For the purest perspective on this week’s most crashing news – the Los Angeles City Council’s widely criticized, all-but-final approval of the $15 minimum wage – we turn to a downtown Culver City restaurateur who says he already has been negatively affected.
It is universally, and angrily, agreed that the restaurant industry, across Los Angeles County and beyond, will be harder struck than any other enterprise by the new hourly minimum.
“Certifiably nuts” is the reflected label Alan Shulman of the popular Akasha restaurant pinned on City Council members and breathless state legislators who are dashing to emulate the Council statewide. At this moment, the state minimum wage is scheduled to leap to $10 on Jan. 1. A fierce campaign currently is under way to bump it to $11 instead.
One huge handicap, in the view of restaurateurs, is that the gentlemen and ladies rendering these life-changing decisions lack both business experience and knowledge. Their familiarity with the field is cursory, the charge goes.
“These are people who have no understanding of the impact,” said Mr. Shulman.
The spectacularly self-congratulatory City Council is a prime target. Their 13-1 vote two days ago, Mr. Shulman believes, proves they only see one shiny, tiny, feel-good corner of the picture, not the whole surface, the serious portion.
“The minimum wage is not the problem,” he said. “In the restaurant industry, nobody disagrees with raising the minimum wage.
“But to not – not – take the total compensation of the individual into the equation is unconscionable.”
(The California Restaurant Assn. has been trying to gain relief for tipped workers, waiters/waitresses, who, on average, make $24 per hour in California.)
It is utterly perplexing to the operator of Akasha and entrepreneurs elsewhere.
The exasperated Mr. Shulman said that “if the individual paid tax to the IRS based on their total income, how can the state not value that on an hourly basis.”
In different words, the contention is that when the Los Angeles law takes effect on July 1 of next year, the income of waiters and waitresses, with tips figured in, will rocket to undreamed of levels.
“This makes no sense,” Mr. Shulman said.
(To be continued)
“Undreamed of levels,” you say. But it might be okay if a worker’s dreams occasionally come true. Up the cost of that coffee cup if you must, and let your customers share a bit more in offering a reality wage for your workers, but let’s not dump on their “dreams.”
Ron Davis
I couldn’t agree more with Alan. The unstated problem within this State is that we are encouraging under-educated, illegal aliens to come here driving wages down for everyone who can legally work here. Further, we are forcing shortages in housing with this uncontrolled influx of people.
Raising the minimum wage is an idea born of Labor Unions who are desperate to recruit more members. If you need an example look to the movement in LA to exempt minimum wage Union shops! Really? How blatant….
Should there never be any incentive for a person to strive for more and work to get or improve a skill? Oh, I forgot, we have a welfare system for that. Anyone notice how tens of thousands of people “found” work after the 99 week vacation ended? Oh, by the way California employers are still paying a surtax to the Feds because the State owes them money for those vacations.
I couldn’t agree more with Alan. The unstated problem within this State is that we are encouraging under-educated, illegal aliens to come here driving wages down for everyone who can legally work here. Further, we are forcing shortages in housing with this uncontrolled influx of people.
Raising the minimum wage is an idea born of Labor Unions who are desperate to recruit more members. If you need an example look to the movement in LA to exempt minimum wage Union shops! Really? How blatant….
Should there never be any incentive for a person to strive for more and work to get or improve a skill? Oh, I forgot, we have a welfare system for that. Anyone notice how tens of thousands of people “found” work after the 99 week vacation ended? Oh, by the way California employers are still paying a surtax to the Feds because the State owes them money for those extra benefits. More later