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

[Joe Marconi]

There is been a lot of discussion lately across this nation about raising the minimum wage. I am not going to debate that issue today, but I will go on the record that I believe it may affect our industry and how we pay out technicians.

 

With companies such as Wall Mart, McDonalds, Starbucks, Chipotles, and many more increasing wages, this will send a message to the workforce that wages need to be more in line with the needs of the worker.

 

Pay scales for techs are all over the map depending on where you are in the country. But, the age old issue is that we need to attract quality entry-level people to our industry. With chatter that entry-level positions in the fast food chains and other big box stores may exceed $10.00 per hour and even reach $15.00, we need to take a look at what we pay our people.

 

The bottom line here is truly the “bottom line”. Shop owners cannot simply raise wages unless the shop’s profits are enough to support the raise. Shop owners need to take a long hard look at their pay plans and ensure that you offer competitive wages, but importantly, offer a work environment and career paths that will attract quality people.

 

Your thoughts?

 

 

[CARMandP]

I don't think it will affect the pay of the experienced techs but how many of us will do without the entry level guy or the cleanup guy and force the rest of the people to do more work?

[John Pearson]

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.

[alfredauto]

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.

[ncautoshop]

https://youtu.be/ZI9aDHLptMk

 

Sent from my SM-N910V using Tapatalk

[tirengolf]

CITIES

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

By Dan Springer

Published July 22, 2015

FoxNews.com

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Seattle grapples with fallout from $15 minimum wage policy

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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.

[davine4real]

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.

[Dan Winter]

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.

[phynny]

If you pay less than $10/hour at a shop then you have already have issues at your shop.