{"article":{"id":63756,"heading":"Living Wage Laws Killing Jobs and Businesses","author":"Ed Tinsley","created":"2003-06-08 08:10:39","modified":"2003-08-20 03:06:09","last_modified":"Wed, 20 Aug 2003 10:06:09","article":"

Even in the midst of an economic boom, how many small business owners can afford a 65% raise for their entire entry-level staff or manage an extra $184,912 in payroll costs when they hire a 25th employee?

Now consider the economic downturn with which most of America is being challenged, and ask yourself the same question.

If the first answer was \"none,\" the second should be \"absolutely none.\"

While the debate in our nation's capital rages regarding the most effective way to increase economic activity, one thing remains certain: increasing employment and economic growth is a top priority.

In other parts of the country, however, this message has not been heard. Santa Fe, New Mexico has become the latest victim of the \"living wage\" virus that is crippling businesses and stagnating local economies across the country.

Passing these destructive local ordinances will invalidate any relief provided by our nations' leaders, leaving their citizens mired in unemployment.

In what has become the national \"model\" for wage activists, Santa Fe is imposing an $8.50 per hour \"living wage\" on all businesses with 25 or more employees -- the highest nationwide, and the only one of its kind to impact so extensively private industry. This is the work of union-funded labor activists who have been pushing the living wage concept on dozens of U.S. cities.

Their success is rampant: nearly 100 U.S. cities have passed living wage laws since 1996 and their pace is accelerating; however, most, if not all of these, specifically apply to companies that do business with local government.

While Santa Fe is just the latest to be seduced by activists' pseudo-economics, they are unique in challenging any business of size to see if they can jack up prices high enough to cover huge labor cost hikes.

State and local legislatures are working hard to help growing businesses stay afloat during this economic slump. Santa Fe's newly enacted ordinance, which will push minimum wage rates to an astounding $10.50 in 2007, is sure to shrink their economy as businesses flee to more reasonable and friendly communities.

Our system of family restaurants employs approximately 1,000 people across four states: Texas, Oklahoma, Colorado and New Mexico.

While I love New Mexico and want to build more units right here at home, I remain very concerned as just how far this will spread from Santa Fe.

My concerns are not alone.

Changed plans

Robert Powell has 200 workers at his employee staffing business. With his labor costs potentially 65 percent higher than his smaller, exempt competitors, it is becoming clear that these new rules will force him out of business or out of Santa Fe. Mr. Powell expects to move his company and take those jobs with him.

Tom Allin operates an Asian restaurant in Santa Fe and anticipates a \"compression effect\" when the new wage rates take effect. Currently, his assistant managers are paid $9.00 per hour for their experience -- 75 percent more than new busboys who receive a $5.15 per hour training wage. When the busboys make $8.50 per hour, the assistant managers will insist on keeping their 75 percent differential. Mr. Allin is realizing that he will be forced to give them an equivalent raise to $14.85, ruining the restaurant's chances to compete with \"exempt competitors,\" who have fewer than 25 employees.

Nambe Mills, known worldwide for its high quality silver products, provides Santa Fe with hundreds of good paying jobs and has paid millions in taxes for over 50 years. We cannot afford to alienate these valuable components of our economic base. We are just about to do so.

Plunkett Research had long planned to open a Santa Fe office -- until they saw the living wage ordinance pass. Citing a \"poor business environment,\" they found that arbitrary wage minimums would make it difficult to attract the investors and business partners they had hoped to bring with them.

Local realtors have seen plans to move to Santa Fe postponed or cancelled: a national grocery store and several major restaurant chains are reconsidering moves to Santa Fe.

Criminal charges

To add insult to injury, labor activists made sure that the Santa Fe living wage ordinance criminalized violations. A 24-employee firm will be committing a crime if it hires a one-hour-per-day temp for a month without boosting everyone's pay in accordance with this ordinance.

Unbelievably, the owner could be punished with a maximum fine of $360,000 and up to 180 years in prison.

Wiser communities are now taking advantage of the City Council of Santa Fe's folly. Albuquerque and Lincoln County in southern New Mexico, for example, are advocating ordinances to prevent their communities from adopting living wage laws while urging affected Santa Fe businesses to relocate to these areas instead of fleeing New Mexico altogether. Many of the businesses of Santa Fe will be faced with only two options: stay in and suffer the economic famine or move on in search of greener pastures.

Fleeing businesses, lost jobs, and jail time for noncompliance: This is not how I would prescribe a formula for economic recovery. Nonetheless, living wage activists, emboldened by their win in Santa Fe, are trying to push this model on the rest of the nation. Those to follow cannot afford this kind of economic development.

<\/p>\n","contact":"","link":"http:\/\/www.marketwatch.com\/news\/yhoo\/story.asp?guid=%7B21897815-4875-4657-84AA-014E48B3B98E%7D&siteid=myyahoo&dist=myyahoo","address":"","phone":"","parent_id":0,"mime_type":"text\/plain","summary":"Local 'Living Wage' ordinances passed by well meaning city councils are killing jobs and businesses. The author of this article is President and CEO of K-BOB'S Steakhouses, a family restaurant chain headquartered in New Mexico, with 26 locations in New Mexico, Texas, Colorado and Oklahoma.","numcomment":20,"fileurl":"\/uploads\/","filesize":null,"article_url":"\/news\/2003\/06\/63756.php"},"attachments":[],"comments":[{"id":63758,"heading":"What use is a job if you can't live off of the wages?","article":"Work that pays insufficiently for survivial benefits only the slave driver and not the slave. Even slaves received enough to live on (shelter, food, etc.). Sub-survival wages provide even less.","author":"@","parent_id":63756,"mime_type":"text\/plain","created":"2003-06-08 09:21:35","modified":"2003-06-08 09:21:35","fileurl":""},{"id":63805,"heading":"Pay Decent Wages or Go Away","article":"If you can't afford to pay decent wages, you can't afford to be in business. There is no law that says you have to be a capitalist. If you wish to derive your income from the labor of others, namely profits, then you had better pay a decent living wage.\r\n\r\nAs to this country's economic problems, they are caused by capitalism. The solution is socialism. Only labor, which creates all wealth, can put an end to this stinking rotten capitalist system and establish socialism.\r\n\r\nKeep these stinking anti-labor reprints from the capitalist websites off Independent Media. This website exists to promote the needs and interests of the workingclass. We can read your capitalist trash everywhere.","author":"Socialist","parent_id":63756,"mime_type":"text\/plain","created":"2003-06-08 17:14:30","modified":"2003-06-08 17:14:30","fileurl":""},{"id":63808,"heading":"Oh, I don't know.....","article":"It works great if you're a corporation receiving tax supports or subsidies. You just don't like the public\r\ntreasury being used for public needs.","author":"Sheepdog","parent_id":63756,"mime_type":"text\/plain","created":"2003-06-08 17:36:43","modified":"2003-06-08 17:36:43","fileurl":""},{"id":63816,"heading":"1 biz i had","article":"vid-store with 2employees, fiveyrs back, not including ikkybob. i paid $2Cdn over the min. in wages; felt min. was disgusting...so...__bottomline: wages for small biz are VERY small compared to other things, like stock and utitlities,rent,tax,etc...on further inspection, duh!, my new(?) homemaintenance biz(doin' for 5yrs offandon) can easily absorb 15-->25$$ \/hr. wages!!\r\n-->could be ,,,,larger co's aint hirin' competent managers to manage?? an extrapolation only","author":"cuzin it","parent_id":63756,"mime_type":"text\/plain","created":"2003-06-08 18:39:13","modified":"2003-06-08 18:39:13","fileurl":""},{"id":63831,"heading":"Socialist Jackass","article":"So, where does ANYONE work? How does ANYONE eat? Stupid bastard, produce something on your own then make a moronic comment like "pay a decent wage or go home." Where do you think wages come from? SOMEONE has to make something someone else wants. Who do you think is going to do it, the government? Moonbat asshole. ","author":"Burma","parent_id":63756,"mime_type":"text\/plain","created":"2003-06-08 21:56:09","modified":"2003-06-08 21:56:09","fileurl":""},{"id":63854,"heading":"OneEyedMan","article":"You barking half-wit, what the fuck howlin' about? Do you think it is socialist to demand a decent wage? You're and idiot...go away now......go place your head back in your ass or da Shrubs ass...whatever ass you are temporarily missing...","author":"KPC","parent_id":63756,"mime_type":"text\/plain","created":"2003-06-09 04:00:19","modified":"2003-06-09 04:00:19","fileurl":""},{"id":63917,"heading":"One Eyed Socialist Jackass","article":"What tree do you lefties imagine money grows on? Why not pay all workers $50 bucks an hour, after all THEY are the ones who make everything possible. Of course, there would BE no jobs, businesses, or any of that other good stuff, just everyone on the dole. But wait, that is what all socialists want, everyone depending on the benevolence of a socialist government. Like the man said, where in the world has THAT worked yet?\r\nOne Eyed Fool, tell me true, have YOU ever started a business, or anything else, except maybe a student dmomstration?","author":"Burma","parent_id":63756,"mime_type":"text\/plain","created":"2003-06-09 15:07:36","modified":"2003-06-09 15:07:36","fileurl":""},{"id":63929,"heading":"Labor Unions","article":"Right on Burma! Labor unions are methodically killing the golden goose.\r\n\r\nA single ticket to a Los Angeles Laker game, not the best seats, is now up to $160 per ticket per game. Try taking a family of five to a Laker game and getting decent seats.\r\n\r\nWhy is that? It's the players union and the agents. \r\n\r\nUnions have the same effects in many industries. They are ruining the game whatever the game may be.","author":"Bush Admirer","parent_id":63756,"mime_type":"text\/plain","created":"2003-06-09 16:23:45","modified":"2003-06-09 16:23:45","fileurl":""},{"id":63931,"heading":""bush admirer "is a fool","article":"it's the lakers' pig owners and star palyers who are making most of the markup,not the cleaners or booth clerks or other living-wage workers you idiot.\r\n\r\neat it.","author":"logos","parent_id":63756,"mime_type":"text\/plain","created":"2003-06-09 16:29:11","modified":"2003-06-09 16:29:11","fileurl":""},{"id":63939,"heading":"logos is an idiot","article":"If you'd pull your head from you posterior, you'd see that you're agreeing with what BA said...\r\n\r\nThe cleaners and booth clerks and other living-wage workers could never hope to afford to see the Lakers, thanks to the player's union-driven high player salaries.\r\n\r\nYou are actually arguing on the same side as BA, but you can't even see it. You just whip out the knee-jerk insults.","author":"daveman","parent_id":63756,"mime_type":"text\/plain","created":"2003-06-09 16:49:14","modified":"2003-06-09 16:49:14","fileurl":""},{"id":63944,"heading":"caveman is an idiot.","article":"And if caveman keeps it up, his telephone number will be published.","author":"@","parent_id":63756,"mime_type":"text\/plain","created":"2003-06-09 18:01:00","modified":"2003-06-09 18:01:00","fileurl":""},{"id":64233,"heading":"@ is a poopeyhead","article":"And if YOU keep it up, I'll just call my dad. He's a mess hall sergeant and he'll kick your ass!!!!","author":"daveman","parent_id":63756,"mime_type":"text\/plain","created":"2003-06-11 15:59:48","modified":"2003-06-11 15:59:48","fileurl":""},{"id":64244,"heading":"I'm really mad.","article":"Someone slashed my tired. Rather than "wash me", the enemy left a nasty message on my rear view window. It read, "long live the resistance."","author":"daveman","parent_id":63756,"mime_type":"text\/plain","created":"2003-06-11 17:35:00","modified":"2003-06-11 17:35:00","fileurl":""},{"id":64258,"heading":"@ and coward fake","article":""And if caveman keeps it up, his telephone number will be published."\r\n\r\nWhat are you afraid of, hmmm? Can't handle disagreement? Doesn't look like. Poor little fellah...maybe someday the other testicle will decend, then you can behave as a rational adult.\r\n\r\ncoward fake: You are just too stupid for words.","author":"daveman","parent_id":63756,"mime_type":"text\/plain","created":"2003-06-11 20:06:06","modified":"2003-06-11 20:06:06","fileurl":""},{"id":64507,"heading":"Bogus post above","article":"I did not submit the above post.","author":"daveman","parent_id":63756,"mime_type":"text\/plain","created":"2003-06-13 13:06:08","modified":"2003-06-13 13:06:08","fileurl":""},{"id":77525,"heading":"Mr.","article":"Governments may indeed put a gun to a business owner's head and force him to pay a "living wage." But governments cannot compel him to figure out how to increase productivity in order to pay higher wagers, which is the only way a business could survive the increased expenses.\r\n\r\nEither businesses must move to another municipality -- or they must lay off employees whose honest labor is not yet worth the "living wage." The busboy who's hoping to be a waiter; the cashier who's hoping to be a manager; the receptionist who's hoping to be an executive secretary -- they are the real victims of the "living wage." Their freedom of contract is deprived, and with it their hope for improving their quality of life. Clearly those in support of the "living wage" do not have the laborer's interest in mind. They will gladly destroy their employment for the chance to punish and control businessmen. That is their real, secret, vicious motive.","author":"Chip Joyce","parent_id":63756,"mime_type":"text\/html","created":"2003-08-18 00:19:22","modified":"2003-08-18 00:19:22","fileurl":""},{"id":77527,"heading":"I just have obe question for you capitalism supporters...","article":"What kind of world do you want to live in?\r\n\r\n"What tree do you lefties imagine money grows on?"\r\n\r\nThe one banks pick it from. You have no concept of how money works. It only exists when banks decide when and how much. HOw do you think home loans work or any of the money Americans currently are spending? Somebody's doling it out somewhere. Like Sheepdog said, you think capitalism "...works great if you're a corporation receiving tax supports or subsidies. You just don't like the public treasury being used for public needs."\r\n\r\n"But wait, that is what all socialists want, everyone depending on the benevolence of a socialist government. Like the man said, where in the world has THAT worked yet?"\r\n\r\nSilly. Where has capitalism worked yet? Under a system of global capitalism more people are starving, impoverished and without clean water and medical care than ever before. Even that sorry excuse of a cummunist state the Soviet Union was 2nd world before capitalism. Now it's dropped to the 3rd like most everyone else, a secret that this media\/government doesn't want anyone to talk about. And don't talk about Cuba and North Korea. If the United States weren't imposing such crippling sanctions on them, they would all being living better than a good number of Americans.\r\n\r\n"...Labor unions are methodically killing the golden goose.\r\n\r\nA single ticket to a Los Angeles Laker game, not the best seats, is now up to $160 per ticket per game. Try taking a family of five to a Laker game and getting decent seats."\r\n\r\nFunny how capitalism apologists cling to the Professional Sports Industry as their best argument against unions and minimum wage standards. They never use food, clothing, shelter and medicine. You know, the actual necessities for survival. Who gives a crap whether a family a five can get a decent seat at a Lakers game. That's what television is for. Those kids will be better off using that money for other things. And what about the players' union? Can you count the number of professional athletes versus the number of sweat shop laborers. And it is the owners, not the players who make the most money. Your argument against unions using ball players who number in the hundreds rather than the millions does not hold up to the most elementary of scrutiny. ","author":"Take the red pill","parent_id":63756,"mime_type":"text\/plain","created":"2003-08-18 02:08:01","modified":"2003-08-18 02:08:01","fileurl":""},{"id":77880,"heading":"Scholar","article":"I hope the above author is making an attempt to appear clueless. I fear for the future of this country if there really are people that stupid.\r\n\r\n","author":"Ted Thompson","parent_id":63756,"mime_type":"text\/plain","created":"2003-08-20 03:06:17","modified":"2003-08-20 03:06:17","fileurl":""}]}