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Will Minimum Wage Hikes Affect Auto Repair Shop’s Technician’s Pay?


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It is going to effect pay and the value of the dollar across the board. If minimum wage goes up 7 dollars and pretty much doubles cost of goods is going to go up. At that point your guys that were working for 25 an hours are going to need to be making 32 an hour to keep the same life style.

 

7 dollars an hour more on their paycheck is going to equate to a 10-13 dollar an hour actual cost increase, I know if it happens in my state we will have to raise our labor rate but 12-15 dollars an hour. Or to many more states out there.

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And in the end its all the same as it ever was. Min wage goes up 100%, next thing is your Big Mac goes up 100%, gallon of gas doubles, my labor rate goes up, grocery bill doubles, and ultimately any saved up cash is worth 1/2. The people making minimum wage are still going to be poor, sorry to dissapoint.

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CITIES

Seattle sees fallout from $15 minimum wage, as other cities follow suit


128x128-dan-springer.jpg?ve=1&tl=1



By Dan Springer



Published July 22, 2015














NOW PLAYING

Seattle grapples with fallout from $15 minimum wage policy







Seattle’s $15 minimum wage law is supposed to lift workers out of poverty and move them off public assistance. But there may be a hitch in the plan.


Evidence is surfacing that some workers are asking their bosses for fewer hours as their wages rise – in a bid to keep overall income down so they don’t lose public subsidies for things like food, child care and rent.


Full Life Care, a home nursing nonprofit, told KIRO-TV in Seattle that several workers want to work less.


“If they cut down their hours to stay on those subsidies because the $15 per hour minimum wage didn’t actually help get them out of poverty, all you’ve done is put a burden on the business and given false hope to a lot of people,” said Jason Rantz, host of the Jason Rantz show on 97.3 KIRO-FM.


The twist is just one apparent side effect of the controversial -- yet trendsetting -- minimum wage law in Seattle, which is being copied in several other cities despite concerns over prices rising and businesses struggling to keep up.


The notion that employees are intentionally working less to preserve their welfare has been a hot topic on talk radio. While the claims are difficult to track, state stats indeed suggest few are moving off welfare programs under the new wage.



Despite a booming economy throughout western Washington, the state’s welfare caseload has dropped very little since the higher wage phase began in Seattle in April. In March 130,851 people were enrolled in the Basic Food program. In April, the caseload dropped to 130,376.


At the same time, prices appear to be going up on just about everything.


Some restaurants have tacked on a 15 percent surcharge to cover the higher wages. And some managers are no longer encouraging customers to tip, leading to a redistribution of income. Workers in the back of the kitchen, such as dishwashers and cooks, are getting paid more, but servers who rely on tips are seeing a pay cut.


Some long-time Seattle restaurants have closed altogether, though none of the owners publicly blamed the minimum wage law.


“It’s what happens when the government imposes a restriction on the labor market that normally wouldn’t be there, and marginal businesses get hit the hardest, and usually those are small, neighborhood businesses,” said Paul Guppy, of the Washington Policy Center.


Seattle was followed by San Francisco and Los Angeles in passing a $15 minimum wage law. The wage is being phased in over several years to give businesses time to adjust. The current minimum wage in Seattle is $11. In San Francisco, it’s $12.25.


And it is spreading. Beyond the city of Los Angeles, the Los Angeles County Board of Supervisors this week also approved a $15 minimum wage.


New York state could be next, with the state Wage Board on Wednesday backing a $15 wage for fast-food workers, something Gov. Andrew Cuomo has supported.


Already, though, there are unintended consequences in other cities.


Comix Experience, a small book store in downtown San Francisco, has begun selling graphic novel club subscriptions in order to meet payroll. The owner, Brian Hibbs, admits members are not getting all that much for their $25 per month dues, but their “donation” is keeping him in business.


“I was looking at potentially having to close the store down and then how would I make my living?” Hibbs asked.


To date, he’s sold 228 subscriptions. He says he needs 334 to reach his goal of the $80,000 income required to cover higher labor costs. He doesn’t blame San Francisco voters for approving the $15 minimum wage, but he doesn’t think they had all the information needed to make a good decision.




Dan Springer joined Fox News Channel (FNC) in August 2001 as a Seattle-based correspondent.













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Alfredauto hit the nail onthe head! Wake up people! It'salla sham! All costs will rise. Furthermore, this only weakens the dollar. That's the result of inflation. If it takes $100 to buy what currently costs $50....then who has been helped? Only the folk who could afford it to begin with...the Elite. This is just a precursor to the dollar falling. So as a shop owner I must charge more...why? My techs living expenses rise so they need higher pay. The part stores employee needs higher pay so part store charges more for parts. The landlord living expenses increase so they want more income so my rent goes up....so everybody loses! Whether you pay tech my hourly or percentage... you will have to pay more and charge more. I predict these results within the first year of wage increases. Think about it, it won't take me long to realize that my expenses have surpassed my income...n I'll need to adjust my pricing. Not rocket science.

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It's already affecting my biz. In California, if you require employees to supply their own tools, you must pay double min wage. Flat rate as we know it is illegal in the state also.

I am at the point where I could use another helper/lot person, but at today's labor cost, it's not in the budget.

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  • Have you checked out Joe's Latest Blog?

         0 comments
      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.
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