need to suspend this programme with immediate effect and properly consider what the long term implications of this will be for the students who are currently in their care.  "This scheme may have been well intentioned, but our fear is that this could be the beginning of the race to the bottom in relation to teachers' wages."  The general secretary of the UTU, Jacquie White, said it "beggared belief" that newly-qualified teachers were being offered the minimum wage.  "With teachers now being expected to take on the ever-expanding responsibilities demanded of teachers today for the contemptuous sum of £7.70 an hour is so ludicrous it doesn't seem possible," she said.  "We have seen other professions where so-called internships have become the byword for cheap labour and we cannot allow this to happen in our sector."  In a statement to BBC News NI, Stranmillis University College said the internship was "primarily a support role".  "The internship role description makes it clear that they are always under the guidance and mentorship of senior staff," the college said.  "The vice principal of the school will supervise the intern and co-ordinate their programme of work, ensuring consistency and fidelity to the agreed objectives of the programme.  "The internship provides an opportunity for those just graduating from a teaching degree to engage in projects under the guidance of an experienced practitioner."  The college also said the interns were not to be used as substitute class teachers as part of their role.


bbcuk--2019-11-12--UK wage growth slows as unemployment falls

UK wage growth slowed down in the three months to September, according to the latest figures from the Office for National Statistics (ONS).  Unemployment dropped by 23,000 to 1.31 million over the same period, while the number of people in work also fell.  Average earnings excluding bonuses increased by 3.6%, compared with 3.8% growth in the previous month.  The figures also showed the biggest annual drop in the number of job vacancies in nearly 10 years.  The ninth consecutive monthly fall in available jobs saw advertised positions fall by 18,000 to 800,000.  There were 32,75 million people in work during the three-month period, a fall of 58,000. It was the biggest drop since May 2015, when the total fell by 65,000.  The ONS said this was down to falling numbers of people working in retail, after the collapse of several store chains and the implementation of shop closure programmes by other firms.  Average weekly pay, in real terms before tax, was £470.  "The employment rate is higher than a year ago, though broadly unchanged in recent months. Vacancies have seen their biggest annual fall since late 2009, but remain high by historical standards," said an ONS spokesperson.  "The number of EU nationals in work was very little changed on the year, with almost all the growth in overseas workers coming from non-EU nationals."  It comes after last week's news that the UK's economy had grown at the slowest annual rate in almost a decade. • Bank split on rates as it warns Brexit deal would hit growth  Samuel Tombs, economist at Pantheon Macroeconomics, said the figures were likely to mean interest rates would stay unchanged for the foreseeable future.  "The pace of weakening in the labour market remains gradual enough for the Monetary Policy Committee to hold back from cutting bank rate over the coming months," he said.  IHS Markit economist Chris Williamson said the falling numbers of working people and job vacancies showed data "was falling into line with earlier warning signs of a weakening labour market from the surveys".  He added: "Recruitment agencies reported that the demand for permanent staff at employers had grown at the joint slowest rate for a decade in October, as uncertainty and worries about the outlook reduced firms' appetite to take on extra employees."  Andrew Wishart, UK economist at Capital Economics, said: "Overall, the figures appear to illustrate that demand for labour is easing, but no sharp downturn, which is a relief following disappointing GDP growth in the third quarter."  Tej Parikh, chief economist at the Institute of Directors, warned that wage growth could continue to slow down.  "The pick-up in wage growth earlier this year has been a plus, but there is clearly a limit to how high pay packets can go. With many firms facing elevated costs and difficulties raising their productivity game, the margins to raise pay are eroding. A further acceleration in wages now looks unlikely," he said.


bbcuk--2019-11-14--Is minimum wage enough to live on?

Is minimum wage enough to live on?

Money is everywhere in the amusement arcades on Southend's seafront: being fed into slot machines, paid out in jackpots, or hanging over the edge of penny fall games.  When running a business like this, the money that really matters is staff wages. Pay is the dominant cost and, with a host of employees on the minimum wage, it is a bill that has been rising.  "There has been quite a dramatic increase [in the minimum wage] in recent years. At peak times, we can absorb the costs but it stretches us even thinner for the rest of the time," says John Remblance, manager at Star Amusements.  "The hard season is getting even harder."  The arcades run by this family firm are open every day except Christmas Day. Further rises in the minimum or National Living Wage promised by all the major political parties could make this a more expensive and therefore more seasonal business, he says.  When the tourists and day-trippers leave, they may need to close their doors.  While those on the lowest pay have seen increases, managers' wages have stayed the same. There is a danger, Mr Remblance says, that a narrowing gap dims ambition. There may not be the incentive in the pay packet to take on extra responsibility and extra work.  At 25, workers of his age see the minimum wage of £7.70 an hour become the National Living Wage of £8.21 an hour. The extra cost has meant a change of policy by the business. When once they would have only employed slightly older workers, with the experience to cope with the anti-social behaviour they encounter, now they take on younger staff too.  One of those is Amber Scraggs, a 21-year-old working in the cashier booth giving change to customers. She works for 46 hours a week on the minimum wage.  It can be a tough job, she says. Not everyone is as friendly as the stray cat that wanders in most evenings, circling the arcade games and roulette machines. The financial rewards also leave her with worries.  "The minimum wage isn't enough to be able to live by myself," she says. She shares the domestic bills with her partner.  "And it is too expensive to live in Southend in the long term. [Housing] developments are for people living here but working in London."  One in five of the town's working population commute into London, so the average salary among Southend residents is £144 higher than it is for those who actually work in the town, according to the Centre for Cities think tank. That is quite a difference for people such as Miss Scraggs.  The think tank, which focuses on the economic performance of UK cities, said that last year, at £413 per week, average pay in Southend was just over half that in London and the lowest of the UK towns and cities it analysed.  Further down the strip, Rebecca Constantinou has been employing young staff at her family-run cafe for the past 23 years. She pays just above the minimum wage, but a higher rate is likely to mean a bigger wage bill.  She is never short of applicants, she says, but with higher pay will come greater responsibility.  "If there is a massive jump [in pay] we are all going to have to be more professional, there will be more competition for jobs, so they will need to work a bit harder," she says.  That is reflected in a report by the Low Pay Commission, which advises governments on minimum wage rates. It says that rising statutory minimum pay must be supported by economic conditions.  Raising the minimum wage too fast in tough economic times could lead to problems, it argues. Greater productivity from workers is needed to support rising pay.  The commission also points out that simply increasing the amount paid per hour to workers does not automatically end low pay. Why? Because they might not work enough hours in the week.  To illustrate its point, it says there are 4.7 million workers aged 21 and over in the UK who are deemed to be low-paid based on their hourly rate, just under 18% of the workforce. However, when looking at total weekly income instead, this figure rises to 7.2 million individuals, or over 27% of the workforce.  A greater proportion of part-time workers than those working full-time are on the National Living Wage (the minimum wage for those aged 25 and over). More women than men are on the statutory minimum. All of this means more attention needs to be paid to the relationship between pay and in-work benefits. • What are the challenges for the UK's economy?  All the major political parties have pledged further rises in minimum wage levels.  For example, Labour has said it wants a £10 hourly rate for workers aged 16 and over to be the statutory minimum. The Conservatives say the National Living Wage should increase to two-thirds of median income - the equivalent of nearly £10.50 an hour - within five years, and be paid to those aged 21 and over.  The SNP has called for the end of the age restrictions for the National Living Wage.  An increasing number of businesses are paying the so-called "real living wage", which is a higher, voluntary threshold and is separate from the statutory minimum.  An independent report, commissioned by then-chancellor Philip Hammond earlier this year but recently published, says there has been little or no evidence of job losses as a result of rising minimum wage levels.  Prof Arindrajit Dube, an academic in the US and an expert on the subject, said there was "room for exploring a more ambitious National Living Wage" in the UK in the coming years.  Plans would make it one of the most generous in the world, but Prof Dube stressed that - owing to relatively little evidence being available - the Low Pay Commission should be able to review the effect on jobs as pay increased.  Back in Southend, while money topples out of one of the arcade machines, manager Mr Remblance stresses that he wants to keep his amusement arcade open all year round.  "It encourages loyalty from staff," he says. However, he knows that how much he pays them will not be entirely in his hands, but will depend - in part - on the UK's short-term political future.


birminghammail--2019-02-12--Should the minimum wage rise to 10 an hour

Should the minimum wage rise to £10 an hour?

Jeremy Corbyn wants to give low paid workers a pay rise by increasing the minimum wage.  Labour has promised to introduce a 'Real Living Wage' of £10 an hour.  However, the policy has been dismissed as a "soundbite" to generate positive headlines.  Labour would give six million low paid workers a wage rise of more than £2,600 per year, the Daily Mirror reports .  Corbyn used a visit to Worcester to attack the government for creating a "perfect storm of low pay, insecurity and working poverty". He said that Labour would put more money in the pockets of workers.  According to analysis by the House of Commons library, Labour's pledge to raise the National Living Wage to £10 an hour in 2020 would give workers a boost of £2,640 to workers on the payment level.  The Labour leader also addressed the number of families who do not have any savings. Research from the party found that adults living in families, where one or more person is working, without any savings has risen to almost 13 million - an increase of 2.5 million since 2010. It increased by more than one million between 2015 and 2017.  Corbyn said: "The rising insecurity, with so many without savings to fall back on, is causing terrible stress for millions of families across the country.  "These scandalous levels of in-work poverty are unacceptable and must be brought to an end."  He added: "Every job should provide dignity and security."  Corbyn promised to introduce a Real Living Wage of £10 an hour, as well as stopping the roll-out of Universal Credit and banning zero-hour contracts.  The Independent's James Moore calls the £10 minimum wage pledge " nothing more than a soundbite ", and argues that the low paid deserve "better policy-making than that".  He argues that Corbyn’s plan to hike the minimum wage ignores many of the issues that come with such a change. While the private sector has adapted well to a higher minimum wage, he says “it’s a different story” with the public sector - exacerbating the impact of austerity on a range of services including the NHS, education, and local government.  Public sector workers are doing “difficult and often demanding jobs for little reward”. While they should be paid properly, central government needs to ensure the money is made available for their employers to be able to pay what they government has mandated.  Moore says that this hasn’t been happening, and neither Labour nor the Tories have paid much attention to this.  He also argues that the focus on rates does not recognise that the minimum wage should “represent a floor”. There should be opportunity for people to move up into something better, but workers are remaining stuck on the minimum wage for too long.  Generally, Moore believes Corbyn is merely paying lip service to voters with his plan. He writes: "Given how suspiciously round Corbyn's number is, a cynic might think it was plucked out of the air because it's a nice round number that will stick in people's minds and maybe generate a much-needed positive headline or two."  While the focus on minimum wage may be problematic, research suggests that increasing it would have many benefits.  Research from Unite found that a £10 minimum wage for workers over the age of 18 would boost public finances by £5.6 billion a year . It would also give workers a pay rise of more than £1,300 a year.  The higher wages would benefit 5.2 million women, especially those who work in the hospitality and retail sectors.  A study by the Smith Institute also found that a rise to the living wage in Britain's main city regions could also help inject more than £1 billion into local economies .  If businesses switched to the Living Wage Foundation's numbers, over half a million workers would receive an annual pay rise of more than £1,700.  UK city regions would benefit from a £560 million boost that could reach £1 billion if the government handed the extra tax generated to city mayors and their combined authorities.  According to the Independent, the Living Wage movement has "put over £800 million back into the pockets of more than 180,000 low paid workers" - £200 million from 2018 alone. Most of this money goes back into the economy.


birminghammail--2019-04-05--MP turns down honour from Birmingham University because theyre not an official living wage employer

MP turns down honour from Birmingham University because they're not an official living wage employer

A Birmingham MP has turned down the offer of a major honour from a Birmingham university - because they don't have official status as a living wage employer.  Liam Byrne, Labour MP for Hodge Hill, was offered the role of Honorary Senior Research Fellow by the University of Birmingham.  It's a title typically offered to people who have made a major contribution to a field of study, but who did it in a profession outside academia.  In a letter to the university, he said he was "absolutely honoured" to be considered but added: "At this stage, however, it is difficult for me to accept".  Mr Byrne said the problem is that the University of Birmingham is not an accredited Living Wage employer.  The living wage is the minimum amount workers need to earn in order to have a reasonable standard of living. The sum is calculated by academics, and at the moment it's £9 an hour.  Every worker directly employed by the University of Birmingham is paid at least this much. But to be formally named a living wage employer, organisations also need to ensure that all their contractors are paying the living wage as a minimum.  Mr Byrne conducted a survey of publicly-funded organisations in Birmingham, including universities, hospitals and schools, and found fewer than one in five have living wage accreditation.  What's more, two thirds of organisation admitted they had no plans to become accredited.  They include the University of Birmingham, as well as Birmingham City University, Aston University and a range of other bodies.  Organisations which are official living wage employers include Birmingham City Council, West Midlands Police and West Midlands Fire Service.  Many MPs say paying the living wage is a serious issue, because it would cut poverty.  If every West Midland worker was paid the living wage it would deliver a pay rise to 571,000 people across the region, one in four working people.  And charities say it would cut reliance on food banks. Since 2015, the number of foodbank visits across the West Midlands has increased by 15% to almost 59,000 a year. But national figures show one in six people referred to foodbanks are in work.  Mr Byrne was offered the post of Honorary Senior Research Fellow at Birmingham University's Jubilee Centre for Character and Values, which investigates the role of character and virtue in public and professional life.  In a letter turning down the offer, he said: "Although the University has agreed to pay directly employed staff the real Living Wage, there appears to be an issue with contractors which is stopping the University becoming a Living Wage employer, accredited by the Living Wage Foundation."  He added: "I submitted freedom of information requests to all public spending in bodies in Birmingham.  "I enclose the replies. As you can see, 70% of public spending bodies are either not accredited, and are without plans to become accredited.  "This is indeed a major problem."  And he said: "Around 27% of workers in our region are paid below the real Living Wage of £9/ hour. That is 571,000 workers.  "Implementation of the real Living Wage is therefore absolutely essential in tackling poverty in the city."  A University of Birmingham spokesman said: "We have committed to and continue to pay at least the voluntary Living Wage for staff directly employed by the University.  "Working at the University of Birmingham staff also benefit from favourable terms and conditions, including generous annual leave allowances, comprehensive development opportunities, a beautiful campus environment and a stimulating and diverse community."  The voluntary living wage which Liam Byrne and other MPs support should not be confused with the “national living wage”, which was introduced by former Chancellor George Osborne in 2015.  The voluntary living wage is independent of the Government and comes to £9-an-hour in most parts of the UK including the Midlands, and £10.55-an-hour in London.  This is the minimum amount people need to live on, according to academics.  It applies to any worker aged 18 or more,  However, employers are under no legal obligation to pay it.  The Government’s national living wage increases the minimum wage by 51p for people aged over 25.  It comes to £8.21 an hour. And it’s compulsory, with employers who pay less to eligible workers liable for legal action.  For workers aged between 18 and 24, the minimum wage is £7,70 an hour.


bonginoreport--2019-12-20--Study Finds Another Obscure Cause of the Gender Wage Gap

Women’s aversion for commuting motivates them to look for closer and not-so-well paid jobs compared to men.  You’ve probably experienced a painful commute at some point in your life. With war stories to share, many of us have an opinion on what the ideal commute time should be. But when we go beyond the anecdotes and examine country-level data, an interesting story emerges, one that could help explain the gender wage gap.  On average, women still earn 20 percent less than men, based on a 2018 International Labour Organization report covering about 80 percent of wage-earning employees worldwide. Education is not the main issue: Women across the world “have just as good – if not better – educational attainments than men”, according to the report. However, we know that women work fewer hours. They also take up different professions, in different sectors and different types of companies. But once these factors are accounted for, women still earn 7 percent less than men for doing the same job, for the same number of hours.  Why is this? Other factors, sometimes harder to quantify, could be at play. Discriminatory employers may offer lower salaries to women. Female candidates may be less likely to negotiate their salary due to the social stigma against women who ask for more (for themselves). There might be yet another reason: From domestic chores to childcare to the logistics involved in running a household and having a social life, unpaid work remains heavily gendered. With such demands on their daily lives, women, in aggregate, value the benefit of a shorter commute and the ability to retain control of their schedule more than men. As such, they may be willing to lower their salary expectations, provided a job fits these criteria.  When people register for unemployment benefits in France, they must fill out Public Employment Service forms. Among other questions, they must specify their reservation wage and maximum acceptable commute. Based on a sample of 300,000 workers, we found that, for comparable job characteristics, unemployed women search for jobs closer to home and are willing to accept lower salaries. Unsurprisingly, this is exactly what they get in their next job. We described our findings in a recent paper, “Gender Differences in Job Search: Trading off Commute Against Wage”.  On average, men are willing to accept a 14 percent longer commute than women. The difference between both genders is most pronounced (23.7 percent) for those who are married with children, but remains significant (7.7 percent) in the case of single individuals without children. We found similar patterns in publicly available data from the United States where the average desired commute is 47 minutes for men and 35 minutes for women.  In terms of reservation wages, women’s expectations are 3.6 percent lower than that of men. The highest gender gap in this regard is seen in married mothers (5.6 percent). However, even in the case of single individuals without children, women have a reservation wage 2.1 percent lower than men.  Our model shows that around 10 percent of the gender wage gap is due to gender differences in the willingness to trade-off salary for a shorter commute. Women receive roughly the same number of job offers from distant employers as men do. But our study shows that women strongly value a short commute and therefore must be compensated more than men to accept far-away jobs. As a result, they are more likely to work close to home in jobs that pay relatively less.  Our dataset doesn’t reveal the reasons why women prefer shorter commutes. But, based on conjecture, looking after children is undoubtedly an important factor. As the primary caregivers, women shoulder most household responsibilities, which often includes ferrying the kids to school or day care. They may also be the first parent to be called when the child gets sick and needs to be taken home. Even if the woman doesn’t have kids, she may anticipate the day she becomes a mother and choose a job accordingly.  Consider also what happens when a couple owns only one car. Is the man more likely to use it, especially if his workplace is the farthest one from home? In the absence of a private means of transportation, women may not feel as safe on buses or trains, especially late at night. In such a case, it would also make sense for them to look for a job with the shortest possible commute.  What can be done?  Employers who are serious about helping to bridge the gender wage gap should consider offering flexible working arrangements, in particular remote work. Technology may hold a key to reducing the gender wage gap as it would allow more women to widen their opportunity net, beyond geographical or logistical constraints. Employers stand to gain too, as it would expand their talent pool.  Urban planning could play a part, too. We often think that only direct solutions will fix the gender wage gap. But indirect approaches could yield significant results. This could mean ensuring that public transportation remains as reliable (and strike-free!) as possible. Urban planning authorities could also encourage mixed-use developments to multiply the neighbourhoods offering an array of residential, commercial, office and community spaces all within a short radius.  Of course, the more housework can be shared equally between domestic partners, the more the gender wage gap could be reduced, as it might increase women’s willingness to consider a longer commute for a higher salary.  Alexandra Roulet is an Assistant Professor of Economics at INSEAD.  Thomas Le Barbanchon is an Associate Professor of Economics at Bocconi University.  Roland Rathelot is an Associate Professor of Economics at the University of Warwick.


breitbart--2019-03-30--WatchKris Kobach Wage Hikes via Less Immigration a Massive Win for Trump Working-Class American

Watch—Kris Kobach: Wage Hikes via Less Immigration a ‘Massive’ Win for Trump, Working-Class Americans

During a debate for IntelligenceSquared, Kobach touted Trump’s “Hire American” economy, which has delivered increased blue-collar and working-class wages by between 3.4 percent and four percent in the last 12 months.  “By reducing illegal immigration, you drive up wages, especially in unskilled labor categories,” Kobach said. “Therefore, [blue-collar workers] have seen those wage gains, and [Trump] has delivered.”  In terms of wages, in the last 12 months, we’ve seen a 3.4 percent increase in nominal wages. That’s extraordinary, the largest wage gains in the last 12 years. It is a massive achievement for the working, blue-collar voter, and that’s why blue-collar voters in exit polls voted 66 percent for Donald Trump in the last election. He’s the only one that can pull it off again. [Emphasis added] [The wage gains are] a direct result of his positions and his policies on his signature campaign issue, which of course is immigration. President Trump has done what no other presidential candidate has done in recent years, made that a centerpiece issue and has governed with that as a centerpiece issue. He has recognized that illegal immigration really does affect all of us. Every state is a border state now. [Emphasis added]  Those wage hikes for America’s working and lower middle class and a populist-nationalist agenda are what must continue for Trump to capture states like Pennsylvania, Wisconsin, and Michigan — as he did in 2016 — in the upcoming 2020 presidential election.  “I don’t know if any Republican can do what Trump did in those blue-collar states [of Pennsylvania, Michigan, and Wisconsin] and break through the Rust Belt,” Kobach said. “The party, after Trump, we may be toast if we don’t find somebody who has his special sauce who can connect with voters in those three states.”  Wage hikes for blue-collar and working-class Americans, though, are increasingly threatened by the record levels of illegal immigration coming across the U.S.-Mexico border, as well as the Department of Homeland Security’s (DHS) mass release of border crossers and illegal aliens into the interior of the country in recent months.  Unfettered illegal immigration — along with the country’s mass legal immigration policy, where more than 1.2 million mostly unskilled foreign nationals are added to the population every year to compete against Americans for jobs — has kept Americans’ wages stagnant and low for decades.  Every one percent increase in the immigrant composition of American workers’ occupations reduces their weekly wages by about 0.5 percent, researcher Steven Camarotta has found. This means the average native-born American worker today has his weekly wages reduced by perhaps 8.5 percent because of current legal immigration levels — not factoring in the wage depression caused by illegal immigration.  In a state like Florida, where immigrants make up about 25.4 percent of the labor force, American workers have their weekly wages reduced by perhaps more than 12.5 percent. In California, where immigrants make up 34 percent of the labor force, American workers’ weekly wages are reduced by potentially 17 percent.  Likewise, every one percent increase in the immigrant composition of low-skilled U.S. occupations reduces wages by about 0.8 percent. Should 15 percent of low-skilled jobs be held by foreign-born workers, it would reduce the wages of native-born American workers by perhaps 12 percent.  In 2017, foreign-born residents made up more than 17 percent of the total U.S. workforce, comprising about 27.4 million foreign workers who compete against American workers for jobs. In occupations that have been relieved by stricter immigration enforcement, like dairy farming, U.S. wages have risen and so have working conditions as employers seek to attract talent in a tight labor market.  John Binder is a reporter for Breitbart News. Follow him on Twitter at @JxhnBinder.


breitbart--2019-09-02--Job-Hopping Young Workers Getting Huge Wage Gains Says Business Center

Job-Hopping Young Workers Getting Huge Wage Gains, Says Business Center

The good news was touted by the White House, with a headline reading, “Younger Workers Report Biggest Gains in Happiness With Pay,” and a Labor Day tweet from President Donald Trump.  Young people are more likely to get pay raises because they are more willing to switch employers in President Donald Trump’s go-go economy, according to Gad Levanon, the chief economist at the board.  “Young workers are more likely to be new hires,” Levanon told the Wall Street Journal. “When you hire someone new, you have to go to the market and those wages are much more sensitive to labor-market conditions.”  American workers under 35 report being happier with their paychecks than people over 55 for the first time since at least 2011, according to a new report from the Conference Board, a business-research organization that polls U.S. employees about workplace satisfaction. Overall, the share of workers satisfied with their paychecks rose to 46.4% in 2018, from 43% in 2017, an increase that mirrors federal data showing that wage growth accelerated in 2018. The biggest leap came from millennials and Generation Z, whose enthusiasm for their compensation shot from 36% in 2017 to nearly 46% a year later. Overall, median weekly earnings rose 5% from the fourth quarter of 2017 to the same quarter in 2018, according to the Bureau of Labor Statistics. For workers between the ages of 25 and 34, that increase was 7.6%.  The trend has continued throughout 2019, suggesting that younger workers will walk into the 2020 voting booths carrying much fatter wallets.  But Trump’s economy has a long way to go before it can reach prior levels of optimism, the Wall Street Journal said:  Nearly 54% of U.S. workers said they were satisfied with their jobs in 2018, the highest share reported in more than two decades. Despite the mostly good news for workers and their employers, the 2018 data look less rosy in historical context. In 1987, the first year of the survey, job satisfaction hovered above 61%. Since then, the quality of Americans’ work lives has been eroded by a fraying sense of loyalty between employees and employers, the decline of workers’ bargaining power through unions, and the rise of outsourcing, among other factors, Mr. Levanon said.  In part, wages are being driven up because Trump’s “Hire American” promise is preventing investors from importing all of the cheap labor they want. Also, Trump’s growing economy is forcing investors and CEOs to compete for American workers and to invest in labor-boosting machines, such as robots.  Each year, roughly four million young Americans join the workforce after graduating from high school or university. This total includes about 800,000 Americans who graduate with skilled degrees in business or health care, engineering or science, software, or statistics.  But the federal government then imports about 1.1 million legal immigrants and refreshes a resident population of about 1.5 million white-collar visa workers — including approximately 1 million H-1B workers and spouses — and about 500,000 blue-collar visa workers.  The government also prints out more than 1 million work permits for foreigners, it tolerates about 8 million illegal workers, and it does not punish companies for employing the hundreds of thousands of illegal migrants who sneak across the border or overstay their legal visas each year.  This policy of inflating the labor supply boosts economic growth for investors because it transfers wages to investors and ensures that employers do not have to compete for American workers by offering higher wages and better working conditions.  This policy of flooding the market with cheap, foreign, white-collar graduates and blue-collar labor also shifts enormous wealth from young employees towards older investors, even as it also widens wealth gaps, reduces high-tech investment,  increases state and local tax burdens, and hurts children’s schools and college educations.  The cheap-labor economic strategy also pushes Americans away from high-tech careers and sidelines millions of marginalized Americans, including many who are now struggling with fentanyl addictions.  The labor policy also moves business investment and wealth from the Heartland to the coastal cities, explodes rents and housing costs, undermines suburbia, shrivels real estate values in the Midwest, and rewards investors for creating low-tech, labor-intensive workplaces.


breitbart--2019-09-06--The US Economy Created 130000 Jobs in August Wage Growth Accelerated Unemployment 37

The U.S. Economy Created 130,000 Jobs in August, Wage Growth Accelerated, Unemployment 3.7%

Economists had expected the economy to between 150,000 and 180,000 with the median consensus at 163,000, according to Econoday. Unemployment was expected to remain unchanged. Last month’s jobs figure was originally reported at 164,000, now revised down to 159,000, and unemployment was 3.7 percent.  Although the headline number was weaker than expected, wage growth was strong in August. Average hourly earnings for all employees on private nonfarm payrolls rose by 11 cents to $28.11, or 0.4 percent, following 9-cent gains in both June and July. Over the past 12 months, average hourly earnings have increased by 3.2 percent. In August, average hourly earnings of private-sector production and nonsupervisory employees rose by 11 cents to $23.59.  Unemployment among African Americans fell to 5.5 percent, the lowest level on record.  The labor force participation rate edged up to 63.2 percent in August, indicating that the strong labor market has continued to draw Americans into the workforce.  The largest job gains came from professional and business services, which added 37,000.  Census hiring boosted the federal government’s hiring to 28,000 workers. Health care added 24,000 to the total while financial services increased by 15,000.  There were little to no gains in August for construction, manufacturing, transportation and warehousing, and leisure and hospitality. Holding the line on manufacturing jobs is a sign of strength given signs that manufacturing activity fell this summer.  The retail sector shed 11,ooo jobs, with department stores losing 15,000 jobs (partially offset by gains in other retail venues). Over the year, so-called “general merchandise” retails jobs have fallen by 80,000.  While the economy continued to grow in the second and third quarter, it has slowed from the rapid 3.1 percent rate of growth in the first three months of the year. Manufacturing appears to have contracted and business investment has been weak, with surveys indicating that uncertainty around trade policy and global economic weakness have become a drag on the U.S.  Consumer spending and the labor market have been strong. Data released Thursday showed worker compensation rising strongly and well-above inflation. Rising labor costs can promote capital investment by businesses seeking to make workers more productive.   With unemployment near 50-year lows, job growth has slowed and many businesses say they are having trouble hiring. Employment growth has averaged 158,000 per month thus far this year, compared with an average monthly gain of 223,000 in 2018.


pbs--2019-02-19--Illinois governor signs measure hiking minimum wage to 15 by 2025

Illinois governor signs measure hiking minimum wage to $15 by 2025

SPRINGFIELD, Ill. — Illinois Gov. J.B. Pritzker has signed a measure gradually hiking the state’s minimum wage to $15 an hour by 2025, the highest in the Midwest.  It was one of the new Democratic governor’s top campaign promises. He signed the six-year plan Tuesday at the Governor’s Mansion.  Illinois is on track to be the first state in the Midwest to push its base wage to $15. It increases from $8.25 by $1 on Jan. 1, and jumps to $10 on July 1, 2020. Then, it increases $1 each Jan. 1 until 2025.  Business groups opposed the plan. They wanted a longer phase-in and a regionalized approach with lower minimum wage levels for areas outside Chicago.  Pritzker noted there are payroll tax credits in the law to ease the transition for employers.


politico--2019-05-15--Moderate Dems look to break logjam on minimum wage boost

A band of Democratic moderates in the House is working to end a standoff with progressives on legislation to boost the minimum wage — potentially resolving a fight that has stalled one of the party’s top priorities.  Rep. Tom O’Halleran (D-Ariz.) is leading an effort to make tweaks that could help deliver at least a half-dozen moderates onto the $15-an-hour wage bill without losing many on the left.  The initial struggle on the measure, a core part of the Democratic agenda, underscores the ideological divisions that have tested the new majority.  The moderates’ plan would still offer a path to doubling the federal minimum wage to $15 an hour over five years, but would come with an insurance option of sorts, according to multiple aides: a requirement that the Government Accountability Office conduct a study on the policy’s economic impacts after roughly two years.  The House Education and Labor Committee would then have a chance to recommend what action — if any — House leadership should take. The amendment, which is still being drafted, has not yet been publicly released.  The proposal could pose a problem for some liberal lawmakers, who are refusing to do anything that they see as watering down the party’s promise to reach a federal $15-an-hour minimum wage.  “In Washington, when you don't want to do something, you say, let’s study it,” Rep. Ro Khanna (D-Calif.) said of the moderates’ plan.  Other progressives, however, have said they could be open to the tweak as long as it doesn’t slow down the five-year rollout of the bill.      House Majority Leader Steny Hoyer (D-Md.) told reporters Wednesday that some changes are being considered, which he said would make sure the bill is "fair," but did not elaborate on details.  Democrats like O'Halleran, who is co-chair of the centrist Blue Dog Coalition, hope the amendment wins over moderates who are otherwise anxious about voting for a policy that Republicans are likely to accuse of being a job-killer — even though the GOP-controlled Senate is sure to ignore the legislation if it’s passed by the House.  Centrists are pitching their plan as a compromise to Rep. Bobby Scott, the chairman of the House Education and Labor Committee, who is looking to bring the bill to the floor sometime this summer.  Scott has not weighed in on O’Halleran’s proposal but suggested he could convince skeptics on his own.  “I think we’ll get to 218 as we are. We’re obviously open to negotiation,” Scott said in an interview last week when asked about O’Halleran’s proposal.  So far, Scott and his allies have rounded up 205 cosponsors for the minimum wage bill, which they see as a crucial promise that helped deliver Democrats the majority. Still, they’re more than a dozen votes shy of bringing the bill to the floor, according to multiple lawmakers and aides.  Meanwhile, progressives are growing restless to pass the first minimum wage hike in a decade.  O'Halleran and Scott have also worked closely with another key moderate who is already in favor of the $15-an-hour proposal — another Blue Dog Co-Chair Stephanie Murphy (D-Fla.) — to shore up the 218 votes needed on the floor.  Murphy’s district in Central Florida has a high cost of living, and its largest employer, Walt Disney World Resorts, has already made plans to gradually hike worker pay to $15 per hour.  Many of the Democrats who have so far refused to sign onto the bill come from red states, like Oklahoma and Texas, which use the federal minimum wage of $7.25 an hour and are reluctant to endorse a bill that local businesses in their districts might see as a death sentence.  Progressives, meanwhile, have pointed to success stories in places like Seattle, where families have been pulled out of poverty with a minimum wage increase that is gradually rising to $15 per hour  “The concerns I have right now are: OK, the minimum wage in San Francisco means nothing, nobody’s getting paid $15 an hour. [But] $15 an hour in Arkansas or Arizona, or other states, is a whole different story. So, how are we breaking that down?” said Rep. Jeff Van Drew (D-N.J.), who has yet to co-sponsor the minimum wage bill but said he's interested in O'Halleran's plan.  “I do want to see people make a decent wage," Van Drew said.  Many of the Democratic hold-outs, like Reps. Lucy McBath of Georgia and Dean Phillips of Minnesota, have been insisting on a more cautious approach to raising the minimum wage. They prefer a competing plan that would establish a “regional” minimum wage, which was introduced by Rep. Terri Sewell of Alabama last month and has a dozen cosponsors.       Some moderate Democrats, like Reps. Abigail Spanberger of Virginia and Chrissy Houlihan of Pennsylvania, have cosponsored both Scott's and Sewell's proposals.  But Scott also faces fierce pressure from the left, with the leaders of the Congressional Progressive Caucus — with its 96 members — unwilling to accept changes that would be seen as weakening the $15-an-hour proposal.  "The reality is, the federal minimum wage would be over $21 if it was indexed for inflation," Rep. Pramila Jayapal, co-chair of the CPC, said in an interview. "When you say [$15] is too much, too much for whom?"


rawstory--2019-04-01--US Labor Department moves to ease companies liability for franchisee wage violations

US Labor Department moves to ease companies’ liability for franchisee wage violations

The U.S. Department of Labor on Monday issued a proposal that would make it more difficult to prove companies are liable for the wage law violations of their contractors or franchisees, a top priority for business groups.  If adopted, the rule would likely help fast-food companies and other franchisors who have been sued by workers in recent years for wage-law violations by franchisees.  The department in 2017 had already repudiated legal guidance issued by the Obama administration that had expanded the circumstances in which a company could be considered a so-called joint employer under the federal Fair Labor Standards Act (FLSA).  Labor Secretary Alexander Acosta in a statement said Monday’s proposal would reduce litigation under the FLSA and provide clarity to businesses and courts. The FLSA mandates that workers be paid the minimum wage and overtime, among other requirements.  Publication of the rule kicked off a 60-day public comment period.  Under the proposal, companies would be considered joint employers only if they hire, fire, and supervise employees, set their pay, and maintain employment records. That would likely exclude many franchisors and companies that hire contract labor.  The Obama administration’s guidance included several other factors, such as the nature of the work being performed and whether workers were integral to a company’s business. That definition of joint employment had rankled the business community, which said it threatened the franchise business model and would lead to a spike in lawsuits.  Matt Haller, vice president at the International Franchise Association, a trade group, said the Obama-era rule had led to frivolous lawsuits and changed the way franchisors interacted with franchisees.  “Through this proposal, the Department of Labor has the chance to undo one of the most harmful economic regulations from the past administration,” he said.  The Obama-era regulation was not legally binding, but Monday’s proposal would be if it is adopted. That would make it more difficult for future administrations to undo, but also open it up to legal challenges.  The proposal comes as the National Labor Relations Board is moving to roll back a separate Obama-era standard for determining joint employment under federal labor law, which governs union organizing and workers’ rights to advocate for better working conditions. Under a rule the NLRB proposed in September, companies would have to possess direct control over working conditions to be considered the joint employer of franchise or contract workers.  Reporting by Daniel Wiessner in Albany, New York, Editing by Alexia Garamfalvi and Matthew Lewis


rferl--2019-12-30--Putin Raises Minimum Wage Ahead Of New Year’s Address

Ahead of his New Year’s address to the nation, Russian President Vladimir Putin signed a variety of laws that included raising the minimum monthly wage starting next year by 7.5 percent, or to $195.  The law on minimum wage stipulates that the amount should not only equal the cost of living for the second quarter of the previous year but also may exceed this value.      According to the statistics agency of the European Union, the lowest monthly minimum wage as of July among EU countries was in Bulgaria, where it stands at 286 euros ($320).  The highest minimum wage in the EU is in Luxembourg – 2,071 euros ($2,320).      Putin also signed a law that allows smoking again in certain designated rooms of airports.


shareblue--2019-07-19--This week in wins House passes minimum wage hike for 27 million workers

This week in wins: House passes minimum wage hike for 27 million workers

Four brave congresswomen endured unsettling racist attacks all week, which dominated headlines across the country.  Despite those headlines, there are still lots of stories — big and small — that are worth celebrating.  Here is some good news for the week.  The House of Representatives voted on Thursday to give millions of workers a raise, passing a $15 minimum wage bill. Three Republicans joined the overwhelming majority of Democrats to pass the Raise the Wage Act by a 231-199 margin.  "A pay raise for American workers is long overdue, and it's time we raise wages for the people, as Democrats promised," House Majority Leader Steny Hoyer said before the vote. "Today we're keeping that promise."  The legislation implements yearly increases in the minimum wage, culminating in a $15 per hour wage in 2025. It is the second major bill passed by the House addressing wage issues.  In March, the House passed the Paycheck Fairness Act, legislation that would help close the gender wage gap. The fate of both bills now rests with Senate Majority Leader Mitch McConnell, who has consistently vowed to block all progressive legislation.  With the new law, "Oregon is helping lead the nation on how to transition to a cleaner, modern transportation system," Brown said in a statement.  The law will help Oregon move toward a goal "that 90 percent of all new vehicles sold in Oregon and 50 percent of all registered vehicles in Oregon would be ZEVs [zero-emission vehicles] by 2035."  In addition to buying peanuts and cracker jacks, baseball fans can now register to vote at Baltimore Orioles home games. During Friday night home games starting last week, fans can register to vote at several locations throughout the stadium, the Baltimore Sun reported.  The registration drives are "to encourage fans to be an active part of our democracy," Greg Bader, the team's spokesperson, told the Sun.  In addition to voter registration drives, the Orioles have an exhibit that celebrates the 19th Amendment, which gave some women the right to vote. (All women did not get the right to vote until civil rights legislation passed decades later.) The exhibit is located behind home plate.  The Trump administration's attempt to allow employers with religious or moral objections to obtain exceptions to the Affordable Care Act's birth control provision was handed another defeat, Reuters reported.  On July 12, a federal appeals court in Philadelphia upheld a nationwide injunction preventing the rule from taking effect, agreeing with Democratic attorneys general who said the rule has "serious substantive problems."  The ruling will protect "women's access to contraceptive care throughout the US," Josh Shapiro, Pennsylvania's attorney general, wrote on Twitter after the ruling was handed down.  New York Gov. Andrew Cuomo signed a new law that "sets the nation's most aggressive targets for reducing carbon emissions," Al Jazeera reported Thursday.  The Climate Leadership and Community Protection Act mandates that the state slash greenhouse gas emissions to 85% below 1990 levels by the year 2050. By that year, all the state's electricity will come from carbon-free sources.  "This is the most ambitious, the most well-crafted legislation in the country," Vice President Al Gore said. Gore joined Cuomo for the bill-signing ceremony.  The law will require significant investment by the state, which may be difficult, "but not as difficult as coping with the effects of severe climate change if action is not taken," Michael Gerrard, director of the Sabin Center for Climate Change Law at Columbia University, told Al Jazeera.  A new New Hampshire law requires all middle and high schools to keep their bathrooms stocked with free feminine hygiene products, a local CBS affiliate reported Wednesday.  "This legislation is about equality and dignity," Gov. Chris Sununu (R) wrote on Twitter after he signed it into law. The new law "will help ensure young women in New Hampshire public schools will have the freedom to learn without disruption — and free of shame, or fear of stigma."  The menstruation products will be available in all women's and gender-neutral bathrooms throughout the state.  "Being an adolescent middle or high-schooler is hard enough without the fear and embarrassment of lacking proper care products during the school-day because you cannot afford them," Democratic Rep. Polly Campion, one of the bill's co-sponsors, said in a statement.  Come back next week for more good news.


sottnet--2019-04-01--New York Citys minimum wage law is killing a once-thriving restaurant scene

New York City's minimum wage law is killing a once-thriving restaurant scene

A once-growing industry is contracting, according to an online survey conducted by the New York City Hospitality Alliance, an association representing restaurants in the city.Last year, "full-service restaurants recorded a 1.6 percent job loss, which is the first recorded annual loss in two decades," said Andrew Rigie, executive director of the trade group.The survey also said about a third of respondents will eliminate jobs and most will raise prices this year because of the new $15-an-hour law backed by Gov. Cuomo and other state officials, which took effect on Dec. 31, 2018.Also, 75 percent of limited service restaurant respondents reported that they will reduce employee hours, and 53 percent will eliminate jobs in 2019 as a result of the wage increases, according to the survey.The governor, through a spokeswoman, defended state policies: "All New Yorkers deserve to make a living wage and under the governor's leadership, more minimum-wage workers than ever before have received an increase in their wages. The fact is that increasing the minimum wage puts more money in the pockets of hardworking New Yorkers, which creates more demand for local businesses and increases economic activity."A spokeswoman for Mayor de Blasio didn't respond with a comment.The Hospitality Alliance said,


sottnet--2019-05-08--Mandatory minimum wage backfire Wage hikes have slowed job growth in California

Mandatory minimum wage backfire: Wage hikes have slowed job growth in California

According to a recent study conducted by the University of California Riverside,among restaurant workers.The golden state instituted a series of minimum wage hikes - set to reach $15 by 2022, or 50% over 2012 levels, according to Forbes "Data analysis suggests that while the restaurant industry in California has grown significantly as the minimum wage has increased,," according to the study. "The slower employment is nevertheless real for those workers who may have found a career in the industry."Some of the findings:"The minimum wage increases could have major ramifications for California restaurants and more broadly, the state's economy," says Phil Kafarakis - President of the Specialty Food Association and former Chief Innovation & Member Advancement Officer at the National Restaurant Association."There are some 1.83 million restaurant jobs in the state (National Restaurant Association) that represent about 11% of California's employment base. Given that labor is one of the restaurant industry's biggest costs, there's a real danger that the higher minimum wage will stifle job growth, currently projected at 9% through 2020 and adding 164,000 new jobs."Moreover, according to Forbes, Kafarakis seescompared to the same dollar spent in limited-service outlets, that contribute $1.75 to state revenue per dollar spent."What is the solution? According to Chafin -"Battling these headwinds requires QSRs to adopt a long-term view to reduce labor reliance through technology. Kiosk ordering, kitchen automation, central prep, smarter scheduling, and automated delivery are in various phases of the R&D cycle and expected to ease labor risks in the years ahead."As the report's authors conclude, ". Minimum wages, and there should be a specific exemption for tipped employees. In both cases it can reduce the impact of the higher minimum wage on the local industry and still achieve higher incomes in the broader economy."


tass--2019-12-28--Putin signs law on minimum wage hike to $195 starting 2020

MOSCOW, December 28. /TASS/. Russian President Vladimir Putin has signed the law setting the minimum rate of labor payment in Russia at 12,130 rubles ($195.5) starting January 1, 2020. The document was published on the official website of legal information on Saturday.  Currently the minimum wage amount is 11,280 rubles ($181.8).


thebeaverton--2019-05-29--Alberta government lowers minimum wage for minors as part of new Tiny Hands Tiny Rights initiativ

Alberta government lowers minimum wage for minors as part of new ‘Tiny Hands, Tiny Rights’ initiative

EDMONTON – Fulfilling their campaign pledge to strip away the rights of children, on Monday the UCP controlled legislature of Alberta passed a bill lowering the minimum wage for workers under the age of 18.  “We were elected on a mandate to shrink children’s rights. We promised to take away their adult wages, their right to not have teachers out them to their parents, and their right to a life not spent fighting in future wars for dwindling resources in an environment destroyed by carbon pulled out of the ground right here in Alberta. Well, the UCP keeps its promises,” Premier Jason Kenney said.  While labor advocates have pointed out that paying the same wage for the same work is a cornerstone of workplace equality, the UCP argues that if children really wanted the same rights as adults they should be born as old people like Benjamin Button.  “Make no mistake, this isn’t just about denying children rights solely on the basis of their age and relative smallness,” Kenney added. “It’s also about a child unemployment rate that has risen steadily for over a century. We believe gradually lowering the minimum wage for minors to a crust of bread and a tuppence a day is the only way to achieve our goal of a Victorian-era level of child labour.”  The UCP is waiting to see how the public responds to the lower wages for minors before implementing phase 2 of the ‘Tiny Hands, Tiny Rights’ initiative, which would involve officially reclassifying everyone under the age of 18 as either a pet or an all-terrain vehicle.


theconservativetreehouse--2019-03-13--Labor Reports Annual Inflation Rate 15 Annual Rate of Wage Growth 35

Labor Reports: Annual Inflation Rate 1.5%, Annual Rate of Wage Growth 3.5%…

The Bureau of Labor Statistics (BLS) released some important data today surrounding the state of the U.S. economy. The first release shows the current CPI (consumer price index) or rate of inflation:  As noted above, energy prices are 5.0% lower year-over-year; this is a significant reason for the current low inflationary rate.  Also energy prices (fuel, gas, oil) disproportionately impact the middle-class as an unavoidable cost.  Lower gas prices (currently down 9.1%) help middle-America, and also have a downstream impact of lowering product transportation costs.  An overall annual rate of inflation at 1.5 percent is exactly on target.  CTH has been predicting this energy-based outcome for more than three years:  The third highest variable cost of goods beyond raw materials first, labor second, is energy. If the U.S. energy sector is unleashed -and fully developed- the manufacturing price of any given product will allow for global trade competition even with higher U.S. wage prices. (link)  The second BLS release was a review of Real Earnings and Wages.  Here the news is terrific and the results on target:  Annual wage growth 3.5%  Keep in mind the wages and prices are national averages.  There are regions and specific sectors of the workforce where the rate of wage growth is much higher. The average rate of wage growth is 3.5 percent; and wages are on an upward trend-line.  With an ever tightening labor market we can expect to see continued upward pressure on wages.  Wage growth of 3.5% with inflation at 1.5% means higher actual income, more money in the pockets of workers, and increased purchasing or saving power.  Lastly, CTH would be remiss if we did not point out we are deep into year #2 of the steel, aluminum and China tariffs.  The multinational doomsayers and financial pundits were predicting massive surges in U.S. consumer prices for the downstream products.


theconservativetreehouse--2019-04-05--March Jobs Report 196000 Jobs Gained Unemployment Rate Remains 38 Wage Growth 32

March Jobs Report – 196,000 Jobs Gained, Unemployment Rate Remains 3.8%, Wage Growth 3.2%….

The Bureau of Labor Statistics (BLS) released the March employment report earlier today showing strong job growth of 196,000 with the unemployment rate remaining 3.8%.  Also, in March, average hourly earnings for all employees on private nonfarm payrolls rose by 4 cents to $27.70, following a 10-cent gain in February. Over the past 12 months, average hourly earnings have increased by 3.2 percent.  The employment result was stronger than most analysts predicted; and comes amid stronger home sales and higher manufacturing numbers.  The economy is strong, balanced and shows no signs of weakness.  January and February were also revised upward by 14k.  The strong March (+196k) makes the weak February report (+33k) look like an outlier.  Using January (+312k), the three-month average is now 180,000 jobs gained.  The March employment report has become the latest in a series of better data this week, including stronger home sales and a pickup in ISM manufacturing activity. Recession fears have been fading as economists have been nudging up their expectations for GDP growth, with some seeing over 2% in the first quarter from earlier forecasts closer to 1% or lower. “The demise of the U.S. economy has been greatly exaggerated,” said Ward McCarthy, chief financial economist at Jefferies. McCarthy said this year’s first quarter is following the pattern of typically weaker growth at the start of the year followed by a rebound. (read more)  Wage growth is 3.2% nationally.  There are multiple regions -and multiple job sectors- where wage gains are much higher. With inflation hovering around 1.0 to 1.5 percent, real disposable income is higher for all workers.  This is helping to fuel the retail sales sector gains; people are buying more stuff.


theconservativetreehouse--2019-10-05--Wage Growth for Low Income Workers Doubles Wage Growth for High Income Workers

Wage Growth for Low Income Workers Doubles Wage Growth for High Income Workers…

An interesting article within The Atlantic draws attention to one of the more intended consequences of Maganomics: wages for the middle-class Americans are rising twice as fast as wages for high-income earners.  Yes, President Trump is closing the wealth gap.  This dynamic is directly attached to President Trump’s MAGAnomic policy that focuses wage and income benefit directly to Main Street, “production economy”; and reverses the process that was driving benefit to U.S. multinationals on Wall Street, the “service-driven” economy.   As noted in The Atlantic:  While there are not technically going to be direct losers in a Main Street economy, there will undoubtedly be some amid the investment class who will be lesser-winners.  The reasoning is really quite simple.  There are many people attached to the Wall Street economy who ran-up wealth via the process of de-industrialization of America.  Anyone who gained income through the process of multinational export of investment and jobs, specifically U.S. based multinationals, are naturally going to see negative impact as the reverse takes place.  Multinational investment assets held overseas are precariously positioned, as the Trump’s ‘America-First’ trade policy starts to get teeth.  Any U.S. corporation who attempts to fight against the tariff process will find themselves expending a large amount of money while simultaneously losing the ‘price’ advantage;…. And they will be simultaneously positioned to lose market share to U.S-based, or North American-based, competition.  This is why the USMCA becomes important.  Once the USMCA is ratified it gives U.S. multinationals a definitive long-term position, from which they can calculate their costs.  A tenuous supply chain/manufacturing position in China or Asia, with unknown short-term risks to rising production costs, can be reconciled against a North American supply chain and/or manufacturing position that is well defined and predictable.  It is within this policy dynamic where the ultimate MAGAnomic winners and losers will be found.   Right now the multinationals are trying to keep prior Asia investments viable; however, the clock is ticking.   Those unknown variables have a cost.  “The first loss is the best loss“… and right now President Trump is pressuring U.S. corporations to consider this truism carefully.


thedailyblog--2019-04-11--Closing the gap between the minimum wage and the living wage

The unions and the broader labour movement need to set the goal of closing the gap between the minimum wage and the living wage.  The living wage is calculated in a particular way but has remained about two-thirds of the average wage.  The new living wage number of $21.15 is 66.8% of the average ordinary time wage for the December quarter 2018 of $31.63.  This is useful for us as the CTU goal for the minimum wage is the same ie two-thirds of the average wage. That goal was also the official promise of the Labour Party in the past.  As the minimum wage gets closer to the living wage the goal of cementing in a  living wage rate (or preferably the two-thirds of the average wage goal) to be written into our collective employment agreements becomes more realistic.  The minimum wage is now $17.70 an hour. It is scheduled to increase to $18.90 next April 1, and then to $20 on April 1, 2021.  The current minimum wage is 56% of the average wage.  By the time it reaches $20 an hour in April 2021 it should be 60% of the average if the average wage moves at the same rate over the next two years as it did over the last.  I estimate the gap between the minimum wage and the two-thirds rate at that time will be about $2.15 an hour. Closing that gap as much as possible should be our goal.  In the last collective agreement negotiations in the fast food industry, we got employers to agree to increase their start rates by 10 cents an hour above the minimum wage and for the margins to be maintained for all rates above.  This means that the start rate at McDonald’s, Burger King and Wendy’s is now  $18 an hour or 30 cents an hour above the minimum wage. This is very modest but it is a huge advance in this industry which has successfully resisted ever paying more for their start rates than the minimum in the past. As a union, we also focussed first on getting rid of youth rates and ending zero hours before focussing on getting above the minimum in the last round of negotiations.  Keeping on closing that gap has to remain the goal.  The government has also committed to paying contractors the living wage. If that happens it will be a nightmare for employers like Armourguard who keep nearly all staff on the minimum wage but have contracts at WINZ for example. Having some staff on the minimum and some on the living wage will be untenable in the longer term.  Some major employers like Bunnings have committed to the living wage already.  We need to get the parties that are part of the governing coalition to commit to continuing to increase the minimum wage to two-thirds of the average wage.  An increase of a $1 an hour each year for three years would probably achieve that goal. This is a modest increase after the last three years but will still achieve our goal.  Make the minimum wage the living wage for all workers.


thedailycaller--2019-04-16--OPINION Minimum Wage Laws Are Punishing Young Workers Across The Country

OPINION: Minimum Wage Laws Are Punishing Young Workers Across The Country

The left’s war to impose high government-mandated minimum wages — across the country and at all levels of government — is in full force. Already we are seeing that some of the most vulnerable and inexperienced workers — particularly young workers — are falling victim to these destructive policies.  The unemployment rate for young workers in the United States has generally averaged about twice the unemployment rate for older workers. Meanwhile, the youth unemployment rate in states that permit a lower minimum wage for students and young workers, such as Colorado and Utah, is nearly half that of neighboring states, such as Arizona, that do not.  As employers are forced to pay higher wages to all workers because of arbitrary and rising minimum wage mandates, young workers continue to get priced out of the market and with it so do their opportunities for work experience and career growth.  The evidence on this point continues to mount. The city of Seattle was one of the first local governments to experiment with a hefty minimum wage, which at $15 per hour, is over twice the federal minimum wage. The results for young and inexperienced workers have been abysmal. A study conducted by University of Washington researchers concluded simply, “Seattle’s minimum wage ordinance appears to have delivered higher pay to experienced workers at the cost of reduced opportunity for the inexperienced.”  The reason behind these findings is simple: Rather than hiring younger, inexperienced workers at an artificially high wage, employers have instead directed those wages to older workers and foregone the entry-level positions altogether.  The damage done by government-mandated minimum wages has been particularly devastating for service and retail industries. In New York, for example, the minimum wage has nearly doubled over a short seven-year period. The result has been significant job loss — nearly 6,000 restaurant jobs in 2018 alone — as well as small business closure. This is occurring when jobs in other industries where minimum wage workers are not as prevalent continue to grow.  Arizona is beginning to explore solutions to this problem. That state has a minimum wage that is set to rise to $12 by next year, as a result of a statewide voter initiative supported mainly by out-of-state interests. Some farsighted lawmakers have attempted to address this problem by introducing legislation to allow full-time students who are working part-time to be paid the federal minimum wage rather than the state’s higher minimum wage. Such an approach would make it easier for businesses to offer employment opportunities to younger workers; being forced to pay a high minimum wage would drive many businesses to limit hours and jobs, to younger workers’ detriment.  The minimum wage is cruel to all employees who want to work at an agreed-upon wage but are told by the government that they cannot. It is particularly cruel to young workers just looking to gain valuable work experience, but who will have fewer and fewer opportunities to land those first few consequential jobs. States should be exploring potential solutions to protect their young workers, not creating conditions that take opportunity away from them.  Minimum wage laws should recognize market realities and stop punishing job-seekers trying to fill jobs at wages employers are offering and to which employees have agreed. Laws that reduce minimum wages for job-seekers, including for younger and other inexperienced workers, would help deliver what minimum wage laws have utterly failed to create: more job opportunities for workers just trying to build a career.  Everyone should support that outcome, especially those who don’t want to see this country’s youngest job-seekers left behind.  Jon Riches is the director of National Litigation at the nonprofit Goldwater Institute, an Arizona-based nonprofit dedicated to limited government.  The views and opinions expressed in this commentary are those of the author and do not reflect the official position of The Daily Caller.


thedailycaller--2019-04-22--Minimum Wage Hikes Are Costing California Jobs Study Says

Minimum Wage Hikes Are Costing California Jobs, Study Says

California’s minimum wage increase has cost the state thousands of jobs worth of growth in the state’s booming restaurant industry, according to a recent study by the University of California Riverside.  California passed a bill in 2016 to bring the state’s minimum wage up to $15 an hour. For businesses with more than 25 employees, the state’s minimum wage rose to $12 in January and will hit $15 in January of 2022. Other businesses have until 2023 before the full $15-an-hour minimum takes effect.  “The research does not suggest that the minimum wage should not rise or that rising wages do not have any benefits,” the study’s author Christopher Thornberg said in a statement, according to Restaurant Business Online. (RELATED: Almost Three-Quarters Of Economists Say A $15 Minimum Wage Is A Bad Idea)  “However, increases to the state’s minimum wage in recent years have been the fastest since California first set a minimum wage in 1916 — and that pace is creating certain negative consequences for smaller businesses and people who need the most help rising out of poverty,” Thornberg said.  “Data analysis suggests that while the restaurant industry in California has grown significantly as the minimum wage has increased, employment in the industry has grown more slowly than it would have without minimum wage hikes,” the study, published in April, says. “The slower employment is nevertheless real for those workers who may have found a career in the industry.”  Researchers studied the minimum wage’s current effects on businesses from high-end restaurants to fast-food shops. They found the minimum wage has more of an impact on full-service restaurants where customers are served by waiters and food is brought straight to the table. Researchers also found that the minimum wage slowed growth more in low-income areas.  “The impact of a higher real minimum wage on employment growth is roughly twice as high in low income compared to higher income communities in full-service restaurants,” the study says. Employment throughout the restaurant industry is affected more in poorer areas.  Researchers estimate that the minimum wage increases will cost the state roughly 30,000 jobs from 2017 to 2022.  “The model suggests that there would be 30,000 fewer jobs in the industry from 2017 to 2022 as a result of the higher minimum wage,” the study says. “Over the period 2013-2022, therefore, the number of new jobs in the full-service industry will grow by 120,000, but would have grown by 160,000.”  Content created by The Daily Caller News Foundation is available without charge to any eligible news publisher that can provide a large audience. For licensing opportunities of our original content, please contact licensing@dailycallernewsfoundation.org.


thedailyexpress--2019-03-19--UK could be forced to HIKE minimum wage if Brexit delayed - Italy push for EU-wide pay

Italian Prime Minister Giuseppe Conte wrote in a letter to the Republic that the European Union must make an "effort of collective responsibility" to address the issue youth unemployment in countries belonging to the bloc. He said the upcoming elections to the European Parliament in May could be a “precious opportunity” to start thinking about introducing a minimum wage aimed at all EU citizens. If the UK delays its withdrawal from the EU past its scheduled date of March 29, it could be forced to be part of the debate over the new proposals.  Mr Conte said the EU "must pursue an effective protection of the dignity of people, protecting both the salary of citizens and the unemployed, providing for example a European insurance against unemployment, as well as the introduction of a European minimum salary, as proposed, moreover, from members of our government”. He added: “The forthcoming renewal of the European Parliament is a precious opportunity to start a frank and informed debate, which we will also have to extend to the causes that led to the current crisis of the integration process. The prime minister currently defines the relationship between citizens and European institutions “as decisive”. But this new scheme could help strengthen the EU further.  He wrote: “To courageously realise the ambitious project of creating a European demos, it is necessary to strengthen the role and powers of the European Parliament, the only institution directly legitimised by the citizens' vote. "We can now think of a European public opinion. For this we must also look favourably at the introduction of institutions of direct democracy".  In the letter, Mr also Conte addressed the issue of austerity. He said: "Social security and job creation also means a Europe that does not remain a prisoner of the growth-stability dilemma.”  Mr Conte also proposed a "a new European partnership with Africa" in his letter.  On the migrant front, he stressed all the members of the EU have a shared responsibility to help. He said: "a shared responsibility of the Member States is imposed, based on solidarity and cohesion, in line with the path indicated by the European Council of 28-29 June 2018.  "Responsibility, solidarity, growth and work, stability, competitiveness and leadership towards the rest of the world, are all pillars without which the European building remains unbalanced and at risk of collapse.  “To keep these pillars in place - Conte observes - an increasingly rare material is needed in today's Europe and we must all urgently recover it: trust. The recovery of trust is essential, because without trust - he concludes - we will not be able to reach any goal, while the world will go further and further.”


thedailymirror--2019-02-07--Low-paid workers will get 2600 wage rise under Labour Jeremy Corbyn declares

Low-paid workers will get £2,600 wage rise under Labour, Jeremy Corbyn declares

Low-paid workers will get a wage rise of more than £2,600 per year under a  Labour  government, Jeremy Corbyn has said.  Mr Corbyn was using a visit to Worcester today to accuse the Government of creating a "perfect storm of low pay, insecurity and working poverty".  Labour says that analysis by the House of Commons Library shows that the party's promise to raise the National Living Wage to £10 an hour in 2020 would give a boost of £2,640 to workers on the payment level.  The party also states that research by Labour indicates that the number of adults living in families where one or more person is working, who do not have any savings, has risen to 12.8 million.  Labour says this is an increase of 2.5 million since 2010, with a rise of more than one million between 2015/16 and 2016/17 alone.  Mr Corbyn was due to say: "With real wages lower than they were 10 years ago, deep cuts to social security, rising borrowing just to make ends meet and the growth of insecure work, the Conservatives have created a perfect storm of low pay, insecurity and working poverty.  "This rising insecurity, with so many without savings to fall back on, is causing terrible stress for millions of families across the country.  "These scandalous levels of in-work poverty are unacceptable and must be brought to an end.  "Every job should provide dignity and security. That's why the next Labour government will introduce a Real Living Wage putting over £2,600 per year more in the pockets of around six million low-paid workers, stop the roll-out of Universal Credit and ban zero-hours contracts."  A Conservative Party spokesman said: "Jeremy Corbyn's numbers don't add up, and just like last time and it's ordinary people who would pay the price through lower wages, higher taxes and fewer jobs.  "They always take it too far.  "It's because of our National Living Wage that millions of hard working British people have seen a pay rise increasing their wage by £2,750, with the lowest paid seeing the biggest pay rise whilst over three million people have been helped into work.  "At the same time we've cut taxes for 32 million people, taking the lowest paid out of paying income tax altogether, and taken action to reduce the cost of living."


thedailyrecord--2019-03-15--New College Lanarkshire officially an accredited living wage employer

New College Lanarkshire has officially been named an accredited living wage employer by Living Wage Scotland.  The commitment will see everyone working at the college, regardless of whether they are direct employees or third-party contracted staff, receive a minimum hourly wage of £9.  This rate is significantly higher than the statutory minimum for over-25s of £7.83 per hour introduced in April 2018.  Positively impacting modern apprentices and contractors with the college, the real living wage is an hourly rate set independently and updated annually, calculated according to the real costs of living.  Moira Jarvie and Collette Bradley, Unison representatives at the college, said: “Unison is pleased that New College Lanarkshire has now achieved living wage accreditation in line with the National Agreement with Support Staff Unions to do so.  “We commend the college for finding a way to ensure that the low paid staff are now being paid the living wage without further delay, and urge other colleges in the sector to follow this example.  “Unison has long been leading the way in campaigning and negotiating on this issue and was responsible, through the pay deal in 2015/2016, for the introduction of the living wage in all of Scotland’s colleges for directly employed staff.  Click here for more from Monklands  “As part of the same deal, colleges agreed to work to achieve living wage accreditation status by December 2016.”  Martin McGuire, the college’s principal and CEO, reaffirmed its commitment to its employees, saying: “Being accredited as a living wage employer demonstrates our commitment to every single person who works at New College Lanarkshire and adds to its success.”  Peter Kelly, director of the Poverty Alliance, added: “The real living wage is one of the key tools at our disposal to help make an impact on levels of in-work poverty in Scotland.  “There is a strong business case for paying the real living wage; but crucially it allows those in work to become more included in society, better provide for their families, and feel that their value and hard work is recognised by their employer.  “We are delighted to congratulate New College Lanarkshire on becoming a living wage employer. I hope more organisations follow their lead by becoming accredited.”  Julie McGahan, Living Wage Scotland manager, said: “We are delighted to welcome New College Lanarkshire to the living wage movement.”


thedailyrecord--2019-12-17--Perth and Kinross councillors urge staff wage rise for Christmas

Two Perth and Kinross councillors are calling for the council to bring some festive cheer with a pay rise for its real living wage employees.  Last month the Living Wage Foundation upped the real living wage from £9 to £9.30 an hour.  PKC is an accredited real living wage employer but has not yet introduced the 30p hourly pay rise to the 262 council employees on this rate.  The council was expected to implement the increase in May 2020 after setting its budget for 2020/21  The real living wage is voluntary. The Living Wage Foundation says it is calculated by what people need to live, based on a basket of household goods and services.  The national living wage, which councillor Alasdair Bailey describes as “essentially a re-branding of the government’s minimum wage that took place a few years ago” is for over 25s and is set at £8.21.  The national minimum wage for under 25s at £7.70 is also statutory and set by the UK Government.  Tomorrow a meeting of all PKC’s elected members will be asked to approve a motion, put forward by Labour councillor Alasdair Bailey and independent local member Xander McDade, to introduce the increase with immediate effect.  Cllr Bailey said: “The increase to the real living wage to £9.30/hr was announced in early November.  “PKC is an accredited real living wage employer and would therefore normally pass this increase to our 262 people who are on this rate effective May 1, 2020.  “However, I believe strongly that since this rate is calculated based on increases in rent, transport costs and council tax bills that have already hit people’s pockets, the right thing to do is to pay it with effect from the date of announcement.  “I hope that colleagues on the council will again agree to this as they did in 2018.  “It will be fantastic if we can give the council’s workforce a strong sign of our gratitude to them in the run up to Christmas by offering this increase to the 262 eligible people six months early.”  The motion states: “[The] council notes that an increase in the real living wage to £9.30 per hour was announced by the Living Wage Foundation in early November.  “This increase takes into account higher transport costs, private rents and council tax bills that have already hit the pockets of our staff.  “As an accredited living wage employer, [the] council would ordinarily pass on the new rate effective 1 May 2020.  “[The]council instead agrees to pay the new £9.30 per hour real living wage rate effective November 1 2019.  “The costs of doing so will be £26,000 to be funded from the projected under spend in the unfunded pensions budget which was reported to the strategic policy and resources committee on November 27, 2019. Two-hundred-and-sixty-two staff members will benefit from this change.  “This position will be kept under review in future financial years.”


thedailyrecord--2019-12-29--Enforcing laws on minimum wage cheat employers should be top resolution for Boris Johnson

For anyone lucky enough to earn a decent wage, it’s difficult to imagine the misery of working full-time and still not being able to escape grinding poverty .  And yet the shameful reality as Scotland prepares to usher in the year 2020 is that thousands of people spend their lives trapped in exactly that position.  They graft long hours in tough conditions many better-off members of society simply wouldn’t accept, only to end the week unable to put food on the table for their children or heat their home.  Citizens Advice – using official HMRC figures – has estimated 37,000 workers aren’t even being paid the legal minimum. This is utterly unacceptable.  To be clear, this is not people who aren’t earning the £9.30 Real Living Wage – the amount the Living Wage Foundation has calculated to be the absolute minimum needed to live.  That figure is voluntary and, as a consequence, is ignored by many employers, rendering it an unattainable dream for hundreds of thousands of people.  What we are talking about is the £8.21 National Living Wage – a legal requirement for any employee over the age of 25.  Mhoraig Green, Citizens Advice ’s social justice spokeswoman, is absolutely right to say these statistics should be a “wake-up call” to the Government and that this year the minimum wage must become a legal reality.  Her charity has called for a new body to have the powers to investigate violations. And she points out that with living costs rising and social security support reducing, people who go out to work should be able to “earn a wage that allows them to live a decent life, provide for their family and live in dignity”.  If there was ever a win-win policy for any government, it would surely be a zero-tolerance approach on this issue.  There are a number of reasons why, in a global environment, convincing companies to pay their fair share of tax is not an easy task.  Enforcing laws on minimum pay should, by contrast, be relatively simple.  Doing so provides an easy way to increase the amount of profit being shared among the people whose labour produces it, while reducing the reliance of poorly paid workers on state benefits, thus boosting the country’s balance of payments.  If Boris Johnson wants to prove he really is a One Nation Conservative , genuinely concerned with the lot of ordinary people, making this a priority would be a good way of showing it.


thedenverpost--2019-11-19--Colorado reworks minimum wage and overtime pay rules

Minimum wage coverage, overtime pay and mandatory breaks will be extended to a broader array of workers in the state under a proposal released Monday from the Colorado Department of Labor and Employment.  After holding public hearings earlier this year, the department’s Division of Labor Standards and Statistics has drafted a major revamp of the Colorado Overtime and Minimum Pay Standards Order.  “Hundreds of thousands of workers who would not have been able to qualify for workplace protections such as overtime pay or even being paid the state minimum wage will now be eligible,” Kathy White, deputy executive director for the Colorado Fiscal Institute, said in a statement on the proposed order.  The state’s current minimum wage order covers workers in four broad categories: retail and service; food and beverage; commercial support service; health and medical.  But that division created gray areas and resulted in needless litigation over wage claims, labor advocates argued. It also contributed to Colorado having the highest rate of workers contributing unpaid overtime in the country, according to Joblist.  The new order, which has been a priority of the Polis administration, covers all Colorado workers unless they are specifically excluded. One of the biggest changes involves bringing in more construction jobs.  Doctors, lawyers and teachers will remain exempt from the order, and so will the bulk of agricultural workers.  In a concession to nonprofits, the highest-paid and the highest-ranking employees will be excluded from overtime rules, regardless of salary level.  Colorado plans to exclude individuals who own 20% or more of a business from minimum wage and overtime pay requirements, even if they draw a salary.  Federal rules exempt salaried workers, primarily those in professional, administrative and managerial positions, from overtime pay requirements if they make more than $35,568 a year.  That exemption level, which was lifted this year, is below the $47,476, adjusted for inflation, that the Obama administration had proposed in 2016.  Even with the higher federal exemption level, a restaurant or hospitality manager making $36,000 a year who puts in more than 60 hours a week could end up earning less than the state minimum wage.  States are allowed to set a higher exemption level, which Colorado plans to do. Salaried workers will be eligible for overtime pay unless they make more than $42,500 next year. That amount will adjust by $3,000 a year until it reaches $57,500 in 2026. After that, the cap will adjust based on the area consumer price index.  The Bell Policy Center estimates that 185,000 Colorado workers will receive additional protections at the higher threshold.  Labor groups, although they got most of what they wanted, argue the top exemption level should kick in immediately. And they aren’t happy that agricultural workers remain excluded.  “These are among the most marginalized and vulnerable workers in our state, and they’ve been historically excluded from many critical protections,” said David Seligman, executive director of Towards Justice, a labor advocacy group, in a statement.  That agricultural exclusion, which also exists in federal law, partly reflects the long hours in a concentrated period required to harvest crops.  The Division of Labor Standards will hold a public hearing at 3 p.m. Dec. 16 to discuss the proposed order, with the final deadline for comments on Dec. 31. The final rule is expected to come out on Jan. 10.


thedenverpost--2019-11-26--Denver City Council unanimously approves minimum wage hike starting Jan. 1

The Denver City Council unanimously increased the citywide minimum wage Monday night to thundering applause throughout its chambers.  The new law requires employers to bump hourly employees to at least $12.85 on Jan. 1, with a second raise to $14.77 following at the start of 2021, and a third to $15.87 in 2022. After that, the new law mandates that it will then be adjusted annually for inflation using the Consumer Price Index.  Public comment was overwhelmingly, if not entirely, in favor of the law, which places Denver as the first Colorado city to raise the local minimum wage. Ultimately, the council voted 11-0.  The raises are overdue and while the end goal of $15.87 per hour is a step in the right direction, many said, the council must already consider the next steps.  “Fifteen is going to be rough in two years still,” said Adam Alleman, owner of the Game Lounge in Park Hill. “It’s tough for people to make it out here.”  Initially, the ordinance proposed to mandate the raises in two tiers, reaching $15.87 by 2021, though that plan was mellowed after some criticized it as too aggressive or quick. Mayor Michael Hancock’s office later announced the three-tiered approach and the bill was introduced by Councilwoman Robin Kniech, who called it history in the making Monday night.  “Tonight is about getting parents a few extra hours with their kids,” Kniech said. “It’s about making ends meet. It’s about the chance to stay in your city that you love.”  “This increase to Denver’s minimum wage will provide a little bit of relief for those who are struggling the most — families who must choose between putting food on the table and paying rent or buying medicine,” Hancock said in a statement. “This is a milestone moment for our city.”  Councilman Chris Hinds offered a small amendment to the measure to make clear that unlike state law, the city measure requires that all adults, regardless of their ability or disability, must be paid the minimum wage under the measure. Only certain minors enrolled in certified youth employment programs allowed under the ordinance can be paid up to 15% less than the minimum.  Hinds’ amendment was unanimously accepted by the council.  Kniech and many others lauded the measure as a victory for not only Denver’s working class, but also women and minorities, who so often hold the city’s lowest paying jobs.  Speaking in Spanish and with the help of a translator, Pedro Carillo said he works as a janitor in Denver and, while the measure won’t solve all the city’s problems, it is a step in the right direction.  The federal minimum wage hasn’t changed since 2009. The statewide minimum wage will rise to $12 an hour next year, but a new state law enables local governments to set higher minimum wages starting Jan. 1.  For tipped employees, that number is even lower, however. Even with the new law, tipped workers can be paid $3.02 per hour less than the minimum wage.  While the Colorado Restaurant Association has threatened to sue if the ordinance was passed, representatives did not immediately respond to requests for comment Monday. The organization argued that cities can’t raise their own minimum wages until 2021 under the new state law.  Sonia Riggs, the association’s CEO, previously raised concerns that the minimum wage hike could widen the pay gap between tipped employees and back-of-house staff, often lower earners than their front-of-house counterparts.  In addition, Riggs said businesses’ already thin profit margins could suffer by the mandatory wage increase.  She did, however, praise the three-tiered ordinance over the initial proposal, expressing appreciation for the city’s willingness to move slower.  Alleman said he’s not worried about paying his employees more, however. Ultimately, it should mean that customers spend more money in his business, he said.  Laurie-Ann Mills welled up as she thanked the council for the measure, recalling four decades in the workforce, sometimes “exploited” for little more than $2 an hour. The forthcoming raise should allow Mills and others to be a part of the Denver community and offer enough money for them to grab a sandwich from an old neighborhood coffee shop from time to time, she said.  “We’re not free until all of us are,” said Robel Worku, of the Colorado People’s Alliance, which supported the measure. “When we shift wealth, we shift power” and that’s the way toward justice.  But still another shift will be needed soon, said Councilman Paul Kashmann.  Denver is “getting closer to the point where two people working full time will be able to meet the basic financial needs of a couple living with two children,” Kashmann said. “We’re not there yet, but we’re getting closer.”  For a single parent, however, the city still falls “far, far short.”