Courtesy of Mish.
Unhappiness is spreading with minimum wage hikes.
Those on the job for a few years complain to deaf ears that they deserve more than new hires who don’t know the ropes.
Some think this is an unforeseen consequence. I see at as a planned consequence.
The Wall Street Journal reports Push for $15 Raises Pay—and Tensions.
The growing push to raise the minimum wage to as much as $15 an hour is creating new issues in the workplace: While some of America’s lowest-paid workers will get fatter paychecks, their veteran colleagues may feel underpaid.
At Gap Inc. and Wal-Mart Stores Inc., which recently increased wages, store managers have had to address employee questions about fairness and pay. Some companies have raised pay for veteran workers, and others plan to offer extra fringe benefits, fearing that valuable workers might otherwise jump ship.
In Seattle, where city laws require many large employers to phase in a $15 minimum wage by 2017, Mud Bay store employees now earn at least $12 an hour, with 50-cent hourly pay hikes planned for September and January 2017.
“I’d love to be able to pay you a dollar more but there are costs,” Ms. Knowles told store employees, adding, “we’re still in business to make money.”
Some economists say minimum wage increases could boost productivity, curb worker turnover and prompt stronger spending from low-income families. Detractors warn wage hikes could come with higher prices for consumers and weigh employers down with hefty costs.
Rising Tide
Rising Wages and Productivity
Apparently a rising tide does not lift all boats, at least yet.
